How to Achieve Financial Freedom

Financial freedom is much more than making money or being rich. It is a financial state wherein an individual is fully aware of what he has and what he hasn’t.

Financial freedom is attained when an individual is aware of what he has, what he doesn’t have What he is capable of buying, and what he shouldn’t be getting at the time being.

Businessman working with laptop on building steps

Technically as stated in, being financially independent means that your assets exceed your expenses. It means that one doesn’t have to break one’s back to obtain the basic needs such as water, food, shelter, and clothing.

Since the state of being rich is relative, financial freedom could also be a relative term. A rich man might have more money than a poor man, but it doesn’t necessarily imply that a rich man is financially free.

A rich man’s lifestyle might exceed the amount of money he produces. This type of lifestyle is pretty common nowadays, wherein money simply comes and goes. One can achieve financial freedom, even though one doesn’t have the glitz and that glam that is usually associated with being rich.

How can you achieve financial freedom?

  1. Budget

Again, financial freedom entails being aware of your financial status. Hence, the first step to gaining that independence is actually knowing the finances in the house.

List down your monthly expenses. If necessary, cut down some expenses.

Ask yourself if you really need to buy that new handbag or that new pair of shoes. If the new iPhone is out, would it be wise to buy it, even though you still have a perfectly operational phone?

  1. Invest

Invest for your future or for your family’s. It might seem like it’s just spending a lot of today, but really, your investments could save you a whole lot of money in the long run. Think of an educational plan, a health plan, travel insurance and etc.

If you want to be settled in and trouble-free when you retire, then you might as well invest your money when you’re young. Nevertheless, retired citizens can still find a bunch of ways to invest their savings. But you don’t really want to wait a few years to actually realize that you should’ve listened to your younger self.

  1. Work

If you want financial freedom, then you have got to work diligently. If you’re tired of your 8-hour daily routine at work, then maybe you should consider quitting. As they say, “do what you love and you will never have to work a day in your life.”

If you can’t possibly think of anything else to do, then ask yourself why you decided to take on that job in the first place. Rekindle that flame.

  1. Minimize

As mentioned, you should cut down some expenses. Prioritize the needs rather than your wants.

Aside from this, you should minimize your worries for your future. Don’t forget to live in the present.

If things don’t go your way, then don’t worry about it. Learn from your mistakes.

Free yourself from inhibitions, and do your best. If you want to attain financial freedom, it is best if you remember the four key details listed above.