If there is one thing that I aim for is financial freedom, this is defined as the ability to live on without having to work. I love writing for this blog but the aim would be to be financially secure. Here are 7 ways to being financially free. Remember it is not what your salary is, it is what you can save.
1. Be Committed
Unless you win the lottery, financial freedom doesn’t come overnight. With this you must be committed to changing your lifestyle habits for this occur. For this to be an ongoing thing I advise you to write down on a piece of paper why you want to be financially free or better off. make sure this is visible daily and it will help with you committing to the plan and be a motivation.
2. Create a Budget
Without fully understanding your financial position it is impossible to know what to do to be financially free. The next tip is develop a monthly budget so you know exactly what money is coming in and where it is leaving. maybe you didn’t realize that you spend $200 on coffees and bagels each month, By writing a plan and budget you have set of rules to follow.
Without fully understanding your financial position it is impossible to know what to do to be financially free.
3. Don’t Keep Up With The Joneses
Whilst it can feel good to able to keep up with the neighbor or family member it often isn’t sustainable. Remember the Joneses are probably in debt too. Stick to your own plan and goals and you are on the right road to success. Don’t base what you have vs what your neighbors have, this can result in unhappiness.
Remember the Joneses are probably in debt too. Stick to your own plan and goals and you are on the right road to success.
4. Keep an Emergency Fund
If anything goes wrong it is important to have a backup amount of funds which can be used. This barrier of funds will stop you from taking out extremely expensive loans and credit cards. All of which result in debt which is not what we want.
5. Zero Debt
Paying out all you salary and income straight to loans and debts is the opposite to being financially free. Get serious about finances and aim for zero debt. Avoid loans and credit cards because this will put you further behind than you can imagine.
6. Save on Restaurants
What seem like a a couple of visits to your favorite Italian each month at $50 a go turns into a mortgage payment on a small place. Stick to your budget and reduce the outgoings to restaurants, it will also be healthier to eat at home. Save eating out for special events rather than just because you don’t want to cook at home.
Save eating out for special events rather than just because you don’t want to cook at home.
7. Save on Your Car
What seem like a bargain car might not be when you make the payments each month added with insurance and the gas it takes. If you car works perfectly fine then don’t get a new one just because.. This is also similar to keeping up with the Joneses, don’t get into debt over a car to replace your perfectly fine car.