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 want to build savings for retirement, new home or 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.
Paying off debt is a time-consuming process that involves eliminating the money you owe to lenders through regular payments.
The goal is to reduce financial stress and save money on interest. To achieve this, you need a strategic plan often starting with:
The Debt Snowball Method
The Debt Avalanche Method
Staying disciplined, cutting expenses, and adding extra streams of income can accelerate your debt-free journey.
You should add an extra stream of income. Meaning, find new ways to make money outside of your main job. This could include side hustles like freelancing your skills, selling products online, driving for a delivery service, or starting a small business.
Having multiple income streams can help you build savings and create more financial stability. Even a few extra hours each week can make a big difference over time.
Investing is the process of putting your money to work so you can earn more and eventually work less.
It involves some risk, but it also offers the potential for higher returns. Starting as early as possible, staying consistent, and understanding your risk tolerance are the basics of building long-term financial security through investing.
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 excluded from that, you have to keep working towards your financial goal with patient until you achieve it.
