FINANCIAL FREEDOM: 8 STEPS TO ACHIEVE FINANCIAL FREEDOM
Written by: David April 17, 2022.
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“Do you want to know how to achieve financial freedom?”
If you’ve ever dreamed of being financially free, you must know it’s possible. It might not happen overnight or the way that you think it will happen, but it is possible. If you want to achieve financial freedom, then there are some things that you need to do. In this post, we’ll talk about the steps to attain financial freedom and how you can use these steps to make your dreams a reality.
Table of Contents
WHAT IS FINANCIAL FREEDOM?
Financial freedom is when you have enough money, time, and resources to live your dream life and fulfill your heart’s desires. To become financially free and independent you should focus more on passive income and wealth. When you can cover your expenses and lifestyle without a 9-5 job or being dependent on others you are deemed financially free.
8 steps to achieve financial freedom
1. Build passive income streams.
In order to achieve financial freedom, it is essential to build passive income streams. Passive income refers to money you make without working actively for it. For example, if you own a rental property and collect rent from tenants monthly, this would be considered passive income.
In contrast, earned income is money you earn through your job or other means of employment. It’s important to note that while work provides an opportunity for earned income, it does not guarantee any financial security in the future.
Where will you get paid next month if your job gets eliminated or outsourced tomorrow? Or six months from now? That’s why building a nest egg through investments can help protect against loss of employment—and give you more time and flexibility in pursuing other passions outside of work.
Below are some ways to earn in passive income
- Write an e-book.
- Rental income.
- Affiliate marketing.
- Flip retail products.
- Sell photography online
- Create a course: Monetize your knowledge and skills on platforms like Shopify, udemy, Coursera,
- Asset building. This means acquiring an asset that earns money passively over time.
2. Stop living on borrowed money
We live in a society that has programmed us to be dependent on the system or someone else for our needs. While borrowing makes us feel good at that moment, in the long run, it doesn’t work to our advantage. “THE SYSTEM IS PROGRAMMED” always remember this phrase.
In this time we rely on the banking system and government for our monetary and fiscal needs, this happens as a result of our geographical setting. Take for example the banking system, whenever you sign up or open a new bank account. The bank always recommends and upsells other packages like credit card loans. While this might seem like quick money for you, in the long run, it benefits the banks better.
Major factors like transaction fees, interest rate, inflation, and taxation put the banks, government institutions, and the loan company’s in a favorable position to cash out better than you on that particular offer. let’s not even bother to discuss what happens when you can’t meet up with the payment due date.
You stand a much better chance making profitable investments with your savings and operating off the principle of compound interest.
Below are some tips to help you.
- Stop living on borrowed money.
- Stop using credit cards.
- Stop using payday loans.
- Stop using other forms of credit, like auto or personal loans, lines of credit and home equity loans/lines, student loans (unless you’re in school), and even small business loans if you don’t have a business plan or a way to pay it back.
- If you have to borrow money for a large purchase (like a car or house), make sure it’s a long-term loan so you can pay it off over time like monthly payment, or without adding too much interest to what you owe (don’t take out another mortgage unless necessary).
You may consider paying cash for things when possible and saving up for larger purchases instead of taking out another loan. This help avoid adding more debt onto your current balance sheet, which will cause more stress later down the road when payments are due again!
3. Cut your expenses.
Cutting expenses is a great way to save money. It can be difficult to cut expenses, but the first step is acknowledging that you need to. Once you realize that your current lifestyle is not sustainable and that it’s time for some cost-cutting measures, it gets easier.
When you cut your expenses, you’ll have more money left at the end of each month. Meaning that instead of spending all of your income on bills or groceries every month like many people do (i.e. living paycheck-to-paycheck), now there’s some amount left over in savings for emergencies or unexpected costs like car repairs or medical bills.
You don’t need much, just $500 saved in an emergency fund will be enough to keep most people from debt during a crisis. A few thousand dollars could help with other significant investments like buying real estate or starting a business.
Below are the best apps to help you budget.
4. Live below your means
Living below your means is a crucial part of achieving financial freedom. If you live on less than you earn, and spend less than what’s in your bank account, then there will always be excess money in the bank that will be available for investment. This is the core principle behind saving and investing.
On your journey towards financial freedom, a budget and making profitable investments will help you. Stop trying to impress people or live up to society’s expectations.
It is necessary to identify your needs and wants. Cut out wants and unnecessary spending like eating out and fast foods. Or buying things you want but really don’t need.
It’s also advisable to earn extra money where applicable.
Below are some tips to help you live below your means
- Create a budget
- Reduce membership programs
- Save using the 50/50 rule
- Track your spending.
- Don’t rely on credit cards
- Increase your income and reduce your expenses
5. Avoid lifestyle inflation
Another way to achieve financial freedom is to avoid lifestyle inflation. Lifestyle inflation is when you spend more than your income. This means that even though you’re earning more money, you still feel like you’re not getting ahead and yearning for things just out of reach.
