Introduction:

According to the book “ The 10 Secrets Revenue Canada Doesn’t Want You To Know! ” by David M Voth, 91% of Canadians are financially challenged when they retire at age 65. 

All hard-working Canadians pay 35% to 52% of their pay-cheque as tax before seeing any money in the bank account; another 35-40% of what we receive after tax is paid for the mortgage payment and other debt expenses. Only after these two major expenses are paid can we use our hard-earned money for living and lifestyle expenses like food, travel, Education, Entertainment, Fitness etc. Families and homeowners are left with very little or no cash flow for long-term savings for early and wealthy retirement.

We are too deep in Debt, which does not build our long-term retirement income. We also have too much Tax Bills and on top of it we put in little or no effort to know “how taxation works.”

 It is said about Tax that: “ The less you know, the more you pay.” 

Understanding Taxes and Debt Can Significantly Changed Up Or Down the Results, Fuelled By The Way You Re-Arrange Your Financial Affairs! 

In this article, we will explore the three milestones that will lead you from your current financial situation to Total Financial Freedom, all made possible without working extra at work or having to cut down on your current lifestyle by adopting the universal rules of money through the Hexavisionary framework.

Achieving Financial Security and Freedom is a dream that many Families do not dare to dream. It seems we have been conditioned to believe that it is meant for only the lucky few, which is far from the truth. 

Welcome to a transformative journey toward Total Financial Freedom, a dream every hard-working Canadian can achieve. Contrary to popular belief, financial freedom is not an unattainable goal reserved for a select few; it is within your grasp. All you need is determination, knowledge, and the right guidance to embark on this life-changing path.

What is Total Financial Freedom?

It is when you reach a point where your investments generate enough income to cover not only fixed expenses like Mortgage payments and utilities but also your desired lifestyle expenses. This journey is marked by two significant milestones: financial security and Financial Freedom. Let's explore how to embark on this transformative journey toward Total Financial Freedom using the Hexavisionary framework.

Financial Security - The First Milestone:

Financial security is the initial milestone on the path to total Financial Freedom. This is to be achieved while accumulating savings and actively working towards making an income to pay the current bills. It is reached when your ability to generate an income is protected even when you cannot go to work for any reason and you continue to save for long-term goals. Having the security that your fixed expenses like mortgage, utilities, phone bills, insurance, and other essential costs will be met. That's when you gain a sense of stability and peace of mind, knowing that your basic needs are well met and that even in your absence, your family will be taken care of no matter what.

To Keep more of your money  and attain financial security, focus on building a long-term financial plan while adopting the 3 Universal Rules of Money :

-Understanding how your money compounds over time (The Rule of 72)

-How money gets taxed ( Tax-Now, Tax-Later or Tax-Never)

-How money grows. ( Fixed Growth, Variable Growth or Indexed Growth)

Financial Freedom - The Second Milestone:

As you progress on your financial journey, the next milestone is financial freedom. Achieving financial freedom means your investments not only cover your fixed expenses but also provide for your desired lifestyle expenses like your vacation expense etc. You can indulge in activities you enjoy, travel, dine at your favourite restaurants, and pursue your passions without worrying about financial constraints. When you reach this milestone, you can retire from active work life. Many assume retirement is when you are 65, but it is invalid. You can only quit work when your investment pays all your bills, regardless of age. You can continue to work after you attain financial freedom, not because you must pay the bills but because you want to keep contributing to society.

To attain financial freedom, continue to grow your investment portfolio, optimize your income streams, and minimize tax efficiency. The 5 Pillars of Investments, namely stocks, bonds, real estate, private equity, and alternative investments, play a crucial role in diversifying your assets and enhancing your financial security for a lifetime of income. Which take care of 4 cornerstones of investments Growth, Safety, Tax efficiency, and Protection of the asset or capital invested. 

Total Financial Freedom - The Ultimate Goal:

The pinnacle of the financial journey is Total Financial Freedom. At this stage, you have reached a point where your investments generate a surplus amount every month, even after covering all your fixed and lifestyle expenses and more. You have complete control over your finances, allowing you to live on your terms. You can do what you want and whenever you want. Your assets and investments continue to build wealth for you and your future generations without having to work for it.

To achieve Total Financial Freedom, embrace a continuous learning mindset and stay informed about economic trends and investment opportunities. Remain disciplined in your financial practices and regularly review and rebalance your investment portfolio at least once every six months to ensure you are taking advantage of changing economic conditions.

Conclusion:

The journey from the current situation to Total Financial Freedom may seem daunting. Still, with the right approach and the guidance of the Hexavisionary framework, it becomes an achievable and rewarding endeavor. Begin by securing your financial future through prudent investment decisions and progress towards financial freedom by optimizing your income streams. Finally, embrace the ultimate goal of Total Financial Freedom, where your investments not only support your desired lifestyle but also provide you with surplus wealth. Remember, financial freedom is not a one-time event but a continuous journey that requires diligence, discipline, and financial education. You can embark on this transformative journey toward Total Financial Freedom with dedication and the right mindset.

Rethink your retirement, question conventional wisdom and have fun doing it. Learn more about how you can start your financial planning by watching the master class.

Cheers and Good Luck!