- Budgeting will help you take control of your financial situation.
- Paying off your debt will boost your savings.
- Start tracking your expenses and incomes. It will help you manage your income better.
Everyone wants to achieve freedom… who doesn’t? Talk about financial freedom and sometimes it seems like a distant dream. But not an impossibility!
So, today, on Independence Day, let’s fight as hard as our freedom fighters did, against all odds of debt and low income to win ourselves financial freedom.
What is financial freedom? It’s that feeling you’ve always wanted—of not having to worry about money. Or enjoying simple pleasures like ordering food without having to look at the price!
When you’re comfortable enough to follow your passion instead without having to worry about the income you are bringing in, you hit a new level of freedom.
And in this circumstance, an unexpected expense won’t get to you because you already have an emergency fund. Financial freedom isn’t how much money you make, it’s how much you save, your financial habits, goals and the list go on and on. If you want to change your relationship with money here are 8 sure ways on how you can achieve financial freedom.
1. Scout for your “why”
Find, look or even hunt for reasons to have your financial freedom. Dig deep and contemplate and be very specific about your answer. When you know why you want financial freedom you will push yourself harder to get there even when the journey gets rough. And it does get rough!
Your “why” is like an anchor that will hold your ground when life throws challenges at you!
2. Discover where you are right now
It takes a lot to understand where you stand financially right now. Accepting your current financial stance is even harder than it sounds, but peek into your savings and your monthly expenses every now and then.
And acknowledge where you are. It is a good starting point. Then you can look forward to where you want to be.
3. Know where your money goes
It’s as simple as tracking expenses by jotting them down in a journal. It is important! It helps you see where you spend your money most and where you need to pull back. You’ll also know what your spending pattern looks like.
4. Know what to spend on
In other words, “have a budget”. Tired of hearing that already? But the importance of this cannot be emphasized more! Now that you know where your money goes, set up a budget to control your spending habits.
The more specific your budget list is, the more effective it will be. It’
5. Get rid of your debts
Let’s be honest, debts deprive us of financial freedom. Debts swallow a large portion of our salaries.
But on the bright side, once you pay off everything, you will see your savings go up at a faster rate!
6. Frugal lifestyle all the way
Financial freedom doesn’t happen overnight, agreed! If that’s the case then a lifestyle change is a must.
Now you have an eye on where your money goes and you’ve also tracked down your expenses and have set a budget in place. SWhat next? Figure out how you can live below your means!
You don’t have to starve yourself to save money and live a frugal lifestyle. It also doesn’t mean that you don’t reward yourself every once in a while. It just means being smart and economical with your money,
7. Invest in yourself
People always overlook this one. Being a workaholic is not the only way to achieve more money, don’t be mistaken! You live in a digital age where you can learn just about anything from within the comfort of your home. We’re sure Covid-19 taught you that already.
So be wise with your time and invest in yourself. Learn a new skill and practice it over time. You will have the opportunity to monetize that skill! Because nobody gets rich watching Netflix all day!
8. Make more money
Think outside the box and create more income streams for yourself. On a serious note, do you know how many income streams millionaires have? An average of 7 income streams! Yup, you read that right. That’s why they stay rich!
It’s ok that you are having a full-time job. Accommodate a side hustle as well. Feed your bank account till it looks fat and juicy.