8 Steps To Financial Freedom

What is Financial Freedom?

Financial freedom is having the monetary stability to do what you want in life without having to worry about your bank account. Financial freedom is being able to take that amazing trip to Tahiti without worrying about not coming into the office.

It’s buying the house that your family dreams of and still has the funds to pursue your other interests.

Being financially free is all about living life on your terms.  Financial freedom means connecting to your deepest values and having enough money in the bank to support those values without having to worry about paying the bills.

Financial freedom seems like an overwhelmingly impossible task, and many people do not know where to begin.

In this article, we are going to list and explain 8 steps to financial freedom and how you can attain it with ease.

8 Steps To Financial Freedom

1. Track every expense

Tracking your spending on a regular basis can give you an accurate picture of where your money is going and where you’d like it to go instead.

How to get started tracking your monthly expenses.

  • Check your account statements
  • Categorize your expenses
  • Use a budgeting or expense-tracking app
  • Explore other expense trackers
  • Identify room for change

2. Cut unnecessary expenses

One of the more difficult aspects of personal finance is figuring out the best way to utilize our money. For the Millennial generation, especially, it’s tough to figure out how to save big on a small budget.

7 Simple Ways to cut Unnecessary expenses

  • Put any Bonuses Into Savings
  • Make Meals at Home
  • Make a Grocery List Before Going to the Store
  • Set a Shopping Limit
  • Clean out Your Closet and Sell What You Can
  • Cancel Club Memberships or Entertainment Bills
  • Embrace DIY Projects

3. Educate yourself

What it means to educate yourself is a matter of having a series of habits that promote how to educate yourself. Going into finer details, these habits comprise a system to help you stay up on relevant topics that you are passionate about.

Since the internet is the best way to gather information, it’s totally possible to self-educate ourselves without going to college.

  Here are six ways to educate yourself

  • Stay Current on Industry News
  • Sign Up for Online Courses
  • Get a Mentor
  • Take Up an Arts Class
  • Start Journalling
  • Always Be Looking Stuff Up

4. Build income streams

By having money coming in from multiple sources, entrepreneurs can make sure the money never stops rolling in.

Income rolling in from all over the place sounds great, right? Unfortunately, it’s hard enough for some people to figure out how to create a single income stream, let alone more than one.

I felt the same way when I started learning about money a long time ago. I clearly remember reading Rich Dad, Poor Dad for the first time, then thinking how awesome it would be to become wealthy one day.

Maybe you need extra money to pay down debt. Or, perhaps you want to save up to buy a new home. Whatever your goals, having more money can help you get there faster. And, who knows? Your “side hustle” may even become your full-time job one day.

 Check out these eight extra income ideas that work

  • Start a blog
  • Take paid surveys
  • Investing for smart returns
  • Become a freelance writer
  • Market your online skills on Fiverr
  • Become a virtual assistant
  • Start a home-based business
  • Create an online course

 

5. Save money – 8 Steps To Financial Freedom

We all want to save money in one way or the other. And whether it’s by denying yourself that $5 coffee once a week or putting off an expensive family vacation, everyone has their own way to save.

t’s important to set aside money for rainy days, retirement, and (sorry to be morbid here) in case you die to help ensure your family doesn’t drown paying for your funeral, debts, and taxes. Okay, now let’s get back to that happy place.

Best 5 ways to save money in your day-to-day life.

  • First Eliminate Your Debt
  • Set Savings Goals
  • Pay Yourself First
  • Spend to Save
  • Utility Savings

6. Invest your money wisely

Many people mistakenly believe that investing money and building wealth is a complicated game that’s completely out of their reach. While you can make investing complex, I don’t recommend it because using a simple strategy works just as well.

No matter if you’re starting to invest for the first time or have been at it for decades, you can grow your net worth over time using simple principles and habits.

7 simple principles to save and invest money wisely

  • Start investing as soon as you begin earning
  • Use automation to stay disciplined
  • Build savings for short-term goals and emergencies
  • Invest money to accomplish long-term goals
  • Leverage tax-advantaged accounts for faster results
  • Choose investments based on your “horizon”
  • Avoid investment funds with high fees

7. Reinvest

what is reinvestment? is simply putting (the profit on a previous investment) back into the same scheme.

“the enterprise had been expanded by reinvesting profits”

8. Live life with passive income

“Making money while you sleep” has a nice ring to it, doesn’t it? After all one of the goals of financial independence is to build wealth that doesn’t eat up your time, so you can enjoy life and do the things you choose to do.

The truth is that building a passive income stream usually isn’t passive at first. It requires time, money, skills, or all three. But where do you start? The first step is to just build a small nest egg savings account that you can use for later. We’ll come back to this.

Passive income is a long-term choice that requires short-term tradeoffs. If you’re willing to commit your resources to the steps and ideas below, you could be earning effortlessly for years to come.

You just need to know where to start and decide what resources you’re willing to expend for your passive income ideas to take flight.

To know more about passive income businesses read this article Top Passive Income Ideas.

Conclusion

Financial freedom can help you take ownership of your finances and, more importantly, your life. It’s about living within your means, being a bit frugal, and making sure that money is spent on things you really need like food, shelter, and yup even vacations (relaxation is important too, you know). By following the financial freedom tips in this article, you’ll inch closer to achieving the financial freedom you deserve.

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