Financial Freedom
Achieving financial freedom is possible, if you commit to stay disciplined with patient until you achieve it.
I have structured a series of steps for you from start to finish so you have a clear picture in your mind before you start the journey.
First of all, you need to decide where you wanna go, I mean, where are you seeing yourself after 5 years from now. For instance, you may be want to retire eary, or you want to have enough passive income just to cover your living expenses. Whatever it may be, it should be clear as water.
How much you currently make? Do you carry any debt? Do you have any asset? Why the hack I am asking you this questions?
See, tracking your current financial stats will help you understand where you stand, and gives you clear idea to improve the areas needs to be improved.
If you are struggling with your finances, that means you dont have a planned budget. I know, this very well through my experience, I was sailing in the same boat as you and struggling to make my ends meet. Creating planned budget and sticking to it saved my life and allowed me to break through the pay check to paycheck lifestyle.
It is crucial to have a budget and follow it strictly to control your spendings, you must prioritize savings. The more you save, the faster you can reach your financial independence.
Now, let us assume that you followed budget and saved up some cash, what’s next. Great, let go shopping and have fun…..
Stop…..Stop….Stop…!!!
Hold your horses, do not listen to your mind. We are talking about building emergency fund here. Aim to save for atleast 3-6 months of your living expense which can cushion you in the events of uncertain financial setbacks.
The next step is to getting your self out from the debt. You can choose from two most effective ways to clear debt from your life.
- Pay off High interest debt first and than pay the lower once.
- Pay off smaller debts first and than focus on the big one, this will motivate you
Adding an extra stream of income will boost your positive cash flow, which can cut your debt paying off time into half.
You must look for an opportunity for earning some extra cash, you will notice or you may know some people who are working two shifts or rentong out their extra bedroom or car or side hustling, those are adding extra income into their bank.
Now, you have an extra income coming in, you should upgrade your fone.
No..No..No..Big Noo.
No kidding, that’s what majority of people do and remain broke. Instead, start investing your hard earned money. As, Robert Kiosaki suggests buy assets that puts money in your pocket. Investing will get you returns and compound your income, over the period your money will work for you to get more money for you.
Putting all your eggs in one basket is definitely not an good idea, you should explore other vessels of investing, like real estate, stocks, bonds, mutual funds and diversify your investments in a way that makes you comfortable.
It is highly advisable to research carefully before investing. You may consult financial advisor who can guide you achieve your financial goals.
Financial journey needs regular monitoring the flow of your income and expenses, they are never static, so just like we steer car while driving, our finances needs review as you progress and may need some tweking along the way.
Like every other goals you have achieved in your life has came with staying disciplined, focused, and being patient. Financial freedom is not excuded from that principal, you have to keep working towards your financial goal with patient until you achieve it.
