Financial freedom is when you have total control over your finances. You are free to make decisions based on your aspirations and preferences rather than being constrained by the price of goods. It take financial discipline to hit your financial goals, make progress towards a more secure financial future, establish a budget, accumulate savings and an emergency fund, and more.
Unfortunately, financial independence eludes a lot of people. Overspending-related debt accumulation is a persistent obstacle that prevents people from achieving their objectives, even in the absence of sporadic financial catastrophes.
Make life goals
What is financial freedom? All of us want it in general, but that is a very nebulous objective. You must be specific about the amounts and deadlines. The more specific your goals, the more likely you are to achieve them. Identify things you need and things you want the and the deadlines.
Make your budget
Either formal job or informal job, make a budget that best suits you. You may decided to save a certain amount either per day, weekly or even monthly. Understand your monthly budget and stick to it as this helps to make sure that the bills and savings are on track and to avoid overspending temptation.
Pay off debts
Make a point of paying off your debts. Debts can be toxic in wealth creation, start paying high interest loans. Low interest loans like student loans can be paid later but paying them on time is still vital in you journey to financial freedom.
Eliminate unnecessary expenses
Identify the recurrent expenses, that you don’t really need or use. Every subscription and membership you have. These can range from streaming services to gym memberships and subscription boxes. Take note of the cost and frequency with which you have used each service in the last few months. If you have not used something in a while, consider putting it on hold or canceling it entirely. This will free up funds for you to put into savings and begin earning interest.
Financial education
knowledgeable is your best defence against a scammer. Read informative blogs like this one and make sure your tax returns are paid on time to avoid fines and penalties. Stay informed about stock market trends and financial news, and do not be afraid to modify your investment portfolio as necessary, seek financial advisory to help stay on the right path.
Start investing
When you reach a point where you have accumulated a respectable amount of wealth — either cash or assets — you can invest based on your objectives, but you should always seek professional advice. Peter Lynch, the American investor and author, once said: “In the long run, it’s not just how much money you make that will determine your future prosperity. It’s how much of that money you put to work by saving it and investing it.”
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