It starts when you’re a kid: Your family tells you that to be happy, you have to work hard, go to university, get a degree, and find a permanent job that will give you security. Does.
I followed that path most of my life: I got the title, started my career, and after a few years, I found that everyone needed a permanent job.
I work 60+ hours a week, spending more time at my desk than having fun. Most weekends are too exhausting to do anything, working day to day, just looking forward to a week off.
I don’t know about you, but 4 years ago, I decided I was enough. I can’t spend my time on salary at the end of each month.
Financial Freedom. This may sound like a good theory. But the reality is anyone can achieve it. And I mean anyone – even anyone with thousands of students like you, in thousands of loans. No matter how many financial problems you have today, there is always a way to get back in the black. Maybe trying out a budget application is your first step.
In this article, we will learn about the importance of financial freedom and share some tips on financial freedom, including some that have been effective for me.
What is Financial Freedom?
You have a reliable cash flow that allows you to live the life you want. You are not worried about how you will suddenly pay bills or expenses. And you’re not buried under the weight of debt.
It’s about accepting that you need more money to pay off debt and can increase your income – we’ll get to that in just a minute. It’s also about planning your long-term financial situation by actively saving for rain or retirement.
1. Understand Where You’re At:
You cannot achieve financial freedom without knowing your starting point. Considering how much debt you have, how much you save, and how much money you need, this can become a depressing reality. Compile a list of all your debts: hypothec, student loans, car loans, credit cards, and other loans you have remitted. Don’t forget to put money borrowed from friends or family members over the years.
Now, take a deep breath. And others. Then add all the numbers.
How much debt do you have?
If it’s a huge amount, don’t panic, I promise I’ll share several ways to pay later in this article. If it’s a small amount, congratulations! Don’t hesitate to share your financial independence tips in the comments below.
Next, see all the money you’ll save.
Compilation of your savings lists: savings accounts, stocks, company stock mill programs, company pension programs, and retirement plans. Then we’ll add repeated monthly payments like salary, extra money, etc.
Remember these numbers as we work through some tips on the next financial freedom.
2. Look at Money Positively:
Debt is certainly a bit discouraging. But remember that money is a good thing, even if it seems too cumbersome. You deserve financial freedom.
According to Ura Badas in Making Money by Jen Cinsero, people who don’t get much money often feel ashamed to make money. So the biggest obstacle many people face in earning money is feeling bad about the money. Many people feel guilty for not having it and wanting it. Sincero has said of money, “We use it every day to improve our lives, but we always focus on the negative about it.”
Money is a necessity, just like food or water. It helps you buy the items you need and live the desired life. To experience financial freedom, you need to see money as a tool to help you achieve your dreams, boost your energy, and lead a stress-free life that you can enjoy. Because if you look at money negatively, you will inadvertently destroy your chances of making and saving it.
3. Write Down Your Goals:
Why do you need money?
Do you want to eliminate debt forever? Are you desperate to avoid the 9 to 5 mill? Is there a place you’ve always wanted to visit? Do you need to save for marriage, kids, or retirement? When I achieved financial independence, it was because I tied it to an emotional goal. My goal is to get out of student loans and save for my first home. And to be honest, it was a refreshing experience to see the debt reduction and my savings grow.
I was overjoyed to see the numbers change, so I worked hard to get more money to see big changes in my finances. If I don’t emotionally bind the goal, will I achieve my goal of financial freedom? Maybe I want to get out of debt and move out of my parents’ house. Desperation inspired me on all my travels.
I lost the paper and completely forgot it. And then one day, exactly a year later, when I was living in my new home, I found it in my notebook. Of course, I have accomplished all three things. Interestingly, I also mistakenly think of those goals.
You might not finish everything you want in a month. But that’s a long time to proceed to your destination. Ensure your destination is linked to the number you want to hit. Believe it or not, you will start working without realizing that goal.
4. Track Your Spending:
An important step towards financial independence is overseeing your costs. You can use a tool like Mint, which will tell you how much money you spend, which category you spent most, how much money you have on all your accounts, and how much debt you have.
Another cool thing about Mint is that you set goals in the dashboard. You can track your destination and find out the exact month; based on how much money you have spent, you expect to reach the goal. Thus, you are responsible and remind yourself to continue investing in him.
After using Mint for a month, I saved extra money for my new wedding fundraising goal. Mint helped me focus on my goals and motivated me to build more passive income to reach my financial milestones.