Introduction: 

How would you advise someone coming out of school on how they can gain financial freedom? 

This was the question posed to me in a public speaking practice group I’ve been a part of recently.  

Now, I really like this topic, and it was also a bit ironic with timing as that is something I was reflecting on that same day, but more from the angle of knowing what I know now, how different my journey may have been had I implemented some of the things I’m now aware of. 

See, the entire concept of financial freedom and being wealthy and these types of things have been an obsession of mine for quite some time. 

I come from humble beginnings; I used to say I grew up poor for the earlier part of my life, but having been exposed to extreme poverty cases, I’ve since modified my narrative. But suffice it to say, I know what struggle is, and I know 1st hand the effects of not having or coming from money.  
 
As a result, from a young age, I knew I wanted better for myself, so I did everything I could at that point to bring about that change. But unfortunately, I had this very stubborn thought process that I needed to figure it out on my own.  

The consequence?  

A lot of pain, mistakes and lost time.  
 
However, on the bright side, I do genuinely believe the lessons I’ve learned over the years to be invaluable. Most of what I use now is a synthesis of knowledge, resources and tools I’ve gained over the past 20 years of learning about wealth.   

I currently use two essential frameworks called the Wealth Formula by Michael Lee-Chin and my own Wealth Pyramid. However, the time limitations of that particular speech didn’t allow me to dive into those topics as they can be whole-day workshops by themselves.  
 
So, what I decided to share is what I believe is a big-picture overview of 3 essential things you need to focus on when beginning your journey to financial freedom, and those are  
 
Opportunities 
Leverage 
Equity 

1. Pursuing Opportunities: 

Opportunities are the foundation of financial growth. They are defined as favourable circumstances or situations that, when seized, can lead to benefits. Think of opportunities as problems waiting to be solved, with the potential for substantial gain upon resolution. 

Three classes of opportunities hold immense value in life: 

a. Opportunities to Learn: Learning is a lifelong journey, especially critical in youth. Often, we don’t know what we want in life, and only through experience can we gain clarity. Therefore, exposing yourself to diverse experiences, developing skills, and understanding your desires is essential. 

b. Opportunities to Serve: Being of service enhances your overall value, as your earning potential is tied to the problems you can solve. Serving others not only benefits them but also enriches your life. 

c. Opportunities to Grow: A financial freedom journey is a transformative process that challenges you as an individual. Embrace the discomfort of personal growth, as this journey is more mentally taxing than anything else. You will discover aspects of yourself you never knew existed. 

Opportunities alone can make you rich by providing a steady income, but if you aim for wealth, you must also understand the concept of leverage. 

2. Understanding Leverage: 

Leverage is the ability to amplify your output beyond your input. In simple terms, it means getting more done with less effort. There are various forms of leverage, as explained by entrepreneur and investor Naval Ravikant: 

a. Labour Leverage: Imagine building a stone wall. Instead of lifting rocks alone, you can have ten people assist you. Your guidance multiplies the work accomplished. This is an example of labour leverage. 

b. Capital Leverage: Also known as Other People’s Money (OPM), this form of leverage involves using borrowed capital to invest in income-generating opportunities. 

c. Media and Code: Technology and media provide leverage in the modern world. For instance, a single piece of software can serve millions of users. 

Leverage is critical in wealth creation because it allows you to maximise your returns on the time and effort invested in something. It’s a tool that aids in obtaining and growing equity. 

3. Building Equity: 

According to Michael Lee-Chin’s Wealth Formula, equity is a fundamental principle of wealth. It states that all wealthy individuals own high-quality businesses, and equity represents ownership. 

In the context of financial freedom, equity is the representation of ownership in cash-flowing assets. Owning assets that generate consistent income is crucial. This distinction between cash-flowing and non-cash-flowing assets is significant. 

In conclusion, if you are young or in the early stages of your financial freedom journey, consider focusing on these three pillars: Opportunities, Leverage, and Equity.  

These concepts can significantly accelerate your path to financial independence when understood and applied. While each topic warrants in-depth exploration, this overview serves as a roadmap for your financial goals. 

Conclusion: 

Financial freedom is not a distant dream; it’s an achievable goal for those willing to embark on the journey.  

By recognising and seizing opportunities, understanding and applying leverage, and prioritising equity, you can pave the way to a prosperous and secure future. Remember, the path to financial freedom is a lifelong adventure, but with the right mindset and strategies, you can navigate it successfully.  

Start today, and let these principles guide you towards a healthier tomorrow.