For being a human being who doesn’t want financial freedom forever. Achieving financial freedom and breaking free from the hardest, monotonous lifestyle requires careful planning, discipline, and commitment.
There are many things to consider to get financial freedom You must follow some important setups with the help of those maybe you retire soon. Financial freedom doesn’t mean you are free from your debt, loan, and mortgage. It means you don’t have any kind of expenses and your money is working for you.
We know money works for money. If you are working for money then you will do that thing till die. You must learn how money works for us and how a single dollar work for me. It’s real financial freedom.
If you are earning money over then your expenses and fulfilling your dreams it means you are earning other wise you are not.
Table of Contents
Add up all of your debt in list
This is the first setup to get freedom from finances. Then you should calculate your overall debt on you for example you have 1000$ dollars on your credit card, 2500$ mortgage, 2000$ land from someone. Now you have around 5500$ debt on you.
Add all of the debt and try to it off, because it is your responsibility to pay it first. This is the smallest dent to getting reach as soon as. In a financial freedom life, you should pay first of all to your assets section and after that go for paid off the debt.
Debt can be any type like:
- Car Loan
- Home Loan
- Personal Loan
- Credit card debt
- Credit card debt
- Mortgage debt
- Auto loan debt
- Business loan debt
Identify where your money is going
If you don’t know where is your money has going then you should start it to track. Sometimes we can’t track our money records and money has stopped staying in our pockets. If we have started to track it then there is little possibility money will stay in our pocket.
First of all, you should track your spending: You must track your money with the help of paperwork and with some application. Write down your every credit or debit amount in your notebook. Like you spend 10$ to purchase a notebook then write it in your notebook.
You must categorize overall spending such as transport, glossary, health, bills, mortgage, etc. It’s very helpful to you because you can track which side your spending is high. While the categories your expense you must set your budget.
With your budget, you can adjust which side you are going to spend more. Budget is more important to everyone to get financial freedom.
financial freedom determine if you are making enough money
This is an important thing to know. For example, if you are earning too much and you are not able to achieve your financial goal its means you are not earning so much. If your overall expense is over then your earning means you are just doing your work for others not for your own. If your income is more than your expenses and you can achieve your financial goal its means you are earning enough.
This part is more important to everyone You must consider your all expenses and all your income. If you are not able to fulfill your dreams with your jobs it means you aren’t earning too much. You just work for feeding yourself.
Now points come to how you can save money and get financial freedom. There are a lot of methods to finding more sources of income, starting a small business, tracking your expenses, saving more money, creating a flexible budget, and increasing income.
Be brutally honest about where you can cut back and stick to your bought
You want to buy I phone and it’s not a nursery for you but the computer is more important than your phone than which thing you should buy. By sticking to your important things you will get financial freedom as soon as faster.
Sometimes many things are important to buy but at that time we have short of money. On that what we can do may be nothing. It depends on you how you can be honest where you can cut your desire and you go for important things.
Pay down your bad debt first
You must pay down your bad debt while getting financial freedom. It is like part of the huge stone in your foot. In the trading carrier, you should not trade with debt. You must create a proper plan to pay down your debt.
Financial freedom looks like a milestone if you lack knowledge. You must keep one thing in mind, Before getting financial freedom you should clear up your all debt, credits, and loans. After clearing you feel better because you got freedom form bad debt.
We know paying down the debt is hard and it takes a long to pay. But it’s not impossible to pay. For paying down the debt you should create a proper plan, Make a list of all your debts, Create a budget, Pay more than the minimum payment, Focus on paying off your highest-interest debt first, Get a side hustle, and Get help from a credit counsellor.
With that method maybe you will succeed in paying your debt first.
Build up an emergency saving
Emergency saving will help you in your bad times. Saving is a necessary part of every person. During the pandemic time, many people have lost their job and have run out the money. At that time those people had money to do business or to survive then maybe they will not come back to jobs.
Emergency savings must be in cash forms or hard money. During the pandemic time stocks, bonds, and even every business lost their value. At that time if you have money you can buy stock at a cheap price and feed up the family without taking any kind of tension.
While getting the money you must have a high-yield account and it’s different from your regular checking account. On that account, you must enable it only for an emergency time.
You must review and check your emergency fund every time. And try to consider how we can rise the fund with a fair method that doesn’t lose its value at any time even during the pandemic time. This is called financial freedom.
Invest wisely and play wisely
Investing is part of every trader, person, or everyone who knows a little bit about investing. Before investing you must have a goal in your life why are you going to invest and how you will get more return on your investment?
Everyone should start investing at a young age to get retire early with financial freedom. For this, you must do research and know how much risk is involved inside it. Research can display which company is better to get a return fast.
While investing you should start with a small quantity. Because starting with small is affordable, you lose some and also you get something. It helps a lot to learn and minimize your risk.
Many traders or investors don’t invest for a long time they just book a little bit of profit and out from the market. Now the point is Investing is for a long time while investing don’t panic to sell your assets.
Teach your children how to handle money, and stop the debt cycle
Teaching to essential part for every parent to their kids get financial freedom. You should encourage your kids to how to earn money and how money works for more money. We know it’s a little bit complicated process, but once you got success in that you will master trading or investing.
Encourage your kids to start early, this is your responsibility to encourage them to learn how money works and how to handle money. You can lead your children by example. If you want your childern to learn about money then you must have a model of your habits. With that, you can give the proper example.
Awaere your children to have their financial goal. We know without a goal dream are just dream. If you want to achieve them then you must have a financial goal. And you must be taught about debt, nowadays we need to learn about debt.
Teach your kids about debt, they must pay debt first and their bills on time. If they have habits like that, then differently they will learn about how to handle money. Definitely after learning that thing, they will not have any kind of difficulties to get financial freedom.
Take Courses for Learning Something New
Taking the course is the identification of every successful trader or investor in the market. Spause you don’t have knowledge of how to manage your money then you should take a course on it.
Never affirmed to taking high price courses just focus on the course content and your counselor counseling style. I see Many people who don’t like to take high price courses because they every time cry that the course is high price even though they don’t see what is matter provided by the counselor.
Learning financial freedom is not complicated if you have to learn zeel. Because the desire is telling you to do something new.