It might be the latest gadget or car, but the goal is the same, to keep up with others around you or feel a sense of superiority.
Lifestyle inflation can have an impact on many aspects of your life:
- Finances — A good way to measure whether or not lifestyle inflation has affected your finances is by calculating how much debt you have compared with how much money comes in each month.
If it’s equal to or greater than your income (and worse if it’s higher), then chances are there’s an issue with overspending that needs immediate attention before any other goals can be met—like saving up for retirement!
- Relationships — Two types of relationships will be negatively influenced by lifestyle inflation, personal and professional ones, both must be considered equally important because they contribute similarly towards overall happiness.”
6. Create multiple sources of income
There are many ways to create multiple sources of income, it could be from your knowledge, job and side hustles. One of the major requirements on your financial freedom journey is to believe in yourself and your skills. Everyone has a skill or talent that you do easily, to you it’s normal but guess what, There is someone out there who will pay whatever amount to learn what you know or pay for your services.
Monetize your knowledge and skills and if you aren’t sure about them, then build and develop more skills.
You could also be a content creator and market your services on social media platforms and freelance websites online
- Sell your skills.
- Take on side projects.
- Become an entrepreneur or consultant in your field of expertise.
- Allow others to use your time and resources, This invoves selling your own products and ideas on platforms
7. Invest in yourself and your future.
Investing in yourself can help you achieve financial freedom. You can invest in your education, skills, knowledge, health, well-being, relationships, and community.
You have to be willing to take some risks if you want to be successful. So if you’re looking for financial freedom, then risk investing in yourself.
To be financially free, you have to make it happen for yourself. You can’t just sit back and let things work themselves out, because that’s not how life works. The same goes for your finances, if you want financial freedom, it’s up to you to take responsibility for where your money is going and what kind of lifestyle choices are being made.
The first step toward achieving financial freedom is understanding that sacrifices are involved in getting there—and they aren’t easy. It can be tempting when we’re young adults just starting in our careers or new at saving money (or both) to spend everything we have on experiences or material goods instead of saving up an emergency fund or investing in the stock market. But if we don’t set ourselves up with a plan first, those temptations will win every time.
We need a good plan before we start putting our money into savings accounts and 401Ks so that we know exactly what kind of lifestyle choices our hard work has earned us over time–and whether or not those choices still fit with our goals as adults who now understand more about what really matters in life than when they were younger.
8. Self-education and online courses.
The last and most important method we will be looking at is Self-education. All other ways to financial freedom we covered in this article involve a level of Self education.
Remember your time is your greatest asset and you’re your most valuable investment
Self-education helps you to learn new skills and habits that will continually generate passive income for you. If you are really serious about becoming financially free you have to realize you can no longer remain the same person you used to be, there will be a lot of Self-development, improvement, new habits as well as skills you have to adopt.
Luckily enough for you, we live in the digital age where a lot of information and skills needed for you to become financially independent have already been outlined for you to watch. You can learn and develop skills by subscribing to online courses on reputable platforms like Udemy, Coursera, teachable, and the likes
On the internet, you can learn and receive guidance from anything you could possibly think, even about “financial freedom” itself. There are a lot of gurus and mentors out there who have achieved financial freedom and will give you everything you need to become financially free including tested secrets and proven investment strategies that work for them.
Luckily enough for you, this will save you time, money, and energy making your road to financial freedom easy and worth it. This works irrespective of your level in life.
Of all the financial freedom mentors out there, the best we can recommend for you is yours truly, our very own brand online course “FINANCIAL FREEDOM”.
Our financial freedom program is uniquely different and the best in the sense that we provide you with secrets not shared by other gurus. Our program is divided into two sections.
- We cover all the key secrets and investment strategies given by other top gurus and in addition
- We provide and teach you how to tap into the foundation of all wealth and riches, which is the manifestation of secrets (Self-knowledge) and Self-development strategies.
This is your blueprint on your road to financial freedom which helps you to manifest and live the life of your dreams. With the right foundation set in place, you’re guaranteed to remain a multi-millionaire irrespective of the obstacles you face along your financial freedom journey.
Check out the 100 most powerful financial freedom quotes of all time: FINANCIAL FREEDOM QUOTES
We highly recommend this powerful article on financial freedom by: FINANCE STRATEGIST
CONCLUSION
We are positive that this article has helped you somehow and will motivate you to start working towards your own financial freedom. Ultimately, the most effective way to achieve financial freedom is through Self education.
All the information in this article is putting you on the right track but if you are interested in taking a closer step toward financial freedom you can click the link below to check out our financial freedom program. We update our course contents regularly and you’re guaranteed to live the life of your dreams.
Financial freedom program: FINANCIAL FREEDOM
FINANCIAL FREEDOM PROGRAM
Article written by David Osifo-whiskey, billion dollar CEO, Conscious identity. A brand dedicated to Self-enlightenment, development and financial freedom.
Email us: dmconsciousid@gmail.com
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