How to have financial freedom?

financial freedom, It may sound like a nice theory. But the truth is, anyone can achieve it. And I mean anyone—even someone who once had tens of thousands in student loan debt like you do. No matter what financial troubles you’re facing today, there’s always a way to get back to clean. Maybe the first step is to try a budgeting app.

In this article, we will dive into the importance of financial freedom. I'm also going to share with you some tips for having your financial freedom, including a few that have worked for me.

What is financial freedom?

Ah, financial freedom! It’s a concept that many of us dream of, isn’t it? Let me tell you about it in a more personal and accessible way.

Imagine for a moment that you wake up one morning, and your first thought is not “I have to go to work to pay my bills.” Instead, you ask yourself, “What do I want to do today?” This is the essence of financial freedom. It means having enough resources to cover your needs and desires, without depending on a traditional job.

In practical terms, this means that your investments, savings or passive income sources generate enough money to finance your lifestyle. No more stress at the end of the month, no more anxiety about losing your job. You have the luxury of choosing how you want to spend your time, whether that's traveling, devoting yourself to your passions, or even working on projects that are important to you, without worrying about their immediate profitability.

But be careful, financial freedom does not necessarily mean being millions rich. It's more about balancing your passive income with your expenses. For some, this may mean a simple life without financial constraints. For others, it may involve a more luxurious lifestyle, but still financed sustainably.

Achieving this freedom usually takes time, planning and discipline. It's a bit like planning a long trip: you have to define your destination, map out your route, and sometimes make sacrifices along the way. But imagine the satisfaction of finally arriving at your destination!

Ultimately, financial freedom, it’s the power of saying “yes” to the opportunities that present themselves to you, without money being an obstacle. It's the opportunity to live the life you choose, rather than the one dictated by your financial obligations. Isn’t that a goal worth pursuing?

Here are 10 tips to help you achieve your financial freedom

1. Understand where you stand

You cannot achieve financial freedom without knowing your starting point. Looking at how much debt you have, how much savings you don't have, and how much you need can be a depressing reality. But it is an important step in the right direction.

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Make a list of all your debts: mortgage, student loans, car loan, credit card and any other debt you may have accumulated. Don't forget to include money you've borrowed from friends or family members over the years. Now take a deep breath. And another. Then add up all the numbers.

How much debt do you have?

If that's a big number, don't panic, I promise I'll share some ways to pay for that later in this article. If it's a small number, congratulations! Feel free to share your financial freedom tips in the comments below.

Next, take a look at all the money you've saved. Compile a list of all your savings: savings accounts, stocks, company stock matching programs, company retirement matching programs, and retirement plans. Next, add the recurring monthly payments you receive, such as salary, extra money, etc. Keep these numbers in mind as we work through the following financial freedom tips.

2 Look at money positively.

Debt can certainly be a little daunting. But remember that money is a good thing, even if it seems to carry a heavy burden right now. You deserve to get financial freedom.

According to You Are a Badass at Making Money by Jen Sincero , people who don't make a lot of money often feel shame when it comes to making money. And so the biggest obstacle a lot of people have when it comes to making money is that they feel like money is bad.

Many feel guilty for having it and more guilty for wanting it. We use money every day to improve our lives, but we always seem to focus on its negative aspects. Money is simply a necessity like food or water. It helps you buy what you need and live the life you want.

To experience financial freedom, you will need to view money as a tool that will help you achieve your dreams, fuel your energy, and live a stress-free life that you can enjoy. Because if you view money negatively, you will unconsciously sabotage your chances of earning and keeping it.

3. Write down your goals

Why do you need money?

Do you want to get rid of your debt for good? Are you desperate to escape the grind 9 to 5 ? Is there a place you've always wanted to travel to? Do you need to save for a wedding, children or retirement? I achieved financial freedom because I tied it to an emotional goal. My goal was to get out of student debt and save for my first home. And honestly, it was a euphoric experience to see the debt decrease and my savings increase.

I was so excited to see the numbers change that I worked harder to earn more money and see a bigger change in my personal finances. Would I have achieved my goal of financial freedom if I hadn't tied the goal to something emotional? Probably not. I desperately needed to get out of my debt and move out of my parents' house. This desperation kept me motivated throughout my journey.

