5 Steps To financial freedom for online course Creators

  In this post in this article, we'll outline five important steps towards achieving financial freedom as an online course designer as well as an accounting system to assist you in your progress.

But how can you ensure that incorporating online courses into your business model will create the money, time and location freedom or even lifestyle that you desire? What is the process for building a business that will support your goals, but not one that becomes burdensome because you didn't build it in the right manner?

In this article this article, we'll provide five steps you can take to increase your financial education to help you create an online business that gives you true financial freedom.

Before we jump into the process, it's crucial to understand the concept of financial literacy is, and why it's essential for achieving the financial freedom you desire.

What is financial literacy ? why is it important?

Have you ever asked yourself questions like...

"How will I manage to pay my bills every next week?" "What percentage of the funds on my account in the form of profit?"  
 "When can I afford to pay someone to join my team, increase my team, or let my time go?"  
 "When I will be able to earn the regular salary?"  
 "How can I understand and make sense of financial statements?"

If you answered yes to one of the above questions doing some work on the basics of financial literacy can help you gain the clarity you've been searching for.

Financial literacy is:

A combination of awareness, understanding, abilities, and behavior necessary for making sound financial choices and ultimately achieve individual financial security.

The Organisation for Economic Co-operation and Development (OECD)

In the context of an online-based course for business, it's your ability to use financial data to make business-savvy decisions.

Let's look at five methods to improve your financial literacy on the path to financial freedom.

Five steps to boost your financial knowledge

  1. Invest in financial education to stay clear of common mistakes

For a business proprietor Your education when it comes to finance should be continuous.

In this case, understanding the foundations for creating a cash flow positive firm is essential.

We see a lot of course designers skipping this step. This is an enormous error.

It's common to emphasis on making profits as quickly as they can and launching huge launches with little attention paid to setting the right financial foundations for building a sustainable company from the beginning.

What would you do to construct your own house if didn't have some idea of the best way to lay out the foundations and keep the house from collapsing into the structure?

Most likely not, but why would you?

We see a lot of online course creators skip the crucial step of understanding cash flow and end up making costly and unwise financial choices in their online business. Do not make the same wrong choice!

In order to help you learn To help you learn, here are some frequent mistakes that the creators of online courses commit. If you feel like you're making the one of these traps, take note and begin to look deeper into these areas to find opportunities to learn:

• Hiring staff or a contractor even if you don't have the means to do it (or sufficient funds to pay for unexpected events like losing a client, an underperforming course, etc.)
• Purchasing software subscriptions, training or tools that you don't have time to actually learn or use efficiently. This ends up becoming an expensive (and frequently silent) cost to the business each month or every year.
• The buying decision is based on gut feel or an impulse (Black Friday, anyone? ) and not being able to use financial information to confirm that the decision is actually a good one.

In order to avoid these pitfalls, we recommend becoming more knowledgeable about finances through investing in your knowledge about these issues, or seeking out an experienced advisor to work on the roadblocks that hinder your business.

  2. Create your financial freedom system

Alongside the process of setting up an online cash flow-positive enterprise, you'll need an accounting software system that will help you to manage your finances when you expand.

Bean Ninjas has an accounting model dubbed The Financial Freedom Accounting System. This model is created to help you take control of your finances.

Five elements are included in this structure:

• Accountancy software. Create a cloud-based financial system with guidance from an accounting expert (accountant or bookkeeper). A cloud-based accounting program lets you maintain track of your financial objectives from anywhere you happen to be. There are a variety of options, like the Xero, Quickbooks, MYOB or Freshbooks.
• flow banking. Create a process that separates your personal and business banking. This will help you create structure to help with tax payment as well as forecasting cash flow and ensuring you can pay yourself a salary from your business income.
• Coding for consistency. Get consistent with the way you categorize transactions in the accounting program you use. It is important to share this system with your bookkeeper or accountant.
• Bookkeeping rhythm. Set aside time and establish a schedule throughout the week to concentrate on prioritizing your accounting as well as finances. When you establish a routine out of it, you'll be able to better assess your financial health and make the necessary changes.
• Relevant reporting. Create and analyze promptly financial reports, allowing the business to take data-driven choices.

  3. Increase the income you earn from your asset

Make an investment in an asset that generates income which eliminates the need to exchange time for money as well as grows year after year.

  4. Place (or invest) the profits in an investment vehicle

One way to financial independence is to invest the earnings of your venture into an investment vehicle that will increase your money.

The goal is to increase your income by letting your investment vehicle produce additional income for you and free you from traditional exchanges for time and money.

The most common examples are:

• Making investments in the stock market
• Investing in property/real estate
• Insuring online-based businesses that provide consistent"affiliate" ("passive") income

A word from the wise The fact that you can earn "passive" income doesn't mean there is no work involved. The types of vehicles require a significant amount in time and effort prior to purchase, in addition to oversight to ensure your vehicle will continue to offer value to your end-user.

Selecting an investment vehicle requires that you do your research to determine which one best suits your needs depending on the state of your company. If you're not sure where to begin, talk to those in your circle that are investors with a track record are trustworthy and know or engage a professional to guide you through the options.

A suggested reading list to start: The Intelligent Investor, Getting started in value Investing along with the Barefoot Investor.

  5. Take advantage of the journey towards financial freedom

The term "financial freedom" can mean different things to different individuals. It's crucial to understand what it means for you. It's not only to are aware of whether you have achieved your goals, but also so you can celebrate milestones along the way!

The most common definition for achieving financial freedom isthat your passive income pays everything you need You have complete control over which projects you are putting your precious time and effort to.

Here's a brief overview of the steps you need to take to achieve financial freedom in a handy informationgraphic

As you can see, for you to realize your financial independence goals using online courses you'll need to understand the bigger view of your company's finances, then set up an accounting system to allow you to track, measure and understand the numbers.

  Are you on the way to achieving financial freedom? We'd like to know what specific learnings have helped move your business towards the goal. Let us know in the comments.

  Anfernee Chansamooth  

Anf is the learning and Community Lead at Bean Ninjas, a bookkeeping service business. Getting started and want some guidance in setting up an accounting program that can lead to financial freedom? Discover how you can find the concealed cash by using Xero by watching the no-cost Bean Ninjas video mini-course.