The Freedom Plan – Investing in Yourself

In the past week, I must have talked to a hundred people (well maybe that’s a teeny bit inflated) about a term I concocted a few years ago called the “freedom plan.” Quite simply, the freedom plan is a plan you adopt to fund your freedom.  In other words, you invest in yourself to pursue your passion.

When I was in career transition from president of an advertising agency to budding author and professional coach, I knew my income was going to take a serious dive during the first year while my new business ramped up. In the old days, I would have found the idea of making less money to be an insurmountable hurdle. And I would have run right back to the profession I knew (and didn’t love) to find another position that was at near or equal pay. In this frame of mind, I was stuck.

If you think about it, anytime a new business or major endeavor is starting up, you can expect to make some sort of investment. This applies to changing careers from one field to another in existing organizations as well. Some people pay for advanced education or training to make a change. That can be expensive. Some entrepreneurs look for outside investors and/or invest in their business themselves. That’s not cheap either.  Another way is to accept the idea of temporarily making less income while you get started.

If you view this transition period as a time to invest in yourself, you will get unstuck. You can decide to cut back to the bare essentials for a period of time (six months, one year or whatever you can tolerate) in order to fund your freedom and pursue what you love. Instead of thinking of this time as a period of lack, think of it as liberation.

Here’s an example of how this concept worked for me. In order to fund my transition, I reduced costs by cutting everything that wasn’t essential. Things like: expensive dinners out, pedicures, a new car after mine reached 100,000 miles, cable TV (yes, I cut down to the basic five channels) and extra clothes. If someone invited me to dinner at an expensive restaurant, I’d suggest a more casual (and affordable) place. Occasionally I’d get teased about this, and I’d smile and explain that I was on my freedom plan and would rather pursue my dream than drink expensive wine. I called my savings my “freedom money” and guarded it fiercely. Instead of thinking about it as not having enough money to buy extra things, I thought of it as having a choice. The money I saved was money I could invest in myself… and you can do the same.

The formula is simple:

• Reduce your expenses
• Cut out everything you don’t need
• Change your mindset from lack to liberation
• Pursue what you love

The freedom plan allows you to reevaluate priorities. You can change your focus from having things to having opportunities. Yes it’s a sacrifice, but when in doubt, ask yourself…

 “What is it worth to pursue your dream?”

8 Comments March 17, 2010