The Break Free Blog

Where you are not alone in Breaking Free

The Four Prices Of Breaking Free

Nov-11-2010 By admin

You may have realized by now that I have a lot to learn in breaking free from the job market to find freedom and I hope I will continue to do so. There is something I am learning already, however.

To find freedom you have to be prepared to pay the price.

In breaking free you will have to go against the wisdom of the majority of the population. After all, if they believed the same way more would be self dependent and going it alone.

I suppose every worthwhile goal or dream is worth that extra bit of effort and focus and breaking free to find freedom is no exception.

Earlier we explored the idea of persistence and persistence requires you to understand there is a price to pay and keep paying it until you find freedom.

So What Is The Price To Pay?

Of course the price will vary according to whatever the outcome you have chosen to pursue but there are four areas that will be affected.

1. Relationships.

Let’s get the pain out the way first. There will be people close to you who will need to understand what you are doing and why you are doing it.

I pray you have a husband or wife or boyfriend or girlfriend who understands you well enough to support you in breaking free. Having someone who loves you unconditionally will give you respite when things get tough. He or she will allow you to relax when it is needed.

Unfortunately I never have found someone who loves me for who I am (don’t you feel sorry for me?) but I have been extremely lucky in the second area: friendships.

Good friends who understand you are also very useful too. They are your friends whatever and accept what you are doing.

So why do I consider relationships a price?

If you are focussed on the need to find freedom, you will have less time to maintain such relationships. You will have less time for your spouse and your children and will spend less time down the pub with your friends.

It is possible you might lose a relationship as a result. I hope not but if it seems likely you may make a decision to continue or give up your dreams to maintain the relationship. I am not going to tell you what to do in that situation but I really hope it is not your spouse you have to reconsider.

A friend who does not understand may not be a friend anyway and you can make the decision to see less of that person. Be gentle and firm but keep to your course.

Much of the stress can be removed in any case by discussing it with your friends and family as you start out. Be open and make it clear why you want to break free and find freedom and ask for their support. In this way you can show you do cherish the relationship.

Point out that by investing the time in your venture now you can spend more time with them later.

And they will admire you more for being steadfast rather than giving up when it gets tough.

2. Time.

In breaking free you need to do whatever it takes to get the job done. By going it alone you can only rely on yourself so you need to commit all the time you can to ensure success.

Of course you will need time to relax and exercise but this has to be controlled to make the best use of your work time.

This all means you will have to commit time now to get it back later. It will be inconvenient. As mentioned above, you will lose time with friends and family and you will have little spare time.

You will go out less often (unless for business purposes of course) and non-essential jobs will get done less often. Does the world end if the house gets a little scruffy? No.

For the time being have laser focus on breaking free. Buy your time back.

3. Money

There will be some financial investment needed as you work to find freedom.

Do whatever it takes to chase down your goal. It will be worth understanding early on what is required and you can then plan a budget.

Be careful not to overspend on items or subscriptions not essential to your business. Become money wise and understand your priorities, as you break free. There are often ways to save money and be frugal. For example, if you are working online there is often free software to be found that save you a fortune.

Never be afraid of approaching someone already successful in your field as they might give you some free advice too.

It does mean that the money for luxuries around the home is going to reduce and perhaps the family holiday will be cancelled this year. You will need to concentrate more on your business costs.

In a meeting recently, Sir Alan Sugar asked a group of millionaires how many times they had gone bankrupt in the past. After some discussion they realized the average was 17 times each!

Now I am certainly not saying we need to go bankrupt even once but it does show their financial commitment and the cost required in breaking free.

4. Mistakes

We are brought up to be afraid of making mistakes but if you are going to do anything you are going to make mistakes. It is part of the process you go through to break free.

The price is to make the mistakes and learn by them. I guess the trick is to change them from the price to an asset. Make the mistake and turn it into an education – and try not to make the same mistake again!

Never beat yourself up or worry what others might think if you make a mistake.

Conclusion

The truth is paying the price of success makes you a better person.

It does take guts and a dream and a passion for what you are doing. By breaking free to find freedom you can change your life and those of the people around you. You will then fulfil your role in life by accepting responsibility and improving your corner of the world.

Paying the price of going it alone brings more rewards than you might think.

“Happy are those who dream dreams and are ready to pay the price to make them come true”

Leon Joseph Cardinal Suenens (Archbishop of Malines-Brussels 1904 – 1996)

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The Ever Spinning Wheel of Income

Nov-8-2010 By admin

A few days ago I wrote about money and how some people see money as bad and so are reluctant to break free and find freedom. I realised just after I published that post that too many misunderstand how money works.

Now I am no millionaire (yet) but I think I have a basic idea as to how the economy works. I recall from my far-off days of learning economics (during the Stone Age) studying what is termed the Circular Flow of Income. In fact I have kept that knowledge with me all the time and find it useful every now and again.

In my opinion the Circular Flow of Income is central to an understanding of money and so is key to your ability to break free from a job and become self dependent.

Now, before I try to explain my understanding of this process, I must first point out, like so many theories, too many academics have got to this first and, like so many academics, they have made it seem more complicated than it really needs to be. Start talking about ‘micro-economics’ and ‘macro-economics’ and I will start thinking about visiting the bog. I believe to understand it properly it needs to be simplified and applied to the real world in which we all live.

So let’s try.

Smart Cars And Dumb People

You have some money. I don’t know where you got it from but it may be from savings or from wages or you sold something or you bullied the little kid down the road but you have some money. Let’s say it is £10.

