“Do you wish to Elevate your financial journey and live in luxury? Unlock five steps that will set your finances to reach its peak.”
We all know the feeling. We have all felt it at some point in our lives. The panic that makes your heart race when you see the bill for an unexpected service charge increment or a car repair.
The first question that comes to mind is: How do I pay? Where do I get the money?
But imagine if a service charge increment or a car repair bill was just a convenience. Instead of panicking and looking for a money lender to pay the bills, you pay them without thinking twice, and you do not have to break your bank.
A week later, you have forgotten it even happened! That is what financial freedom feels like. It explains how little your bills affect your financial situation. It is not an emergency. Do you feel that sense of relief? If you do not, this article is for you. Keep Reading!
What is Financial Freedom?
Financial freedom is a state where you have complete control over your finances, allowing you to make choices based on your desires and goals rather than being limited by how much things cost.
Financial freedom is having enough from your income after removing savings to cover your living expenses. It is not about being rich and having a lot of money but having enough to cover your expenses.
Financial freedom means you get to make life decisions without being stressed about the financial fallout of those decisions. That is because you have built yourself over time financially for whatever life throws your way. You have no debt, you have money in the bank, and you are investing in the future.
How to Unlock Financial Freedom in 5 Steps
Achieving financial freedom does come at a cost. It requires discipline, careful planning, and making intelligent financial decisions daily. It may even involve sacrifices in the short term to ensure long-term financial stability.
Start With Budgeting
Having a plan for your money is the first step to financial freedom. Trust me; you will find it hard to get on top if you don’t have a plan for your money.
Instead, at the month’s end, you ask delusional questions. Where did my money go? What did I spend my money on? That is not financial independence; that is a financial disaster.
Financial freedom is not possible if you do not have plans for your money or live on a budget.
You are the determinant of where your money goes; to attain financial freedom, your money must go to the right place. Give every penny you make an assignment before the month begins and track your spending throughout the month. Budgeting is essential to get your finances on the right path.
Have a Goal and Start Investing
Investing is a great way to put your money to work and potentially build wealth. Start investments as early as possible, even if they are in small amounts, and let the power of compounding show its magic.
You can start investing from how much you get from your job. It does not have to be in millions; if you can afford millions, that is also great. The main goal is to invest.
To attain financial freedom, a goal-based approach helps you calculate how much money should go towards each investment while creating your monthly budget. This can save you from unnecessary financial stress and tons of money. Be specific and make measurable goals.
Save For Emergencies
Life happens, and when it does, you must be prepared. If you lost your job today, would your emergency account cover your living expenses for the next three months? If your answer is No, you need to work on your emergency savings.
Live Below Your Means
This simply means you must live on less than you make; that is your income. This goes right along with having a budget in place. To reach financial freedom, you must be self-disciplined and ready to say no to impulsive spending. It would be best if you started spending with a purpose, which is attaining financial freedom.
Make Your Health a Priority
A healthy and intentional diet and regular exercise are good for your health and bank account. You must work to make an income to save from. Also, poor health means more medical bills, which could cost your financial freedom if you do nothing to improve.
Conclusion
Financial freedom can be attained by cultivating good money habits in your day-to-day life.
When you have enough income streams to cover your living expenses and any additional expenses you desire without relying on your job or career.
This means you have the liberty to work or not work, pursue your passions, dreams, and interests, travel, and enjoy life on your terms. Only then have you attained financial freedom.