5 Steps To Take For Financial Freedom

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HOW CREATING FINANCIAL FREEDOM CAN HELP YOU REACH YOUR GOALS

I never thought much about financial freedom in my early youth. Both of my parents had always worked a standard 9-5 job, and though I wasn’t thrilled by the idea, it was just what all put-together adults did, or so I thought. 

I first came across Tim Ferriss’s The 4-Hour Work Week four years ago. Little did I know how much those pages would change my beliefs about work and propel me toward a new goal of financial freedom. 

For those of you who haven’t read Tim Ferriss’s book, you really should! 

The process of achieving financial freedom is not a quick one, but it is certainly worth it! My husband and I began the process in 2017 and have finally achieved our goals this year! 

We are now in process of setting new financial goals and putting those in motion. Not only are we working on continued growth, but we are also investing money in ourselves in the form of building a new home and some travel. 

“Just as in other aspects of your life, setting financial goals is a tried-and-true way to reach those goals.”

– Oscar Auliq-Ice

WHAT IS FINANCIAL FREEDOM, AND WHY SHOULD WE STRIVE TO OBTAIN IT

Financial freedom is defined as the ability for one to feel in control of one’s finances rather than feeling controlled by one’s lack. 

It is important to remember that time=money! 

Some of the many benefits of achieving financial freedom include:

• Freedom to pursue your goals and passions.
• The ability to travel the world and check off experiences from your bucket list.
• More time to spend with your friends and family.
• Freedom to implement more self-care into your daily routine.
• The ability to step away from the stress of finances.
• Freedom to “retire” early.

HOW I ESCAPED MY 9-5, AND YOU CAN TOO

STEP 1: CULTIVATING A FINANCIAL GROWTH MINDSET 

The most significant step we can take when it comes to making a lasting change in our lives, no matter the category, is making sure we have the proper mindset. 

Though it seems minor, positivity is vital when it comes to achieving one’s goal. 

Some steps to take when transitioning to a growth mindset are:

• Daily positive affirmations 
• Giving thanks daily for the wealth you DO have in your life 
• Deciding to turn setbacks into positive learning experiences 

HOW WE BECAME TIME RICH AND YOU CAN TOO

STEP 2: CALCULATE WHAT YOU NEED IN ORDER TO ACHIEVE FINANCIAL FREEDOM

When you first start your journey toward financial freedom, it is crucial to define how much money you will need to sustain your lifestyle. 

A good rule of thumb is to overshoot how much money you will need. It is better to have more set aside than too little. 

Total your monthly expenses and add what you would like to put away into savings each month. This should give you a minimum number to work toward achieving each month. 

For example, most financial coaches recommend having at least $1,000 put away in savings at any time. 

It is very important to grow your savings!

STEP 3: CREATE A PLAN TO PAY OFF DEBT 

Sadly most people have accrued quite a bit of debt by the age of thirty, whether it be from student loans, vehicles, medical bills, housing, or just by mismanaging their money. 

We live in a world where we must create debt in order to qualify for the big things we wish to purchase in life, like a home. We must create a clear plan when it comes to the debt in our life. 

A few steps that helped my husband and I get out of debt were:

• Leaving the credit cards at home.
• Taking a week to decide if the large purchase you would like to make is necessary.
• Creating a financial plan so that you can live a month in advance and better budget your money.
• If you are out of money for the month, credit cards are not the answer.
• Pay off any debt with a high-interest rate quickly.
• Check your bank account and statements regularly.
• Track all expenses/purchases.

Each person’s plan will be slightly different; stick with it! Getting completely out of debt takes time! 

STEP 4: CREATE A BUDGET 

If you wish to have any success in altering your finances and achieving complete financial freedom, the biggest key to doing so is creating and STICKING to a strict budget. 

Take a look at your monthly expenses and budget out what you will need for the month, with wiggle room to allot yourself money for fun throughout the month.

Don’t forget to work on setting aside some money for savings each month as well! 

My husband and I like to use a google spreadsheet to track our money and make sure we stay on track each month. 

We have a budget for every category in our lives, such as:

• Food.
• Gas/car maintenance.
• Pets. 
• Home maintenance.
• Fun.
• Bills.

So sit down and examine your financial responsibilities and start budgeting right away!

Be sure to set realistic goals for your spending. The sooner you start, the sooner you will be on the path to financial freedom. 

STEP 5: LEARN TO INVEST 

Throughout my articles, I have hit on the importance of diversifying one’s income or “not putting all of your eggs in one basket.” 

You will find it a trend amongst the wealthy to always have several streams of income at any one time. 

Now, where does one get started when it comes to investing?

• Try investing in real estate, become a landlord or try flipping homes
• Invest your money in a new business you wish to start
• Educate yourself and try your hand at stocks, investment bonds, or mutual funds
• Invest some money in yourself and a skill you believe will benefit you financially 

You can also check out my article, SEVERAL WAYS TO DIVERSIFY YOUR INCOME THIS YEAR. 

CONCLUSION

In close, be creative when solving your financial problems or coming up with new business ideas. Don’t forget to be patient with yourself! 

As will all things worth doing in life, creating financial freedom takes time. Be patient, remain consistent, and you will get there! 

You’ve got this! 

Want to learn more about working for yourself and achieving your best life? 

Stick around for future articles and be sure to SUBSCRIBE for our FREE mind reboot camp, as well as receive an easy printable goal breakdown worksheet! 

What are some ways you have found that have helped you when it comes to gaining more financial freedom? What are some steps you need to work on in order to reach your goal of becoming financially independent? 

I’d love to know! Let me know in the comments below and if you enjoyed this article, be sure to give it a share!

Also, don’t forget to check out the printables in our STORE. 

Have a bright day!