Financial freedom: what is it and how to achieve it
Probably you have heard of a concept called financial freedom as one of the goals that people must have in their lifetime. It is based on the idea that money is no longer a concern, people can live without thinking about paying bills or what they can do to have money at the end of the month.
First, you need to understand that financial freedom is not about becoming rich. Often, the ability to live without worrying about money is mistaken with having enough money to buy a mansion and having five luxury cars. It is not about changing drastically your lifestyle but investing in what brings value for you.
Financial freedom is about having more time for yourself and not living depending on a job interview, the ups and downs of the job market, or keeping a job because of the salary but hating every second of it. Free time has value so a person can do what they want and not having to work for money, just using all the income earned as a consequence of several actions taken ahead of time, such as investing in real estate.
Even though it is not something easy to reach, nor it is impossible. It all comes to having enough money in the bank account to live a comfortable life and having enough to cover housing, health, and food easily. Of course, to make this happen it is important to start early and establish the goal to achieve financial freedom, taking some actions to get there.
Since the first time you have had to pay for things after your paycheck, you must be aware of the way that you use money. You must be smart, think about the long term, and be mindful about the value that the money that you make has so your investments are worthy. You have to avoid spending your salary, for example, during Black Friday just because there are discounts but you don’t need none of the things you purchase.
Stick to a budget and save money
Besides having a budget, you must set goals, go through them and hold yourself accountable. The idea of having a budget is to learn how your money is being used and fix everything that we are doing wrong. That is how you can fix bad spending habits that are affecting your savings. At the end of the day, having them will allow you to invest.
Once you have enough money in your bank account, invest it in things that provide you passive income such as money received after rent or stocks. For sure, this is not as easy as it sounds but whenever you think about goals for your big investments, take into account all those things that also will give you extra money without having to work too much for them.
If you can have a side hustle, beyond your 9-5 job, try to start your business when you are young and find alternatives. Nowadays is easy to offer your skills through remote work or maybe you can do some research in your community and see what opportunities might exist that you haven’t think of yet.
All those steps do not guarantee that you are going to achieve financial freedom for sure but they will help you to live more comfortably. It also requires discipline, avoiding debt, and not let people nor emotions influence you.