Another interesting thing happened. In February 2018, I wrote on a piece of paper some of my goals:

• Win 100$ 000 by selling products online
• Save $ 20000 for a deposit
• Refund $ 24000 student loans

I ended up misplacing this paper and completely forgot about it. And then one day, a little over a year later, when I was already living in my new house, I found it in my notebook. Sure enough, I had accomplished the three things. The funny thing is, I didn't even consciously think about those goals.

You might not accomplish everything you want in a month. But a year is a long time to make progress on your goals. Make sure your goal is tied to a specific number you want to achieve. Believe it or not, you will start working towards those goals without even realizing it. By knowing exactly what you want to accomplish, achieving financial freedom is a million times easier.

4. Track your spending

An important step toward financial freedom is tracking your spending. You can use a tool like Mint, which will let you know how much money you're spending. In which categories you overspent, how much money is in all your accounts, and how much debt you have.

Another neat thing about Mint is that it lets you set goals in the dashboard. You can keep track of your goals and know the exact month when you will be expected to achieve the goal based on the money you have invested. So you keep yourself accountable and remember to keep investing money for yourself.

After using Mint for a month, I managed to save some extra money for my new wedding fund goal. Mint helped me stay focused on my goal and pushed me to create more passive income to reach my financial milestones.

5. Pay yourself first

You've probably heard the phrase "pay yourself first." But in case you haven't, "pay yourself first" means putting a specific amount of money into your savings account before you pay anything else, like bills. And paying yourself first has helped countless people get closer to financial freedom.

Why?

'Cause if you want to pay yourself first $1 000 per pay period, all that's left is to pay the bills. And if you don't have enough to cover those bills, you're forced to collect secondary income to offset the costs.

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By paying yourself first, you ensure that you are always putting money aside to invest in yourself. By doing the opposite, you only get what is left over, which is usually not enough to help you enjoy financial freedom. You can also pay yourself first in other ways. For example, If your company has a retirement savings program, you can request to withdraw the money for your retirement. This way you invest in yourself and your future first. The money is deducted from your paycheck, so all that's left is money you can set aside for bills and expenses.

6. Spend less

In 1958, Warren Buffett bought a five-bedroom house for $31 and hasn't moved since. His net worth? An incredible $500 billion. He can afford a bigger and more expensive house. But his frugality could very well be the reason why he is one of the richest people in the world.

Kanye West, on the other hand, isn't afraid to flaunt his money. He lives in a $20 million mansion. And at one point, with $53 million in debt, he decided to ask Mark Zuckerberg for $1 billion… on Twitter. The difference between the two super successful gentlemen? Buffet didn’t spend more than he needed to, and West spends money he doesn’t have. The truth is, a lot of rich people don’t look like rich people. Zuckerberg literally wears the same boring t-shirt and jeans every day. Buying less stuff can actually help you get richer.

By spending less, two things work in your favor. First, you'll have more money to set aside for your financial freedom. Second, you'll learn that you actually need a lot less stuff to survive, which also helps you put more money aside. And that goes into our next point…

7. Buy experiences, not things

Life is short. It's not about accumulating all your money before you turn 65. You are allowed to enjoy life while you are alive. Ultimately, the things that will help you live a more fulfilled life will be the experiences you have, not the products you own.

And do the things you buy make you happier in the long run? Is the debt you have from buying a bunch of stuff making your life easier? Now let's flip the switch. What is your fondest memory? What were you doing ? Who were you with ? Let's create more memories like this. Maybe you have a friend you enjoy working with. Invite him to exercise on a YouTube playlist at home for free.

It's date night. You want to make it unforgettable. Find a cool activity that you've never done before. Have you always dreamed of traveling to Rome? You've been saving money for a year to live the vacation of your dreams. Go on vacation without guilt. You didn't go into debt for this, you earned it. Or you can become a digital nomad and travel the world while working abroad.

