Real Estate

Review – 5 Steps to Financial Freedom

5 Easy Steps To Financial Freedom: Do What You Love And Get Rich Doing It, Duane Harden, 2012, ISBN 9780984822706

Many books have been written on how to make money doing what you love. This book reduces the process to just five steps.

First of all, you have to commit to changing your life. Don’t just say it; you also have to mean it. Write down a Creed or other inspirational saying and post it somewhere where you can read it every day. Some people, knowingly or unknowingly, will try to put you down, convinced that you are going to fail. Limit your exposure to these people.

What are you passionate about? What do you like to do? That is where you should look for income generating ideas. Don’t get into, say, real estate investing because all those infomercials have convinced you that you’ll get rich instantly. Do it because you want to. Get a copy of your credit report and credit score. If your score is Average or Poor, work now to correct it. The book talks about using OPM (other people’s money) to finance your company. A bank or other lender will have a hard time approving your loan application if your credit score is Fair.

It is normal to want to plan and plan and plan, removing all possible obstacles before starting your income generating plan. You may just be overanalyzing yourself on the way out of a great business opportunity. At some point, you have to just do it (to quote Nike). If things don’t work out, pull yourself together, regroup, and start over.

You must register your business as a separate business entity (such as an S Corporation or LLC) with the state and federal governments. If for no other reason, do so to reduce your personal liability in the event someone is injured on the premises. You can’t do this alone, so you need a team behind you. Start with a CPA and a lawyer who specializes in real estate investing, or whatever your business entails. The book also explores what to do when it’s time to sell your business (your CPA says you’ve gotten all the tax breaks you’re going to get, or you decide it’s time to retire).

This is an excellent book, written by someone who has been through the process. It is easy to read and full of information. The hardest part is convincing yourself that now is the time. This book shows the reader how to do everything else.

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