There isn’t a word that is more likely to instigate a reaction in people and for good reason. We all depend on it, yet having enough is a cause for constant concern for many around the globe.
But wouldn’t it be nice to be rid of the constant worry that engulfs us when it comes to how much we have in our personal coffers? The term when this is achieved is financial freedom, and more and more people are cottoning on to the fact being financially free may be closer to their reach than they expected.
Find out how this can be possible for you in this article!
Analyze Where You Are
It is easy to consider planning for financial freedom to be about finding ways to increase your income, but just as important is managing what you already have. However, the reality is that many people don’t have a clear idea of what is coming in or going out. So the first step to becoming financially free is having a firm understanding of your financial health.
Fortunately, it couldn’t be simpler. All you need is a pen and a piece of paper. On it write three columns.
The first, and the most depressing, is for your debts. Everything from your mortgage, loans and everything in between should be laid bare. Next, it’s your monthly expenses. These are your bills, rent, subscriptions, and regular running costs like transportation.
The last should be for how much money you have coming in, through work or any investments.
Doing this alone is enough for you to feel in control of your future. For example, if your debts are many, having a clear idea can be used to hire a debt counsellor. They could talk you through understanding debt review and getting you out of any potential holes, leaving you ready to steer your financial ship in any direction you wish.
Set Your Goals
The next step in being financially free is setting a clear goal for yourself. We can’t stress how important this is for you to continue to be motivated and achieve success.
Well for many, being financially free is a buzzword without a concrete end destination. This can lead to feelings of disappointment when in reality you are well on your way to getting where you need to go.
So whether it is having the freedom to not have to work, or taking off the shackles of your debts, take the time to figure out your personal finance goals. These aren’t the same for everyone.
An old British saying goes “look after the pennies and the pounds will look after themselves”. While we know this to be true, a staggering 20% of Americans don’t save anything, with this trend followed in many places around the world.
Make no mistake, it is impossible to achieve financial freedom if you don’t expect to be blindsided financially. It could be anything from your car breaking down, unexpected medical bills, losing your job, or more, but they will happen.
The only way to prevent these things from knocking the wind out of your sails is by having the habit of paying yourself FIRST when you receive your check.
Doing so also gives you the added benefit of providing you with all-important peace of mind as you see your nest egg increase. A good target is to have up to 3 to 6 months’ salary in savings.
You Can Be Financially Free
It will take time, but being financially free is a target that is attainable if you work towards it. Will it happen for you? We hope our tips will help you on your way to achieving your goals.
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