People’s definition of financial freedom might vary from one person to another, depending on what stage of their life they are in. However, one thing that’s bound to be common is the need for enough money. One sad thing, though, is that very few people ever achieve financial freedom. And it’s not for a shortage of dreamers. I mean, everybody dreams of a life where they have enough money and investments to afford the lifestyle they want, but most fail because they don’t know how to go about living this dream. That doesn’t have to be you. Below are some tips to help you succeed where many others have failed.
Set specific, realistic Goals
Everybody says they want financial freedom, but that’s too ambiguous of a goal. You have to be specific about what your definition of financial freedom is, and draft out a clear path towards achieving it. Break down your goal into milestones – what you hope to achieve within the next one, two, five years, or before you reach a certain age. Endeavor to make the goals realistic to prevent losing motivation due to failures. Lastly, celebrate yourself for every milestone you reach – that means you’re a step closer to your goal.
It is very easy to get carried away, spending money on things that are not very important only to be out of cash when essential needs arise. To make up, you might resort to taking loans, further reducing your chances of achieving financial freedom. This can be prevented by making a budget for your monthly needs and sticking to it.
Make a culture of paying yourself first. Very many people draw up saving plans but never stick to them. Why? They intend saving after sorting out every other financial need they have. But in most cases, when they’re done, there’s nothing left to save. To make it easy, you can enroll for automatic saving with your financial institution or employer. With time, you’d get used to seeing the amount you are left with after your saving has been removed as your real income.
At times, you might be tempted to show off your budding financial muscle, but it would do you no good in the long run. Always try as much as you can to live below your means, to maintain your financial health. Want to make a purchase? Try to negotiate. Cut off profligate friends, who might make it difficult to stick to this plan. Yea, it might look a bit harsh, but you have to do what you have to do.
It’s no news that one of the best ways to grow money is by investing it. Jay Z recently became the first hip-hop artist to make a billion dollars, and he made a significant chunk of that fortune from investments, according to Forbes. For example, the $2 million he invested in Uber in 2013 is now said to be worth about $70 million – that’s an unbelievable 3500% ROI in about six years. You shouldn’t expect to be the next Jay Z or Warren Buffet, though. This is just to show you the immense possibilities you have if you invest right.
Overall, achieving financial freedom requires dedication and a lot of mental strength to keep believing you can. The journey can be challenging, but with the above tips, hopefully, it will be easier for you. See you at the top.