You feel flash. You want to buy a car. And, as it is my model, you are going to buy a Ferrari whether you want to or not.

Okay, having just checked the ads on one of my favourite websites, Pistonheads.com, it seems a reasonable price for a new Ferrari F430 Scuderia is £206 000. So you take your £10 and put it in with another 20 599 £10 notes and toddle off to the Ferrari garage to buy a nice red version.

Many people will have just reacted with ‘you flash git,’ as many will when you park your nice new car outside your house.

At the back of their reaction are two feelings:

  1. They can’t have one so why should you?
  2. To afford such a car you must have taken the money away from someone else. In other words, for you to win someone else must lose.

Both of these statements are incorrect.

First, these cars are not made for particular individuals. Ferrari or Aston Martin or Porsche or any of the manufacturers are not going to check your social standing if you turn up with a ton of money.

As we will discover as we go through this breaking free journey and find freedom, it is only your state of mind that dictates whether you can afford such a vehicle. In reality, anyone can buy a car like that if they really want to do so.

Clearly the cynics do not want to get one badly enough.

In a true growing, democratic society the Ferraris are there for anyone that has the burn inside them to get one. In a way I want you (and me) to find freedom enough to buy one if you want.

The second of the two negative feelings of others on seeing a Ferrari brings us to the Circular Flow of Income.

The Circular Flow of Income

Let’s examine what happened to your original £10 when you bought the Ferrari.

To keep it simple we will say the money went from you to the manufacturers. Your £10 is now showing in Ferrari’s bank account in the town of Modena in Italy.

Does the money stay there? No. Very quickly the company will need to pay suppliers of parts and services used in the manufacture, including electricity companies, gas companies and so on, and also to pay the wages of the company staff including workers in the factory.

Your £10 is actually given to Luigi who attaches the tyres to the wheels prior to fitting to the car. Luigi is on a good wage and saves a proportion of his money every month.

Patrizia, Luigi’s wife, who looks after the banking, now carefully places the £10 you originally spent in a savings account in the Banca Emilveneta.

Surely the money stops in the bank now, doesn’t it? No, it does not. Any bank worth it’s salt will lend that money out to earn interest. So now your £10 is lent out to Derek, who is living in Modena.

Derek buys and sells online and looks at various websites for opportunities. Very soon he finds your website. For this, I am assuming you are making sales online. He likes what he sees and buys one of your products. In settling the bill with you he sends you the original £10 you included in your purchase of the Ferrari.

Your money has completed its circle.

Conclusion

Obviously this example is very simplified. The chances of such a neat circle are virtually impossible but it does show the most important feature.

Money never stops moving.

We live in a world of abundance. I hope the above model shows that whenever you receive money nobody loses. There is plenty of money around and all you are doing is diverting the flow of money through your bank account.

Even if you bank or invest the money it keeps moving. Whoever you place the money with has a use for it. In fact the original £10 you placed in your bank account was not the same £10 you took out to buy the car. It would have already moved on. Banks loan it out, companies you invest in use it for their costs. Buy a Ferrari and you give the company money to pass on. Give money to a charity and they will inject it into a poor community which will then pay suppliers of the goods and services they need.

I want you to understand that you and I and everyone should not be discouraged from breaking free, going it alone, becoming self dependent by a worry that earning money is not a good thing.

All you are doing is controlling where the flow of money is directed.

I wish everyone could understand that the money is waiting for anyone who wants it. And I mean anyone. Including me. Including you. And we can do a lot of good with it.

Why not divert some of the flow through your door and find freedom?

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Show Me The Money

Nov-4-2010 By admin

One of the reasons for wanting to break free from a job and find freedom is to gain control of your money. The truth is if you are not self dependent, someone else sets your income and too frequently this leaves you very exposed.

The present economic climate means everyone not self dependent, everyone not going it alone, is in a very difficult position. Every day companies and even government departments are shedding staff, which means you could end up with no income, living off handouts or finding a job you really do not want simply to have an income of some sort. There is no guarantee that any of these incomes could not also be removed either.

Oh, wait; surely money is not all that important? Surely the best things in life are free? That is true in many regards but in the modern world living without money is very difficult. It is very difficult to grow all your own food, for example, or to live in a house for free.

Friends and family and sunrises and sunsets are free so we don’t need money really. Of course they are but the lack of money is one of the biggest reasons for divorce and friendships would soon come under strain if you did not pay your way. After all, your friends and family suffer the same financial constraints you do.

The people who are most obsessed by money tend to be those who do not have any. If people say money is not important, you may ask them why they are going to work tomorrow.

Ah, but even the Bible says ‘money is the root of all evil.’ Actually, no, it doesn’t. The relevant passage is from Timothy 6:10 and says:

“For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows.”


Actually I do wonder if the lack of money is the root of many evils. Those who have less money love it all the more. Would crime still exist if everyone had enough money?

So you need to have a balanced and sober view of money. Don’t make it a God but treat it as a resource to be skilfully controlled.

If you are a good person and you have money, you become a good person with money. If you are an idiot and you get money, you become an idiot with money. Money doesn’t change a person. It is entirely under your control.

To me, the better option is to break free from a job and find freedom – financial freedom.

Why not become self dependent and earn enough money so you don’t have to worry about it any more and then you can truly enjoy the free things in life. After all, money can do a lot of good: the charities are always after some.

Going it alone can be very rewarding for many reasons, one of which is to remove money worries from your life.

That would feel good, wouldn’t it?

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