What are the steps to financial freedom? Imagine waking up every day without the financial burdens of this life. What would it look like to work at a job you love, instead of one that simply pays the bills? Or to not have to work at all. To live your life without economic limits. To retire early if you so choose. But what are the steps to reach this reality?
In the most general terms, financial freedom is the ability to live off of the savings and investments that you’ve accumulated throughout your life. By having enough money in the bank as well as other accounts, you’ll be able to take back the steering wheel of your life. The direction your life takes is now completely up to you. Now that doesn’t mean there won’t be problems… there most certainly will. What it means is when those problems arise, you’ll be much more equipped to deal with them. Your new found financial freedom will allow you to make smarter decisions, without the stress of financial burden.
The goals and steps to financial freedom aren’t just about early retirement or quitting your job. In fact, many people who support the F.I.R.E. (Financial Independence, Retire Early) movement, don’t actually want to retire early. They just want the direction of their life, including their job to be dictated by them and not by their employer. They want to focus more on their health and family. More time to travel. More time to learn new skills. To give back to the world. All of these amazing things can be possible if you are willing to put forth the effort.
10 Steps to Financial Freedom
Unless you’re holding out for some future inheritance or you’re one of the lucky few who wins the lottery, you’re going to have to do it the old-fashioned way. Hard work and discipline. Here are 10 basic steps to financial freedom:
Find Gainful Employment
Income is a huge part of reaching financial freedom. Paying off debt gets a lot easier if you have a job that pays well. If your current job pays very little, you may want to consider a side hustle or pursuing a more lucrative career field. In the future, once your savings reach a certain point, you will have more job options that aren’t so dependent on income.
Become a Budgeting Expert
Before you can start paying off debt or saving, you need to master budgeting. John Bogle, founder of Vanguard says you can triple your returns if all you do is control your expenses and emotions. Budgeting can be difficult. Many times it involves a great deal of sacrifice. But budgets aren’t all bad. Make sure to include some flexibility in your budget or you might risk burning out before long. Put your budget to work for you and it will be your best friend.
Manage Your Credit
Pay off your credit cards every month. Many people say to completely get rid of …read more
Source:: Investment You