Achieving financial freedom does not necessitate that you make a six figure income. It does, however require you to make smart decisions each and every day. The following tips will help you discover how not only to obtain financial freedom, but also build wealth that you have only dreamed about.
Do you feel “okay” with your current financial situation? Have you come to a place of acceptance, in which you hold the belief that you are powerless?
The fact is that you are not powerless, and if you truly want to know how to make millions, you must first learn to become fully functioning. When you do this you can enjoy the fruits life has to offer, as well as the good things that money is able to do for you, as well as the world.
This definitely sounds like a game worth playing, right?
Achieving financial freedom does not necessitate that you make a six figure income. It does, however require you to make smart decisions each and every day.
The following tips will help you discover how not only to obtain financial freedom, but also build wealth that you have only dreamed about.
Step 1: Plan
You need to take time to sit down and set lofty, yet attainable, goals for where you want to be and what you want to achieve. For example, you can say that you are going to have all debts paid in the next year or that you are going to live for under $20,000 this year.
There is no one that is going to make you save money or tell you not to waste thousands of dollars on unneeded purchases; it is completely up to you.
Being in debt feels overwhelming, suffocating, discouraging, and sometimes hopeless. I compare it to nearly drowning in the ocean. Imagine that you are swimming, but have become overwhelmed by the waves, the water suffocates the oxygen out of your body, the tide gets stronger, and there is no help in sight.
That’s how being in debt feels. As the Bible says in Proverbs 22:7, “the borrower is slave to the lender.” The path to financial freedom begins with a budget.
Related: How to Create a Budget
Step 2: Save
Saving money is one of those goals that is exciting to make, but extremely difficult to achieve. The decision to spend less and save more can go from determined to half-succeeding to completely giving up in no time. The temptation to go back to your old ways is strong and without a plan most people end up doing just that.
Once you know what you want to do, you need to know how you are going to get there and begin taking steps to do so. This involves saving more money than you spend. You can create a traditional budget and then manipulate every dollar extra that you have to make it work toward your financial freedom.
Related: 5 Smart & Practical Tips for Spending Less and Saving More
Step 3: Pay Off Debt
While investing is important, you also need to be focused on paying off your existing debt.
Getting a loan is not to be taken lightly. You might be surprised to hear this. After all, everybody you’ve probably spoken to in the past will have likely told you loans are no big deal.
It’s true that getting a loan can be a very bad idea; however, sometimes it can actually help you. This guide will help you to consider five important things before taking out a loan.
All of your debt should be eliminated. Once you have done this you will actually be on the way to truly building your wealth.
Related: 5 Sure Fire Ways to Know Your Loan Was Foolish
Step 4: Invest
Now that you have begun to save money and pay off debt, you need to do something with it that will build your wealth. You should not just stick it in a savings account and forget it, invest in whatever you can find that has the highest return.
In the past 100 years, the highest returns were gained from small business ownership, stocks and real estate; however, these also come with risk.
Finding the right professionals that can offer fund facts and guidance can help you to invest your money in the right way.
What are your financial dreams?