How You Achieve Financial Freedom And How To Keep It
3 mins read

How You Achieve Financial Freedom And How To Keep It

There are many articles and even books out there on the subject of financial freedom. I would not give you some life hacks that could drastically change your life overnight but I can surely point out some habits that can allow a person to achieve financial freedom as early as possible in their life.

First things first is to set the ground rules for the game. And the most important rule is that there is no shortcut to it. Weather you are a professional or a businessman personal financial freedom is a dream for us all. Proper planning and execution are of top most priority if you ever want to reach your goals.

I have seen many really good and hard working people going someplace with their lives really fast but nowhere.

The very first thing that needs to be done is to understand where you stand. What is your current financial standing and obligations. Adding future obligations like Marriage, Kids, College Fees for Children, House, Retirement Fund etc would give more accurate understanding.

Based on your current standing you should set your goals. The goals should be realistic. For example if you are earning 10k per month then mathematics says you will make 120k per year and no matter what kind of returns you start chasing you will never make 50 million in next 5 years. So set a realistic goal.

Now for everyone who has a networth less than $100,000 dollars the fastest way to increase your networth is by spending less rather then investing. So start focusing on your expenses. Track your spending and try to minimize unwanted expenditures. If you are eating out in a good restaurant 5 times a month then cutting it down to 4 times a month would give you 20% return guaranteed rather then chasing higher returns in stocks or any other investment vehicle.

Try to invest whatever you are saving and try to be consistent with your saving habits. It might feel worthless to start off with but soon it will start creating a snowball effect due to compounding which kicks in after some years.

If you have debt then pay that debt first and then start your investments. If you have multiple debts then pay off the debt with highest interest rate. If possible then you can also just pay minimum amount on low interest debts to finish your higher interest debt first of all.

Even if you feel like you are doing rhethoric work day in day out, stick to it. Sticking to your core strength in business or in job is going to help you to be consistent with your investments. Upgrade your skills or ask for a raise. Try cutting down costs or increase your sales if you are in business.

Invest wisely and only into the things that you know a little bit about. Do not invest into get rich quick schemes.

Do this above steps for a decade and you will yourself find the remaining answers to unlock the puzzle.