We all have different needs and wants. Therefore, financial freedom means different things to different people.
Typically, financial freedom refers to having monetary stability to do whatever you want in life without worrying about money. However, other people define financial freedom as the ability to retire early and not work again in their life.
Ten Steps To Attaining Financial Freedom
With enough savings, investments, and cash at hand, you can live the life you want and provide for your family.
Although it may seem far-fetched, it is possible to achieve financial freedom. Here are ten habits that can help you get there:
1. Understand where you are at
The first step to achieving financial freedom is determining your starting point. Knowing your current financial status makes it easier to know the amount of money you need to live freely and pursue your passions.
You must compile all your debts, including car loans, student loans, mortgages, credit card loans, money borrowed from friends or family, etc. Then, carefully add all your savings, including your monthly payments like salary and side hustle.
After compiling all the debts and savings, you will easily come up with a timeline and a plan to achieve your financial freedom.
2. Look at money positively
You need to change how you perceive money. Have you ever heard of the law of attraction? According to the law of attraction, we attract what we focus on.
Therefore, if you don’t look at money positively, there is a high possibility you will not make a lot. Some people think wanting money is bad, and that’s not the case. You should start looking at money from a different perspective, i.e., as a tool to make your life easier.
We all need money to buy the things we need and want to make our life easier. If you have a different perspective on money, you will feel better about yourself and work harder to make more, thus attaining financial stability.
3. Write down your goals
It is important to have set life goals and try to achieve them. We all have different life goals, which means we have different timelines.
To achieve financial freedom, you need to write down your life goals and try to achieve them. It might be hard to achieve all your goals, but nothing is impossible if you have realistic goals and a timeline.
Your life goals should be tied to specific things and number you want to achieve. For example, if your goal is to pay your student loan and buy a house before turning 30, you can achieve that if you work towards it. However, you must figure out what you want in life and work towards achieving it.
4. Track your spending
Knowing the amount of money you spend in a month and the things you regularly buy is crucial. One of the problems most people encounter while trying to achieve financial freedom is spending money unnecessarily.
It is hard to save and attain your dreams if you don’t know your spending habits. Try to live within your means and avoid impulse buying if you want monetary stability.
5. Pay yourself first
Regardless of the amount of money you make, you need to save money to achieve financial freedom. As a rule of thumb, always pay yourself before paying any bills or spending your money on other things.
After paying yourself and the remaining amount of money is not enough to cover the bills, you will get innovative and get extra income. Therefore, paying yourself helps you save money and find other means of supplementing your monthly income.
6. Spend less
If you spend money buying things you do not need, you will always be in debt, and your chances of achieving financial freedom diminish.
You can spend less via negotiating, looking for offers and discounts, or spending on basic needs only. Remember, if you start making more money, you will be tempted to spend more, and that’s not right.
Spending less helps you realize you can save and know that you do not need some things to survive in life.
7. Buy experience, not things
Although buying things and traveling is fun, sometimes experience is more valuable. To achieve financial freedom, you need to know what matters to you and the people you love.
Do not spend money you do not have to pretend or show people you have money. Instead, create memories that will last with your family and friends.
For example, if you cannot afford an expensive trip, look for affordable options to avoid straining yourself. Remember, all that matters are memories and the good times you create with your loved ones.
8. Pay off debt
You cannot achieve financial freedom if you are still in debt. Debts attract interest rates, and working to become debt free is one of the best financial decisions you can make. Paying debts offers you peace of mind.
With peace of mind, you can work more effectively, make rational decisions and invest in profitable ventures. Start paying off the small debts and then advance as you continue saving and investing.
9. Create additional income sources
Working from 9 to 5 might seem tiring, but it is important to supplement your income. You need to have other income streams to achieve your financial goal. There are numerous sources of income to consider, including:
Freelancing
Becoming an uber driver
Trading (invest in stocks)
Become an affiliate marketer
10. Invest in your future
After paying off the debts and growing your savings, you need to invest in your future to guarantee financial freedom to you and your loved ones. Getting a financial advisor and taking care of your health can save you a lot of money in the long run.
A financial advisor helps you make the right investments and stay on the right path to becoming financially stable. Poor health maintenance affects your financial goals because you spend a lot of money.
Ensure you take your time to exercise regularly, eat healthy meals and visit your doctor regularly. You can change your lifestyle, for example, quit smoking or drinking, get enough sleep and get insurance cover to ensure everything is under control.
Finally, research more about finances and seek help from financial experts to make the right financial choices.
