10 Simple Steps on How to Achieve Financial Freedom

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How to Achieve Financial Freedom

For age-long, financial freedom has been the desire and need of everyone who has attained the level of goal pursuit. Humans’ wants and needs are limitless and as each day passes so is the craving to satisfy those desires. To achieve financial freedom means a condition whereby an individual’s monetary income is higher than expenditure without being dependent on anyone for assistance.

A situation where an individual can pay all his bills, lend out to others, give freely without requesting payment and still have much to contend with. Without any diabolic means for achievement but through hard work and self-motivation.

The longing to solve human’s never-ending needs has brought about the quest for financial independence, and the need to satisfy the hunger for acquisition. Therefore, an individual striving to become self-sufficient of monetary issues needs to take some steps one after the other. In a gradual but determined process, such as:

Establish a passive means of earnings

Establish a reliable investment

Save as you earn

Do not chase dreams but make dreams happen

Focus more on significances

Be mindful of your debts

Spend wisely

Manage your inventory periodically

Be mindful of your lending’

Have a determined goal pursuit

Although, clear observation of how people seek financial income indicates that out of 100% in any given population. 80 of them are struggling to acquire financial liberty while the remaining 20 are just content with whatever income they earn.

There are no negative aspects or malevolence consequences that will result in trying to achieve financial freedom. It is absolutely a good wish which only falls as a fortune to a few people. But then, we can still strive with the following steps:  

Establish a passive means of earnings

Striving to be free of financial worries through establishing a passive income is one great step to veering into financial freedom. Again, it is a big way to obtain financial security. All that is needful of you is to search for any business that you can involve yourself in while still managing your primary source of income. Any business that comes, as a side hustle is an example of passive income, any business that you can engage without interfering with your main source of income is also a passive earning.

It is usually not possible to gain total freedom from monetary issues while relying on just one source of income. No matter the kind of business, you operate and how large the volume is. Although, you can be able to achieve more if you split the largeness to have them as branches. Even with this, there is a simple difference between a business establishment that yields a random income and that of a passive income. Although the duo has their respective merits and demerits

Passive income is a way of assuring yourself of regular earnings no matter how little it comes so long it comes regularly. Your passive income does not have to be your main means of revenue. In most cases, you may not need to be a full participant. Initially, it might require your great effort to establish but once on the track and the income is gradually flowing, all you need is maintenance.

Establish a reliable investment

The thought of making investments gives you the idea of using money to acquire money. In other words, you assign money to a particular thing and hope for a future profit through an increase in value. You can take a step towards attaining financial freedom by establishing one or two kinds of investments. It all depends on your ability but it is very necessary not to gather all your eggs in one basket.

Investment is quite different from passive income, although they almost look similar. Passive income is earnings that come almost on daily basis either in bits or in bulk even without visiting the spot of the earnings. While investments earnings come once in a while but always in bulk. You can invest in landed property, stocks, bonds, securities, Bank savings, or fixed deposits.  As you make investments, there is every possibility that you will keep managing your primary business.

Save as you earn

It might not be easy for you to save especially if you are having so many problems seeking attention. However, if you keep solving those problems you will end up not saving anything at all because human needs are boundless.

Now for you to attain your savings goal, apportion some of the earnings you acquire on each particular period towards your savings. While some other earnings go towards solving those pressing needs, solve them according to their order of importance. You need to save for future emergencies and other unavoidable circumstances. You also need to save to grow your financial and business capacity.

Do not chase dreams but make dreams happen

It is all about your ability to become active and responsive to activities. You cannot plan and expect things to take shape automatically without your human effort. You have to make your dreams come true. Seek the means of getting things done. Examine yourself and see where you are lacking and try to fill the potholes. Do things in the right possible way.

Focus more on significances

Many a time in an individual’s quest for financial freedom, he becomes obscure as to what plan to pursue first. He becomes more confused when so many ideas of what to do flood his mind but has a limited means of establishing those plans. In this kind of situation, the best solution is to make a complete list of those plans and then take them up according to the most important and easily achievable ones.

For instance, he might have plans on investing in a landed property, rental properties, opening a new branch of his business, and investing in a cryptocurrency. All this is achievable and can make him attain financial freedom, but because he has limited finance to establishing them at once. He has to focus on the most significant and easily achievable among them.

Be mindful of your debts

In your quest for financial freedom, you will be prone to asking for a loan. It is the usual normal thing for everyone seeking success because you cannot make it solely on your own. You will be exposed to many risk takings, many hazards, and many rough paths. If you depend on your sweat alone you might not make it to freedom.

So, in one way or the other you need to seek a loan, in other to achieve your aim. The most important thing when seeking a loan is to be very mindful not to take more than is necessary or more that can lead you to bankruptcy. Even the already successful people still seek loans in other to carry out the huge project. Plan properly your channel of payment and how possible to meet your loan target.

Spend wisely

It is very easy to destroy than to build. If you happen to interview most people who are successful about their success stories. They will tell you it was never a day journey. You can easily spend a thousand dollars within an hour in a grocery store but I tell you even your passive income may not yield such an amount within one day.  You are not aspiring for financial independence if you are spending recklessly, and if your expenditure budget is more than your income budget.

Spend wisely, and be the copyright of those who are very calculative with their method of spending.

Manage your inventory periodically

If you can succeed in establishing multiple channels of earning money, remember it does not end there. You need to make periodic checks and balances of your accounts. It is a way of helping you to ascertain your overall earnings for a certain period. It is also a way of helping you to understand when you are losing it and when you are making more income. Conducting an occasional audit of your business transaction is very essential in everything you are managing as a source of income.

Be mindful of your lending’

The fact that you want to be financially free does not call or request that you become unsympathetic to other people’s conditions. When people come asking for help either for charity or for a loan, utilize the opportunity and give a helping hand. People do receive more from giving out. But while you are doing so be reasonable too.

Attach more value to your reserve

Now supposing you were able to step on the track of financial freedom and you are just growing. should you then start living in extravagant or choose to pay less attention to your reserves? If you allow economic wastage and choose not to value them all because some money is already coming in. you are likely to meet your downfall. Your reserve turns to be every kind of asset you have in possession. The more you damage them to buy new ones the more expenses that might lead to your financial debt.

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