We all know how it feels to be in a state of panic when you receive a bill for an unexpected car repair. What means will we use to pay for that? But imagine another scenario, what if car repairs were just a hassle? You pay the bill without a second thought, without worrying about it. You’ve lost track of it all after a week! That demonstrates how little impact it has on your financial situation. It is not an urgent matter. It’s barely noticeable!
Is that sense of relief present in you? That’s how freedom from debt feels. So, let me take you on the journey where you get financially free by 2023.
What Is Financial Freedom? Ten Tips That Will Change the Game
Financial freedom allows you to make decisions about your life without worrying too much about how they will affect your finances. Let’s put it another way!
As I often say, ‘make money your slave and do not let it become your master.’ Here are ten tips that will change the financial game for you. (Especially No. 10!)
1. Know Where You Are
It is a significant move in the right direction. Make a list of any money you borrowed from friends or family. Don’t worry if it’s a big number; I’ll show you some ways to pay it down later in this article. Congratulations if it is a small number! Next, look over all of the money you’ve saved. Make a list of everything you have saved: stocks, savings accounts, retirement plans, company stock-matching programs, and retirement plans.
2. Look at Money Positively
Debt can be discouraging. However, even though it may appear burdensome, remember that money is beneficial. You are deserving of financial independence. Both are having it, and wanting it makes many feel guilty. You will need to view money as a tool that can assist you in achieving your goals, sustaining your energy, and leading a stress-free life that you can enjoy to achieve financial freedom. Because having a negative outlook on money will subconsciously hurt your chances of getting and keeping money.
3. Enlist Your Objectives
Do you need to get away from working a 9-to-5 job? Watching my debt decrease and my savings rise was a euphoric experience. If I hadn’t attached the goal to something personal, would I have achieved my goal of financial independence? Most likely not. I wanted to leave my parents’ house and get out of debt as soon as possible.
Throughout my journey, that desperation was my motivation. Something else interesting took place. I wrote a few of my goals on a scrap piece of paper in February 2016: Earn $100,000 by selling products online, save $20,000 for a down payment, and pay off $24,000 in student loans. I ended up losing that paper and forgetting all about it. I had, indeed, completed all three tasks. You will get only some of what you want done in a month.
You will only know it once you start working toward those objectives, believe it or not. Financial independence is a million times simpler when you know exactly what you want.
4. Pay Yourself First
If you haven’t already, “pay yourself first” refers to depositing a predetermined amount of money into your savings account before making other payments, such as bills. Additionally, putting yourself first has helped many people achieve financial independence. You can also prioritise your own needs in other ways. You’ll be investing first in yourself and your future this way. You can take money out of your paycheck, so you have money left to pay your bills and other expenses.
5. Spend Less
Warren Buffett paid $31,500 for a five-bedroom house in 1958 and has stayed in it. What is his worth? an astonishing $90.3 billion.
6. Pay Off Debt
After completing their final debt payment, many people experience the same emotions: relief! Even if you have $30,000 in the bank and $50,000 in debt, you can’t say you’re financially free. You still have a $20,000 shortfall.
When you pay off a big debt, you feel a lot lighter. Your bank’s money increases after you pay off your debt. Even if you had to watch the number fall at first, it’s great to see it rise and keep you motivated to keep growing it.
7. create additional sources of income.
You will have to give up some blood, sweat, and tears to achieve financial independence. Your 9-to-5 job might need to be more. If that is the case, you need to work harder and look for other sources of income besides your current position. Some experts advocate having seven income streams. You can make a living doing the following side jobs:
8. Work as a Freelance
Work as a virtual assistant for a business owner on Upwork; earn money by taking online courses for entrepreneurs; become an Uber driver; assist with household chores on Task Rabbit; take occasional jobs on Craigslist; and more!
You’ll never feel like losing money. It’s also cool to check it regularly and see your savings increase. Instead, set a reasonable goal as your starting point, like $100 for the first month. As you earn more active or passive income, begin setting a goal of $500 per month, $500 biweekly, and so on.
9. Never Use Emergency Fund
The only uses for the emergency fund are shocking ones. For instance, a tree falling on your house, a car accident for which you have to pay out of pocket, or a trip to the hospital. You will have a lower chance of returning to where you are now if you save money for retirement and other unforeseen expenses: wishing to be financially independent.
10. Invest in Cryptocurrency
I know you were not expecting it to be this, but it is what it is. We must look into how cryptocurrency investment benefits are increasing every day. Many people have turned their luck to the skies by trading. Although it includes risk and fraud too. To protect your investment, always find trusted platforms like BitQt app for trading opportunities.
It is essential to put money aside for emergencies, retirement, and sorry to be dreadful here for your funeral, debts, and taxes in the event of your death. Okay, let’s return to that contented state. If you work a 9-to-5 job, talk to your employer about adding a retirement plan or seeing if you already get money taken out of your paycheck. Gaining financial freedom can help you take control of your life and finances, which is even more important. You can get closer to having the financial freedom you deserve if you follow the advice in this article.
Muhammad Abbas is an enthusiastic dreamer and a workaholic to achieve that. He is a passionate writer, Cricketer, researcher, and Team Leader. He has contributed to many reputed blogs and is constantly on the lookout to reach authoritative blogs around.