What is Financial Freedom?
Financial freedom definition: This commonly means having enough money and savings to afford any life you and your family want to live. And the good thing is, anyone can achieve; anyone means anybody. However, earning more and spending less might seem a pivotal point to put yourself on the financial freedom journey.
On the other hand, our schools, colleges, and universities don’t have a financial guidance and education system. That’s why we are facing economic issues in adult life. Indeed, money is also a necessary thing to live, as the water and food for energy. Everyone would like to pay his monthly expenditure bills. And also want to live a tension free life by achieving financial freedom.
It does not mean to become a rich man. Also, not tell to get rid f responsibilities by getting a lot of money. Financial freedom means you have the power to make your own decisions without any stress and worry. Further, it means to take a trip every year with your family to any part of your country without worrying about money.
Would you want to renew your car every year like your friend? Would you like to pay your monthly misc expenditures without any tension and stress.? Yeah, you want, I know. So, let’s start our financial freedom journey to live any life that you and your children deserve. Here are some tips that might help you.
- Where you are standing
- Set your Life Goals
- Save money
- Pay off your Debts
- Spend less and Earn More
- Start investing
- Take care of your things
Where you are standing
Without knowing where you are standing and What are your conditions, financial freedom is impossible. First, I recommend you to take a white paper in your hand and compile a list of your debts such as student loans, car loans, bank loans, credit cards, Home-equity loans, and small business loans. So, now, calculate your debts.
Afterward, now compile another list about your savings: monthly salary, retirement plan, stocks, and much more. Now calculate all of your savings and compare them with the total number of debts. If your debts are in a significant number than your savings, then don’t worry. Still, you can achieve financial freedom, and if it’s smaller, you are at the edge of the financial freedom journey.
Set Your Life Goals
After comparing your debts and savings, now you have to set your life goals. What you want to do this year, and how much debt you will pay. Moreover, how much you want to spend and how much you want to save. So, I recommend you to compile a list of your plan for the whole year.
Keep in mind your monthly net income from all sources, such as your monthly salary, income from property, and much more. So, now your main goal should be to save money and spend to fulfill your needs and save the rest. That is to say, follow the formula “pay you first.” Indeed, this is a fantastic formula and would help you to achieve financial freedom goal. Also, write down and your savings on the paper that you have made at first.
Pay your Debts
Now it’s time to compare your debts and savings again. I hope your savings have increased and reached a higher number. So, now you should pay your student loans, credit cards, and other bank loans to get rid of debts to move forward to your financial freedom goal.
I have already said that earning more and spending less might help put you on the way to financial freedom. It would be easier for you to save a lot of money to proceed to your life goals if you pay less. In contrast, if you earn less and spend more, you will fall again into the hole of debt.
From my perspective, investing means making your money double in a short time after paying your debt off and saving money. Now you have to invest and increase your income resources. Because investing might be a reason to grow your cash, I am sure you will achieve your financial freedom goal by following these tips.
Take care of your things.
Suppose you don’t care about your clothes, home, car, and other essential things. Then you have to buy or renew the stuff after a few times. And If this occurs, then it might seem challenging to proceed through your life goals.
Above all, now ask yourself, do you have the ability to follow the above tips? If yes, you can follow them; then, I guaranteed that you would achieve financial freedom in a short time. Moreover, you will take trips every year like your other friends. In the end, after getting financial freedom, then there will be no worries in your life.