First of all, what do you know about financial freedom? Have you ever thought about how to become financially independent?
Here I want to share my friend’s story
His father is a normal middle-class person and he makes good money from his job. But he has a problem, he can’t manage his expenses. So, he takes a lot of loans and pays interest every month.
After some time, he was completely out of the situation. He sold his property and cleared the debts.
Then he realized how important it is to manage the money. Now he is working for financial freedom. Achieving financial freedom is a goal for many people. Unfortunately, too many of us fail to achieve it.
What is Financial Freedom?
Financial Freedom is about a lot more than money, it’s about living a richer life.
In my view, it completely depends on you. what are your financial goals and how to achieve them?
Everyone has their own financial goals and planning. This can be achieved only when you are prepared for it. All you need is a little financial planning.
Here are the 6 things you need to do to achieve Financial Freedom
- Take the book and make a budget
- Track your income and expenses
- Clear all debts as soon as possible
- Set financial goals
- Get a personal finance advisor and start investing
- Create an additional source of income
Take The Book And Make A Budget
Yes, if you don’t want to take a book, then it is fine.
Goto google sheets and type your incomes and expenses. Note your net income(or handy). If you want to control your spending and work towards your financial goals, you need a budget.
A written, daily budget is a financial planning tool that allows you to plan how much you will spend or save each month. It also allows you to track your spending habits.
Track Your Income And Expenses
Here’s how to get started tracking your daily/ monthly expenses. It’s very helpful to keep tracking your expenses.
Spending money is very easy, and I believe most of us buying unnecessary things. Once you track your expenses you will know where it might be easiest to cutback
Here Few apps will help to track your expenses
Clear All Debts As Soon As Possible
“Better to go to bed hungry than to wake up in debt”
Yes, that’s true.
Debt is the biggest threat in your life.
Clear your car loan and credit card loan immediately because they make more money in your income.
A home loan is a very long tenure and it will take some time to clear.
Set Financial Goals
Do you know what is a financial goal?
Financial goals are goals you set that revolve around finances or money. Financial goals are targets, usually driven by specific future financial needs.
What financial goals do you have?
- Start your own company
- Going world tour
- Buy a Benz/Audi car
- Plan for early retirement
Whatever it is, Set a priority list and stick all this list in your room. Work for your financial goals.
Get A Personal Finance Advisor And Start Investing
Here I want to tell you to go for a personal financial advisor if you are not good at financial planning. If you’re not interested in meeting advisor, then improve your personal finance basics.
Read as many books as possible about financial freedom. There are so many financial instruments available to us like mutual funds, bonds, stocks, and fixed deposits.
Depends upon your requirement and time frame select any one of them.
Create An Additional Source Of Income
This is the best thing for me because if your employee(or)student you need to work 8hours/day.
How much time you need to create an additional source of income.
Here some suggestions to create an additional income source
- Start a blog/website
- Making YouTube videos
- Try affiliate marketing and sales
- Create an online course on Udemy
As we discussed earlier, it brings the option to choose a second career, spend more time with your family.
Ask yourself if you are doing everything on the list now.
Then ask if you are able to do every item on this list. Chances are your answers will be “no” then “yes.”
Your likelihood of achieving financial freedom increase dramatically if you can save money, control your credit, and minimize your debt.
You will be better able to provide for your family and yourself, not to mention the awesome feeling of being debt-free.