Breaking Down Money Without Being Broke Pt 5

I have shown you the whole truth about the money you work hard for, need more of and trying to save. Now we can talk about using the system as a leverage to be free as much as we can be without being broke.

  1. Save money with interest- look into bank accounts and other financial entities that will give you interest on top of your own money that is just sitting there. The increase earned in the saving account is a payment for the future which is a great return on investment since money/currency is forever in a present state.
  2. Manage your energy, passive income- Currency is a flow of money as shown in part 1, we need to change the direction of the flow of money going back to the banks by re-directing some of the money back to us. The  most effective way to do this is passive income. Passive income is a source of income that come from a cash flow received on a regular basis with minimal or no effort to maintain it. Examples include buying and selling products for a great markup like cars, selling stock photos, licensing music, network marketing, affiliate marketing, setting up vending machines in establishments, cashback reward cards, cashback sites, hiring out space you do not use like car parking space, buying and then selling on properties (both commercial and domestic), rental income, being a silent (non active) partner in a viable business, investment/saving bank accounts with high interest, peer to peer lending to those that cannot get a loan, advertisement spaces on your websites or physical space; as well as, dividends and interest from stocks, currencies, gold, silver, and bonds.
  3. Manage your energy, rethink your work-personal time balance- Like I pointed out before, you get paid for your energy. You only have 24 hours in a day. You work 8 hours, 8 hours to sleep, 8 hours of personal freedom to maintain personal growth and family time. This is is unproductive use of your time. You should have 6 hours to work, 6 hours minimum of sleep, 6 hours of personal freedom, and 6 hours for maintain social and family life. This pattern actually promotes productivity in the office, classroom, and pleasure. Your day can look like this: work 8am to 2pm (6 hours), 2 to 8pm with family/social (6 hours), 8- 1am personal freedom (5 hours), 1-7am to sleep (6 hours), and 1 hour to get ready and travel to work from 7am-8am. However, you can arrange your time anyhow it works for you. You need to manage your energy wisely to get the most out of the life you want! Yes, you would go from 40 hours to 30 hours per week but you can always work 6 days with a 6 hour work shift (depends on employment) and you still will not feel overwhelmed or drained because you have a great balance throughout the week. Something to think about. The best of both worlds is working 30 hours over a 5 day week for a higher paying job!
  4. Have a side hustle- Everyone should turn their passion/talents/possessions into a paid hobby or part time job. Get paid in cash is the best so the tax man can’t claim on your sweat and hard work. This is a great way to create an independent eco-nomy without much control from the sticky hands of the system.
  5. Do not pawn precious resources- Like any good economist, save your golds, silvers, and other precious metals/resources. Do not trade them in for cash. This is your financial reserves. This means your resources are your assets that is held in order to meet expected future payments and/or emergency needs, just like the banks, companies and governments. Keep it in a safe that is not likely to be destroyed or stolen.
  6. Detach from your ego- In order to not become a slave and a turning wheel in the monetary system, you will need to check your sense of reality and belief systems of money. Anything that makes you live outside of your means and creating debt then you need to let those things go, it is engineered. How to manage money like a free person:
  • create an abundance mindset – this simply means, you only think about what and how you will attract of which you will want an abundance in, rather than the default setting, the scarcity mindset. This mindset is what the system uses against you to consume and become impulsive to spend because you constantly thinking what and how little you have have.
  • budget – plan in advance your income stream(s) and expenditure streams monthly or weekly dependent on how often you get your income.
  • downsize – If you find you cannot keep up payments for services, products, business(es), cars and accommodation then reduce or stop expenses by selling the car and get use the money to pay off the rest. Downsize your property so you can save or sell your house and pay off the mortgage and rethink location, property size or property needs rather than tightening the noose around your neck
  • de-clutter – simplify your life. Forget keeping up with the Joneses. Sell what you do no need or serve you anymore on ebay, auction site or a market. Anything we buy, looses value when used, from cars to clothes. Once you reprogram your mind to think this way then you can walk pass possessions that will enslave you. When I go shopping, I have the habit and thinking, “Is this an asset or liability? Will this grow in value?” If it is a liability or/and cannot increase in value, i leave it.
  • delay gratification- this is the best trick for impulsive buyers, if you see something that gives you the impulse to buy, walk out the store and commit yourself 30 mins to 1 week of not re-entering the store. Think about the price you are going to have to pay. For example if I see a suit for £250 that is in fashion, I would try it on and take a picture of it then leave it. I would analyse where that £250 is NEEDED like my 2 weeks worth of groceries, paying back my credit card, paying utilities, etc. After a few days, I would decide if it is worth parting with £250. If I decided not to pay then at least I have the picture to share on Instagram without the expense!

