Having enough cash for savings and investments to cater to one’s lifestyle and that of their family is a goal many yearn to achieve. Unfortunately, many fall far short of financial freedom.
Before striving for financial freedom, we must ensure we are financially independent. Someone financially independent has sufficient income, extra savings, and investments to live comfortably for life and meet all of their obligations without relying on anyone.
The idea of financial freedom is to stop trading your time for money. This dream is achievable for anyone who wants to stop the 9-5 work schedule and stop living paycheck to paycheck.
Your dreams could be a dream home, to travel the world, while to others, leaving a legacy behind. The thought of this probably scares you, and you might be wondering how you even achieve that, but Ellen Johnson Sirleaf said, “If your dreams don’t scare you, then they are not big enough.”
Although this does not happen overnight, it is still achievable.
Colin Powel once said, “A dream doesn’t become a reality through magic; it takes sweat, determination, and hard work.”
Warren Buffet said, ” If you don’t find a way to make money as you sleep, you will work until the day you die.” I wouldn’t say I like the sound of this, but honestly, there are facts to this statement. The question is, how do you make your money work for you?
Here is how to attain financial freedom
Set clear goals.
The more specific your goals, the higher the chances of achieving them. Outline what you need to accomplish in order of priority and set clear timelines to help you succeed.
Make a reasonable monthly budget.
This will restrict the temptation to splurge your money on unnecessary things. You also don’t want to limit your living just because you are saving.
Reduce debt.
Avoid debt that increases your monthly expenses. Although debt can certainly be a good tool for a future goal of building wealth, it is important to make strategic moves when doing so.
Create a savings plan.
Before you can get your money to do other things, ensure you have put aside some savings.
Start investing as early as now.
Be sure to get more money to invest. Start small with the little you have, and it will go a long way. There’s magic in compounding because that will exponentially grow your money.
Minimize costs as you maximize savings.
If you need to bargain for goods and services, please do. You will be shocked at how much you can save.
Invest in financial knowledge.
Understanding financial literacy is the beginning of knowing how to invest, save, spend, earn, borrow, multiply and even protect your money. It’s the best way to avoid losing money after making it very fast.
Explore new income streams.
Invest in money-making assets such as real estate, cars, and land. They can bring some income into your account if managed well. Start your own business if you can. Going into business can have its challenges, but it certainly can build a successful enterprise that can generate wealth and, in turn, help you achieve financial freedom.
Consider side hustles.
Small work endeavors can be a source of income, no matter how small.
Live within your means.
Develop a good mindset that adapts to a good life that requires you to spend less based on the things you need.
Take care of yourself.
It doesn’t make sense to make all the money you want and neglect your health. Then how will you enjoy it if you’re not alive or in good health condition? Poor health harms your financial health.
Seek higher wages.
It’s important to grow career-wise. Aim for jobs that allow you to save enough for retirement and still pursue your passions. Earning more can help you save more for the future.
