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One of the most fascinating dreams to everyone is a kind feeling of relief while they are burdened with pile of debt and sudden expenses. This feeling is achievable thanks to financial freedom being a silver line in every cloud. Somehow it sounds unbelievable having enough savings to pursue your daydreams as well as the career you always wished for during any kind of unfortunate pandemics; so, we provide you an article to enlighten the path of achieving financial freedom in order to reach the life you always wanted.
before investment you should have financial freedom.
1. Managing as the first step
Firstly, it is needed to learn how to manage your own money. Keeping track of what you earned and what you spent is essential. Always keep it in mind that to put each month result on scale so by analyzing it you can maintain the balance of your wealth.
“The steps you take doesn’t need to be great, they just need to lead you in the right direction.” Once you start to manage your wealth, writing a list of what you have already, the debts you are under and how much you’re going to spend in the future must be written hypothetically (The future is unpredictable, so get ready for the worst outcome.).
Due to the fact that financial freedom is a long-term process saving a small amount of your money in an account may end up as your most valuable back-up that may feed all your needs, so you will be able to put your job aside and do whatever you dreamt of. Moreover, investing is a more suitable way; but be aware of what you’re investing in. Depends on the region you live in, the timeline you are limited by and of course with a bit of luck, if you seek for the most attractive asset to the eyes of people, you’ll find yourself investing in something amazingly profitable becoming your source of income that you can never imagine of.
2. Career as the main impact
The main source of your income is obviously your career. Furthermore, being smart in choosing your career has a huge impact on your life. It’s advisable to check some filters in your bucket list in order to be successful in the career you stepped in.
First of all, imagine yourself 10 years after entering your job. Pay attention about the path you are going to walk through.
Secondly, because of being desperate for reaching financial freedom weighting the potential of your career income is important.
The next subject affecting in choosing your future job is observing the situation to see how far you can reach and how much you can grow, whichever personally or professionally.
Finally, the last factor which has the most impact on your destiny is enjoying your career and feeling happy for choosing that specific job.
3. Passive incomes as an intersection
As a matter of fact, time is the most valuable precious, if your source of income is earning you money without you spending your energy, as a passive income, then you are a huge step ahead to your desirable life, cause this time, in a passive income, the one thing you surely not trading is the precious time. And as the studies show 1 dollar in passive income is equal to 10 dollars earned by a daytime job.
4. Debt as an anchor
Unlike a popular opinion saying that most of loans are worthy, it is recommended not to go under a debt unless the hard times come and you’re facing emergencies. Although we’re advising you not to go under any kind of debt, sometimes it would be wise to borrow all you can to purchase a product which is predicted that someday it would be priceless. With this said, it would be necessary to mention that by overusing this tactic, there’s no guarantee of reaching financial freedom.
And do not forget to get rid of all your debts before stepping into financial freedom’s road. This may help you to lay your financial freedom’s foundation on a solid rock.
5. Other ways to boost your income
Creating multiple sources of income is a genius move to overcome any obstacle. Writing a blog, becoming a freelancer, renting out the properties you bought and whatever are the easiest choices to have multiple sources of income. Meanwhile, in my point of view, investing is the best solution.
Even though there is an opinion investing is a risky move compared to banking your own money, looking from the outside of the box, it is noticeable that 1 dollar in 19s has totally a different value from 1 dollar in 20s, yet the value of a simple product (of course by maintaining its usage) is nearly as same as what was it was before. Hence investing is recommended to keep your own same value and as history shows there’s a chance that there will be rise in the value of what you invested in. What this paragraph implies is there’s more benefit in investing than saving money over years, cause the rise in the value of products (1$ would have been turned into 2.1$) is as triple as the value of 1 dollar (lose its buying power by 66.4 percent).
6. How to spend?
Wanting to be considered as a wealthy person, think as a minimalist. Never try to impress people and save all you can by spending on what you need as well as on the products which bring you value and joy. There is no need to have a negative opinion on money, it’s something essential like food that must be enjoyed, not wasted.
You may feel exhausted by not spending “too” much, keep that in mind to learn having short-term savings. Facing a crisis or a pandemic as well as wanting to buy an expensive product you always wished for is natural. In order to not hurt your financial freedom future, create a short-term saving being usable during any unfortunate event. If the amount was enough why not spending it on a vacation?
Although however you desire you are allowed to spend, remember to keep tracking your spending. Tools such as Mint will help you to follow your own tracks. It’s also a great tool to manage your wealth. Not only does it enlighten how much you spent, but also shows you the categories you overspent in.
Financial freedom is all a person wishes for since his 20s. It may sound arduous to achieve, it’s quite reachable though; just requires an outstanding plan, strong will, hardworking and of course a little bit of geniusity. By following the steps above you may find yourself having your desirable life right in your palms thanks to your financial freedom.