Money is and has been a big problem to many. It has the key to both happiness and misery which entirely depends on you. The secret to achieving financial freedom is simply planning and knowing which choices make or break you. The problem with most people is getting excited when they get cash in hand. They tend to forget their previous problems and even squander their hard earned cash only to regret later. This is not wise at all and might be your situation at the moment. Money can last and liberate you if you want it to. But be ware as it can also hold you captive and make you life even more miserable. Money should be your servant, to use it as you please and make life even more interesting as it is. On the other hand, through your own doing can make it your master and this, is the key to destruction. That said and done, you need to know what needs to be done for you to gain your financial freedom.
1. Get out of debt
This should be your first priority as nothing holds you more captive than a debt. You are better off having little in your pockets and debt free than a lot but knee deep in debt. As long as you owe some one, you could never really experience the freedom. Put aside some percentage of your money for debt payment every time you get your pay check. Slowly by slower you will elevate yourself to a much better financial position. If you are disciplined enough, you could actually do this.
2. Don’t let debt pile up
The longer you stay in debt the more it will pile up and that’s for sure. If you have taken up some loan from an interest accumulating organization, then do your best to settle it as soon as you can. Letting it pile on will dent your financial situation to a stressful situation. Work out a payment plan and honor it, it is the only way you can get out of it.
This is the ultimate secret to financial freedom. Before you even receive your pay cheque, ensure that you have worked out a budget for it. In it, write down what you really need in order of priority from the most to the least. This way, even if you run out of money you would have handled the important things first hand. However, you should work your budget around your income, try to balance it out in such a way that you get your needs to fit in your income bracket. Your budget should include a miscellaneous column which will cover unseen expenses hence giving you financial liberty.
4. Stop impulse buying
The easy road to financial ruin is impulse buying. In most cases, this comes as a result of greed and excitement whereby one gets a salary and walks down the street buying anything that catches their eye. Well it might seem fun the moment while you’re at it but it won’t be so fun after you run out. No matter how amazing an item looks, if it wasn’t in your budget then it shouldn’t be in your ‘bought’ list. Resist the temptation and smile your way to freedom.
5. Get another job
If what you are earning at the moment isn’t enough to sustain and meet your needs then you definitely need to get another job. One salary can cover certain expenditures while another covers the rest. You might be exhausted at the end of the day but you will definitely experience the much sought after freedom hence totally worth it.
6. Cut down expenses
If you still haven’t achieved financial freedom, then the problem might be lying on your expenses column. It makes no sense having things that you can go without in your budget yet you still struggle to make ends meet. Cut down on anything that isn’t a necessity and you can do well without. This might include clothes shoes and jewelry. Use this money instead for food and settling debts. Within a short while you will be financially free from debt and any other burden.
7. Make your money last
If you only receive your pay check at the end of every month, then your money should sustain you for that specific duration of time. You can even squeeze in some savings out of it too if you wish. If this isn’t happening then you should know that you’ve got a problem in your hands. Work your budget in such a way that all the necessities for the month are included in your budget. The things you use during the month should definitely belong in your priority list meaning that hey will always be covered come what may.
8. Stop saving
Saving is definitely a good practice but there is no point in saving if you owe people or the money is barely enough to sustain you. Saving up a bit is a great exercise but the fruits of it are sweetest when done at the right time. Before you embark on a savings journey, make sure that you are debt free and the necessities are met. After all your debt are settled, then definitely start saving up for tomorrow. Having a specific amount of money set aside is awesome for mental peace especially when an emergency arises. Save only when you are in a financial position to.
If you have managed to set aside some amount of money then it would be great if you invested it in an interest generating project. This entirely depends on the amount and your preference. The more the money, the bigger the investment plans. In this case, you could open up a side business that you could be running in your free time but don’t quit your job first. If you have a little saved up then you could invest with an investment company and buy shares. At the end of the day, your money will be growing gradually.
The road to financial freedom is a long and tiresome one but having the discipline to carry on will definitely yield its success. Follow these steps and keep on as you will be the sole beneficiary of the freedom. Remember that you are doing this for yourself.