In this money-conscious world, many people are eager to acquire financial freedom. Even though that is the case, very few people do ever get to attain it. Most people just don’t know how to get there.
The road to financial freedom is extensive. There are many things you need to do when looking to attain it. This article, even though it is not exhaustive, will provide a 10-step guide to help you travel through your unique journey to financial freedom.
1. Understanding your net worth
Do you know how much you are worth? You need to understand your financial state by knowing what you got and what you owe. You should subtract your assets from liabilities to rate your net worth. Liabilities could include debt and expenses while assets could include cash and investments.
Understanding your net worth will help you know where you stand on your journey to financial freedom.
2. Tracking your money
Now that you know what you own and owe, do you know how you spend your money? Keeping track of your money will help you assess and manage your finances.
There are several financial management applications that can help you budget, plan, and track your money usage, and it’s absolutely crucial. While it is tasking work, keeping track of your money will help you optimize your finances and increase the odds that you can successfully achieve financial freedom.
3. Paying yourself first
You should never use your paycheck to pay off your bills and debt first. Sure, you should lay away some amount to cover these payments and help reduce your financial load, but you should also seek to increase your savings. Put yourself first by laying away about 10% of your income for starters while targeting a higher level of savings in the long term. Learn the value of other foreign currencies, like Iraqi dinar value, and consider exchanging one part of your savings in another exotic currency in order to make it a bit harder for you to spend it unplanned.
4. Doing it with others
There are many people around you who could help out with your financial goals without your knowledge. You need to develop working habits with your family and friends to help you get the best out of your strategies.
People around you could provide support and motivation, and may even take up efforts such as working within a budget. Look around to gain valuable aid in your journey to attaining financial freedom.
5. Investing instead of consuming
You should always live within a budget that’s set according to your disposable income. You need to assess your expenses and try to minimize the costs as much as you can. Always ask yourself what everything you buy will cost your financial freedom, and watch how you cut down on unnecessary spending. You can even start small with a glass jar at home to help you see just how much you might have wasted.
6. Investing in yourself
You should invest in yourself through saving and invest in your skills. Always look to sharpen and expand your skillset to help you gain additional sources of income. There are many avenues available to help you acquire and train new skills such as web channels. Investing in yourself will help you gain the skills to help thrust you to financial freedom.
7. Getting multiple sources of income
Once you’ve invested in yourself, you will be better able to seek additional income. Consider your current source of income and look into additional options that can be scheduled around your work to help raise your level of earnings. There are opportunities for side hustles on the internet that could be of help.
8. Learning and improving
There are new ways of operation developing across the board. You need to stay informed of the latest trends to understand the financial aspect of the world as it is. You can also explore different transformations across the financial field throughout the years to know what to expect. You will be sharper with your money and better able to manage your way into financial freedom.
9. Waiting for results
Financial freedom strategies will not work within a day, week, or month. You need to be patient and plan for the long term in your vision. You should work on different aspects slowly but consistently to ensure success in the long term. Make a habit to decide for your future self, and maintain your work to achieve financial freedom.
10.Becoming a mentor
By this time, you will have acquired enough knowledge to become financially comfortable. You will be better able to control your resources and revenues, improve your credit and live free of debt. You may even know how to handle tough tasks such as getting successful grants.
You could consider learning and stay at the top of the game by becoming a mentor. You can share your experiences through websites, blogs, speaker forums, or books to help others chart their way to similar financial success.