In this article, I’m about to give you some ideas on how to achieve financial freedom. All of them are in you and your habits, no matter how much money you make.
Financial freedom is not about getting rich, although these can get you rich the main idea here is give you some how-to steps to follow so you don’t have to depend on others and you can be free financially talking.
The first thing to do is to overcome the financial barriers you are already facing. We are used to theses barriers that we haven’t notice they are the bad habits that are making our life pretty difficult.
How To Achieve Financial Freedom?
I believe by overcoming the personal barriers we convert as a habit (bad one) and we don’t even noticed.
Warning: these ideas require time and constant practice. I’m trying them everyday, sometimes are difficult but I trust they are worthy, don’t give up, keep going.
Tip 1: Intentionally “loose” your credit cards
Aren’t you ready to cut them off? Try to hide them but do not carry them in your wallet. Credit cards are useful tools but the problem is that they can get out of control very easy. Interest rates are usually high and as soon as you don’t make the full payment every month, your monthly account start climbing, it’s like a snowball.
Put your credits in an envelop and hide them away, hide them were it’s difficult to get them later. The idea behind this tip is to make it difficult to gain access to them and hold-off your impulsive spending.
Tip 2: Automatic savings
Everybody know that savings are the first step to have more. But at this moment you may be wondering yourself, how am I going to save when I can’t keep any money I earn?
You have to put in practice the principle: Pay yourself first. Are you working and earning money for yourself or for everybody else but yourself?
Set up an automatic savings transfer. As soon as your money gets into your account, some should be transfer to a different account. Right now, it doesn’t have to be a specific percentage, of course lots of experts recommend at least 10%, but, let’s be honest, if you are struggling with your money let’s start with 1%, but do something about it. Two months ahead increase it to 2%, and go on, until you can save 10%. Of course, if you can save more, do it. Set the money aside and live with the rest.
Another warning, after you see your savings account growing and growing, lots of people fall into temptation to use that money, or at least a part of it to buy things they don’t need. Hey! a “sale” is not an emergency. Even though if an article you want is 50% off, but if you don’t need it, then it is expensive. You know what I mean right?
In this case, I recommend you to put your savings into a remote bank, or use an investment account, CDs, or any other financial instrument. Maybe some cash investments because you may also need this money for an emergency (but a real one).
This brings us to the third tip:
Tip 3: Investing Plans
If you’ve reach in your savings account a level to at least $500 you are on your way. This money is important and this should be your low limit to an emergency fund. The ideal is to have at least three to six months of your monthly income as an emergency fund. You’ll get to that, don’t worry.
But, if you reach $500 I can propose you an innovative idea. If you are saving 10% of your salary, keep filling your savings account with 5% and use the other 5% to an investing plan. This money is for long-term savings, investing plans or you can keep it until you retired.
If you thing you can save 10% and invest more, please! do it! it is for your own good, it’s all about on how to achieve financial freedom and for that, you need hold on your expenses and increase your saving habits.
I give you here some other post about savings you can use:
Tip 4: Save the Extra-Money! Get Some Extra Money!
Get Extra Money! Yes, you can get some extra money, save it or use it to pay off some debts, or at least make some extra payments.
I’ve already wrote about this topic, I’m not going further this time, I encourage to read: SOME WAYS TO MAKE QUICK MONEY.
A couple of days ago, I read an article at Business Insider: High Paying Jobs You Can Do On The Side. This can help you too.
Tip 5: Avoid the extra expending
If you used to buy an extra coffee, and extra donut, some extra music cd’s or dvd or blu-ray movies, an extra bagel, etc. Try to keep them away, avoid going to buy yourself your coffee, avoid to go to the mall. These habits can kill you and won’t be good for your wallet.
Tip 6: Establish an education account
If you already are saving 10%, investing 10% and you find you are improving your expenses, please consider an education account.
Education is something that nobody can take away from you and keep your mind open to new opportunities. Even though, there are some free courses you can take, if you need to buy a book, get into a paying course about money, to better some skills, don’t hesitate to do it. You don’t have to own an MBA title to increase your income.
Here you can read about this: Online Courses On Money.
Put these tips into practice, all of them are about on how to achieve financial freedom and additionally, create new ways to your normal behaviors.