How would you feel if you woke up one day and knew that your financial worries were gone? You could do whatever you want, whenever you want, and however you want. Finance freedom is a goal for many of us, but what does it actually mean? In this blog post, we will discuss the perfect level of finance freedom so that you can decide if it’s something worth pursuing.
What is Finance Freedom?
Finance freedom can mean different things to different people. One person may find finance freedom when they have enough money in the bank to no longer worry about having an emergency fund, while another might see it as being able to pay off their student loans or mortgage.
It’s not a goal that everyone has on the same level, and some people find themselves financially stable earlier in their lives than others. We all have our own desires for finance freedom at different times in our lives, so what matters most is figuring out your goals now and making sure you are working towards them every day.
Here are steps to achieving finance freedom no matter where you’re starting from or what your future plans are.
Track Your Spending
A significant part of controlling your finances is precisely knowing what you’re spending your money on. It’s a lot easier to comprehend how we can achieve financial success when we know where our hard-earned dollars are going. So if you’re not sure where your cash is going, take a few days to track everything.
Write down all of your expenses and why you spent money on that specific item or service. It’s also a good idea to get your pay stubs together and review them to have a better idea of your financial activity.
This process can be time-consuming at first, but it will eventually become easier with practice. After a while, tracking expenses by saving invoices and receipts will become an automatic part of your life rather than something you have to think about each time you spend your hard-earned dollars.
Once you know what you are spending your money on (and why), finance freedom just might seem more achievable.
Set Financial Goals and Make a Plan to Achieve Them
Setting goals and making a plan is one of the best ways to achieve finance freedom. You can start small by setting short-term monetary goals, like paying off your student loans or saving up for a new car. However, it is also important to set long-term goals, such as saving for retirement or owning your own home.
Once you’ve got some ideas about what you want to accomplish financially in the next few months (or years), make an actionable plan that outlines how you’re going to get there. It can also be beneficial to seek advice from a trained professional financial advisor to review your goals and plans to see if they’re attainable or feasible.
Pay of All Debt
Debt is the number one financial problem for many people, so it is vital to start paying it down as soon as possible. Carrying high balances on credit cards and other lines of credit can make it hard not only to manage monthly expenses but also to save up for a financially secure future.
It may be challenging at first, especially if you are used to living with higher spending levels due to increased access through loans or credit card purchases, but finance freedom will come quicker when you pay off your debts.
With this knowledge and time invested in making repayment plans happen, eliminating debt could easily become an attainable goal, even while working towards other short-term goals.
Invest in Yourself
Investing in yourself is one of the most important ways to achieve finance freedom, and you don’t need a lot of money or an impressive resume to do so, either.
Investing in yourself might mean taking classes on personal finance, attending seminars about investing strategies, and reading as many personal finance books as you can about financial success stories for entrepreneurs. Of course, this doesn’t have to come at the expense of other things like work or social time with friends.
Invest your time into learning more about finances (or anything else) and grow your skillset over time. The payoff will be worth it later down the line because you’ll have gained valuable knowledge that will also help improve your professional life.
If you want to be financially free, it will take time, effort, and commitment. Nevertheless, the rewards for success are worth every hard-earned penny. There is no one right way to achieve monetary freedom. However, if you know your goals and have a plan for accomplishing them, financial independence can be yours at any point in life!