Few issues catch my attention more in the field of personal finance than that of financial emancipation. I started working at a young age, at age 14, of my own free will. I wanted to earn some money. That initial experience led me to understand early that, although the vast majority must sell their time and workforce to live in a capitalist economy, the experience of being exploited is not in all cases the same.
While some people worked 10 hours per day for 6 days a week, others do 8 hours for 5 days, others 6 for 5 or 6, others work day by day and so on. Of course, I also noticed that there were a few who never transpired the shirt and yet had a similar or higher level of consumption.
We will distinguish between three types of different emancipation included within the main emancipation: the financial one. We will order them chronologically to try to travel together this exciting path: the emancipation of work about dependency, labor emancipation, and economic emancipation.
1) Emancipation of work in a dependency relationship
It is the most difficult step to take. It means abandoning the employee mentality, stop working on third-party projects to start bringing our project (s) to life. Aguinaldo, vacations, social work, and retirement are some ingredients of an à la carte dish that we could call “false social certainty”. This dish acts as bait to keep us in a game that takes us away from the possibility of carrying on the life we want.
The emancipation of work about dependency can be carried out gradually (most recommended) or compulsive (very common in the times that run through the increasing layoffs).
This first step is to convince your boss that part of the daily or weekly work you can do more efficiently from your home, under the teleworking modality, in a win-win relationship: the company lowers its operating costs and risks of absenteeism, while the employee saves travel time and miscellaneous expenses (transportation, snacks, meals and more).
Teleworking will allow you to have extra time during the day to start shaping your new independent work project, which must be thought from its genesis with a clear bias towards the creation of a passive income generating system. In this column, you will find detailed information to put a project of this type into practice.
Never in the history of mankind were better conditions than the current ones to undertake. We must take advantage of the Internet boom to develop projects that point to the monetization of what we like to do and for which we feel fit.
At this point, there is the following warning: if we focus only on changing our work in a dependency relationship for our enterprise without paying attention to the importance of passive or semi-passive income, we run the risk that our path to financial emancipation will end here. It is a stage where, within the framework of the 3 axes that exist to generate income (body, ideas, money), we need to leave the “body” axis and gradually position ourselves in the “ideas” axis.
2) Labor emancipation
The second step is to separate what I do with my time from what I do to generate income. This is equivalent to untying my time from the monetary world to enjoy it more and more. Is this possible? Totally. Your reality is something negotiable.
The key is to study in-depth what are the 6 sources of income generation to position ourselves in the 4 that have the best income/time ratio. We speak of automated vehicles of financial income (investments), automated vehicles of monitored income (labor projects that do not require our presence), automated vehicles of patented income (royalty income) and automated vehicles of proprietary income (rental of a property that belongs to us).
I am going to share a secret: it is convenient to tell from the beginning a real argument about why I want to free my time. The best way is to write on a calendar the activities that I am going to do on the days of the week that I will stop working (although not receiving income).
The things we are passionate about becoming cornerstones at this stage of emancipation. Of course, they cannot consist of ideas as abstract as traveling, doing nothing or sleeping.
3) Economic emancipation
The third and final step is the need to build a column of solid and stable passive income, capable of going through the strong turbulence of the Argentine economy, one of the most volatile on the planet. Otherwise, a financial shake will likely return us from a stroke at zero.
Economic emancipation goes beyond labor. To achieve this, we must focus on the diversification of our sources of income, but also the diversification of currencies.
This column entitled “How to generate income in dollars” talks about the subject. As told here, generating income from the sale, rental or investment of our internal and external resources in other countries is something feasible today. It is only a matter of informing and refining the aim.
Is the country sinking into a financial crisis that seems endless, and we are here studying how to live without working? Yes, with great honor and with a great sense of opportunity: economic crises are the ideal breeding ground to make the financial leap taking advantage of the opportunities offered by the troubled river.
The destruction of large industrial sectors results in an unsatisfied consumption that, when the tide changes, will clear the land and demand thousands of products and services that, with ingenuity, we can develop and provide.
Financial emancipation, with its three necessary and correlative steps, is more than ever at our fingertips. It is time to act.