Life is made up of moments. The best ones come from quality time spent with friends and family. While some products can help you connect with your family (like weekly family video game night), most of them don't add much value. Don't spend money, you don't have to pretend you have money.

8. Debt repayment

Some people will tell you that it is wiser to invest your money in stocks than to pay off your debt. If you're an expert stock picker, that might be true. But if you've never invested in stocks before, you could end up with more debt.

Many people feel the same after completing their last debt payment: relieved. If you have $50 000 debt, even if you have $30 000 cash in the bank, you can't really call yourself financially free. You still have $20 000 in the hole.

While paying someone else isn't as glamorous as having money in the bank, it gets you closer to financial freedom. There are two main methods of paying off debt: the snowball and the avalanche. Snowballing is when you pay off the smallest debt first. The avalanche is when you pay off the debt having the interest rate The highest.

You need to decide what is best for you. But when I was working to become debt free, it had a snowball effect. It helped me stay more motivated. Since I was able to get rid of my first debt, a credit card bill of $1 200, in just one month, the feeling of accomplishment motivated me to tackle a much larger and persistent student loan. Paying off a large debt takes a huge weight off your shoulders. After you pay off your debt, you see the amount of money you have in the bank increase.

9. Create additional sources of income

Alright, at this point you're probably thinking, "My debt is so much more than my salary, how can I pay it off if I don't earn enough?" If you're serious about financial freedom, you have to sacrifice sweat and tears.

If that is the case, you need to step it up and look for money outside of your current job. Me for example, I am a teacher-researcher and nothing prevents me from being a blogger and business consultant. It's all about organization.

Some experts recommend having around seven sources of income. If you have a job congratulations you have one, only six more to do! Now, you can look at your sources of income in two ways: active income (exchange time for money) or passive income (money that can keep coming in, even while you sleep).

Sources of active income

If you trade your time for money, you are limited by the hours of the day. Here are some side jobs you can do to earn active income:

• Become a freelance writer by finding jobs on ProBlogger, Upwork, Fiverr, and more.
• Help a business owner as a virtual assistant with jobs on Upwork
• Learn new skills through online courses for entrepreneurs
• Become an Uber driver
• Help with household chores on Task Rabbit
• Pick up the odd, casual job on Craigslist
• And more!

Sources of passive income

If you don't have a lot of time to devote to earning income, you can focus on increasing your income streams with passive income such as:

• Start an online store. Check out this article to find out how to successfully start an online business
• Start Your Own Custom Clothing Business on Shopify
• Sell ​​profitable content (blog, ebooks, courses, webinars, audiobooks, podcast, apps)
• Become an affiliate marketer. Consult our complete training to learn more learn more about affiliate marketing.
• Buy properties and rent them out
• Invest in stocks

Luckily, your seven streams of income can all come from the same source. For example, if you're an e-commerce expert, your revenue streams might come from building seven different stores. Remember: you don't have to start with seven streams, you can build on them over time. Here is a key article that explains you step by step how to live entirely from your blog.

10. Invest in your future

The last piece of financial freedom advice is to invest in the future. Suppose you follow the advice and recommendations in this article, get out of debt and increase your savings. That might be enough to help you right now. But what if the unexpected happens? Will you be prepared for this?

It is therefore important to save, put money aside for rainy days. In case you die, your family won't drown paying your funeral, debts and taxes. Alright, now back to that happy place.

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If you have that 9-to-17 job, talk to your company about adding a retirement plan or see if you already have deductions for it. The deduction is taken before it hits your account, so you never feel like you’re losing money. And it’s pretty cool to check in periodically and watch your savings grow. By setting aside money for a rainy day and retirement, you’ll be less likely to go back to where you are now: wishing for financial freedom.

In summary…

financial freedom can help you take charge of your finances and, more importantly, your life. It's about living within your means, being a little thrifty, and making sure money is spent on things you really need like food, shelter, and even vacations (relaxation is also important, you know).

Following the advice offinancial freedom From this article, you will get closer to the financial freedom you deserve. So take a look at your finances, create additional income streams, pay off your debts. Before you know it, you'll be free. For all your concerns, leave me a comment. Thank you for all the trust you place in me.