Financial freedom, What is it?
Let’s talk about Financial Freedom or Financial Independence.
What is Financial freedom? Financial freedom is a term that is used to describe life when you have enough money saved/invested to cover your living expenses without having to work anymore. This means you can live your life with the freedom of choice. Choosing when and where you work, or even if you want to work at all.
What does it take to achieve financial freedom? There are a few simple steps to take to get there:
- Set yourself goals: The first step is to find your why? Do you want to travel? To retire early? Follow your passion? Start a business? Knowing the end goal helps define the steps you need to take and also to set a fire inside yourself to help push you through rocky times.
- Know your Expenses: Once you know how much it costs you to cover your living expenses. This includes everything from housing, food, healthcare and even entertainment.
- Live Below your means: If you earn $70,000 a year and spend $68,000 you’re never going to achieve your goals, but making $75,000 a year and only spending $55- 60,000. Means you are able to save and invest your money and make it work for you. So scale back your expenses and increase your income. Prioritise your savings and investing goals. That is why having a reason to do this is so important.
- Start Saving: to achieve financial freedom, You need to save and invest your money aggressively each month. The faster you save, the faster you reach your goals.
- Pay off all your Debt: Debt is a huge obstacle to your financial goals. HIgh Interest debt, such as credit cards and personal loans, should be paid off as quickly as possible. Once its gone you can put that money towards your savings and investing goals.
- Invest your money: Obviously, you can’t just save your way to financial freedom, you also need to invest it. This means your money will grow over time. Investing in things like Bonds, Stocks, Mutual funds and Real Estate.
Achieving FInancial Freedom isn’t easy or quick, it takes discipline, but it is a relatively simple concept. Make a plan to achieve your financial goals and live the life you want.
Overall, achieving financial independence takes time, effort, and discipline. But by following these steps, you can create a plan to achieve your financial goals and live life on your own terms.
The information contained on this Website and the resources available for download through this website is not intended as, and shall not be understood or construed as, financial advice. I am not an attorney, accountant or financial advisor, nor am I holding myself out to be, and the information contained on this Website is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation.
This website is simply to document my journey to financial freedom.