It is by disengaging with your ego and advertisement, you will stop over-consuming and start saving for the purpose of enriching your living. Over-consumerism stops us from experiencing life. When we are on our death beds, we will not regret the things we bought or what we could not afford, it will be the experiences and opportunities we did not seize because we were too busy accumulating things that added no value.

7.   Remember money is not worth it-If you find yourself in a situation where you have to compromise yourself, family, or freedom… just remember is it worth it after all it is only IOU notes. I am talking about debt, spending on credit cards, working overtime constantly, selling drugs, asking for a loan, depression, suicide over massive debt and gambling. There are things you can do (that I mentioned above) to keep yourself from selling your soul for paper and coppers.

8.   Avoid or reduce debits – Cut off any opportunities for anyone to take money out willy nilly from your account. You can do this with only using rolling monthly contracts, paying bills by calling when you want over the phone or using their paper pay in slips, and find free ways to supplement your cable and Netflix shows via online streaming. You will not be able to avoid mortgage, rent and car payment debits but know the days they are coming out so you can keep your eyes on your balance so they do not bounce and you end up in trouble with the bank. Get debits agreements to take money out on the day of your pay day(s) to avoid over spending and not realising you are making a financial deficit.

9.   Credit cards only for emergencies- Credit cards makes the bank money. They get richer with your debt. Don’t let them use you, you use them. You only need one credit card and never exceed spending limit pass your monthly stable budget of disposable income. Limit yourself to only using your credit card for big emergency purchases along with a plan on how to pay back within 30 days! Get a credit card with at least 12 months 0% interest on purchases so you can pay back without always trying to keep up with the interest.

10.   Be the lender not the borrower – Learn to hate to borrow money from people or financial institutions, and learn to love lending to others with high (but reasonable) interests, legal contracts and business plans. This is passive income which is better than leaving your money in a low interest earning saving account.

11.   Claim your welfare – Be in the know of what the government owes you and claim it! They rely on your ignorance to get a way with not paying their dues. Never be ashamed of claiming welfare because the government is never ashamed for taxing you for everything you earn.

12.   Leave Bank loans alone – There are alternatives in the community like peer to peer lending or credit unions with lower interest from banks, and also ask people that trust you to invest in your education or/and business. If you have no one to turn to then take a loan with the full knowledge how much you will have to pay back. Never take a loan out to pay another loan. If you cannot keep up then declare bankruptcy to wipe out your debt and get professional help on building back up a healthy credit score. Also, never engage with bailiff companies or invite them into your property or confirm any personal details, as soon as you do, you are recognising the law is ruling over you and they have the right to act on behalf of the law. Not many people know that these companies pay off your debt for a significantly reduced amount and come to you for the full amount, they make a nice profit. After a while, they will give up on you and write it off as a loss. If you feel threatened then call the police (they are on your side) and record the incident for evidence in court.

13.   Pay your mortgage:

  • understand the structure of repayments, whose components are dedicated not only to the principal (the amount you borrowed) but also interest, taxes, and insurance. This structure determines how long it will take to pay off the mortgage and, in turn, how expensive it will ultimately be to finance your home.
  • overpay your mortgage as it will decrease the interest rate and the bank will not be making money off your debt. Do check the terms and conditions of your mortgage before overpaying – there’s often a limit on how much you can overpay since they have gotten on.
  • if you are looking to get on the property ladder but allergic to the thought of a mortgage, then look into tiny houses and flat pack homes which can leave you mortgage free or al least 30% cheaper to buy than the traditional brick and mortar properties.
  • if you have extra cash lying around then go to property auctions to get a bargain but do your research on the properties you want to bid for before raising your auction paddle! Also, make sure you have the deposit money and you can guarantee a mortgage within 30 days for full payment otherwise you loose the property and deposit.
  • depending on the terms and conditions of your mortgage, you can pay off your mortgage by rental income. To sweeten the deal, gain planning permission to convert the loft or garage or back space into a fully functioning tiny home where you can live rent and mortgage free. You can even become self-sufficient by fitting your tiny home with solar panels and propane for your utilities. This is my favourite one because you have best of both worlds, financial freedom to live a good lifestyle and choose to work or not!

14.   If you have to pay tax buy it cheap – As i explained in part 4, if you have to pay tax or/and register it, you do not own it. Why pay a lot of money for something you do not own?! Not a wise investment.This include buying new cars, latest fashions, popular locations to live, etc. It is a waste of your money and energy so go and buy second hand, live in less popular locations (like out of the city), compare prices first, shop around for cheaper alternative and re-sell products as soon they do not serve your needs anymore.

I hope this article and 5 part series has been helpful in breaking money down without going broke or staying broke. We do have a lot of control in our hands if we stop buying into the matrix. You can have true financial freedom and now it has never looked so easy after this!

Live long and prosperous!



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