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Achieving Financial Freedom

Work brings you money –> money buys you assets –> Assets bring you wealth –> Wealth buys you freedom

Waking up without an alarm, without any rush, planning the day out as you please, working on your own terms, taking a break whenever you feel like it, exercising whenever you want, spending time with family and friends, living each day on your own terms without having to worry about money, that is true freedom.

Financial freedom gives you that certainty, the assurance to be able to provide for yourself and everyone you love.

Achieving financial freedom is not easy, you need to be prepared for it.

How do you achieve financial freedom?

It is a common misconception that you have to be born into a rich family to be financially free. You can attain financial freedom by making smart moves at the right times. As financial freedom is a significant milestone, it takes some time to achieve. To do that, you have to save and invest as much as you can. Here are two main things you need to focus on to achieve financial freedom.

  1. Financial planning
  2. Investing

Financial planning

First step is to understand where you are at, how much debt you have, how much savings you have and how much money do you need to achieve your financial goals.

Debt is one of the main hindrances to achieving your financial goals, becoming debt free is not easy but it is very much possible if you have a plan. Spend your money carefully, there are various apps available to help you track your payments and also set goals, you can keep a track of these goals and be able to estimate how long it will take to achieve each goal. It will help you stay focused. Once you start tracking your expenses, you will be able to manage your money more effectively.

There is a famous quote that says “Money saved is money earned” 

By spending less, two things work in your favour. One, you’ll have more money to put aside for your financial freedom. Two, you’ll learn that you actually need a lot less stuff to survive, which also helps you put aside more money.

Once you start managing your money efficiently, list down your financial goals and start to plan on how to achieve them.

“If you buy things you don’t need, soon you will have to sell things you need!” – Warren Buffett

If you’re serious about financial freedom, you’ve got to sacrifice some blood, sweat, and tears.

Create additional source of income, you can look at your sources of income in two ways: active income (trading time for money) or passive income (money that can keep coming in, even while you sleep).

(We will cover financial planning in detail on another article)

 

Investing

One of the best ways to achieve financial freedom is by investing your money in schemes, shares, property, etc. The earlier you start and the more you invest, the faster you will gain financial freedom.

Investing in not an easy task, it has its risks but it is also rewarding. Commit to a timeline. Give your money time to grow and compound. Determine your risk tolerance, then pick the types of investments that match it.

(We will cover Investing in detail on another article)

 

Bottomline

Financial freedom sets you free for life, achieving it is not easy but it is very much possible, stay focused, acquire knowledge, keep on hustling.

Wealth is the ability to fully experience life.” –Henry David Thoreau