The prevailing mindset among many people is that financial freedom, saving a lot of money and enjoying it is possible, but only after decades of fatigue and hard work when you are over the age of sixty or seventy, well the good news is that you do not have to do this and you can start your path towards financial freedom from fork
Here are 7 steps that enable you to earn and save a lot of money and reach financial freedom without living the life of the poor, all while you are still young
1- Start with a plan.
The concept of financial freedom varies from one person to another, some may seek to own a luxury property and an expensive car
- And others may be enough to live comfortably away from debts
- Whatever kind of life you want, you have to define precisely:
- What does financial independence and financial freedom mean to you?
- Select the bank balance you are seeking
- The lifestyle you want
- schedule for that.
- Review your actual financial situation realistically and impartially
- Set small goals and stations at regular intervals to help you work steadily toward your goal and toward financial freedom
This will help you set a long-term goal and know the work you need to do to reach it
2- Stop trading your time for money.
Successful people do not do that, time is the most important commodity in the world because it is limited and if you exchange your time for money, your income will always be limited, so how can you benefit from this valuable commodity?
- Start changing your mindset, think about trading value for money instead of time for money
- What skills and talents do you have that people value and need?
- When your thinking changes, it opens a door to endless opportunities
- Be the best (when tasked with doing it best)
- Find a way to create value that serves people (search for a problem that has no solution)
- Market yourself without shame
- Offer your services directly to the public as an independent seller and freely set the return
- Sell a specific product such as an e-book, blog, training course, or consulting services
The nice thing is that it can all be done online and you still have more time to spend with family and friends while your earnings continue to come in and you progress toward financial freedom.
3- invest in yourself.
To become a more valuable person, you must continue to grow and develop personally and in business. This is the most profitable investment you can make that will give you cumulative returns over time while increasing your value in the moment.
- Improve yourself every day
- Get rid of habits that do not align with your goals and slow down your path to financial freedom
- Develop new, more productive habits
- Invest in courses and training to increase your skills, abilities and knowledge so that you are more willing to negotiate salary if you are employed or raise your prices if you are working for yourself
- Take care of your health (make sure you eat healthy food, sleep optimally and exercise)
4- Living below your means is the fastest path to financial freedom.
This is the foundation of all aspects of your life, the reason is that when you live above your means simply means borrowing and spending other people’s money in the form of debt, installments and credit cards This may be one of the most difficult skills to master
- You have to make painful changes in your lifestyle
- Get rid of the reckless spending you are used to
- The problem is the human need for immediate gratification, and the solution lies in thinking in the long term, which means sacrificing unnecessary expenses for a better financial future.
- Be comfortable with the idea of delayed gratification
- Learn to avoid the stimuli that make you spend everything in your wallet without thinking
- Cut unnecessary expenses from your budget and at the right time you will find that you have an emergency wallet, got rid of your debts, and even have enough to invest
5- Learn how to manage your money by doing the following.
- Calculate every cent that goes into your accounts
- Ensure that your bills are paid on the time
- Commit to achieving your savings goals
- Consolidate your accounts, credit cards, debts, etc. into one account instead of many accounts spread all over the place
This will reduce paperwork and get lower service fees. You can easily keep track of your accounts with a single online login instead of logging into each account separately.
- Consolidate your loans as much as possible. It is easier to keep track of one installment payment than to follow several loans and you may end up paying additional fees and interest because you are behind on a payment.
- Create a detailed budget to help you keep track of your expenses The best way to benefit from budgeting is to keep track of every penny that comes out of your pocket and there are apps that allow you to do so easily
When you analyze your monthly expenses report, you will be surprised that you spend more money than you think on certain things, you will also know where your money is going and the unnecessary expenses that you have to stop
A budget also helps you reduce spending and avoid costs that are not included in it, but it will not help you much if you do not stick to it literally.
6- Save money no matter what your situation.
Many are planning for financial freedom and saving and say to themselves I will do it when my income improves and I pay all my obligations, the problem is that that time never comes and when crises happen we are not ready for them
If you can’t save some savings, find a way to increase your income, reduce your expenses, or do both! The important thing is to save money, it is very important
When you save up to six months or more on living expenses, it’s time to invest
Financial freedom comes faster when you make your money work for you
It is always better to invest regardless of the market situation
Reduce the risk by calculating and studying the average cost in the stock market
A type of your investment puts different assets in different funds to protect yourself from unexpected surprises
7- Avoid debt unless it brings you more money.
You can’t reach financial freedom when you still owe banks and other people
Plan to get out of debt as soon as possible
Change the habits that got you into the debt trap in the first place
Pay off high-interest credit cards and consumer loans first, then reduce mortgage loans and lower interest loans second
Once you get rid of debt in a particular category, you never return to it
You won’t be debt-free overnight, but the sooner you start paying it off, the sooner you’ll get closer to financial independence.
In conclusion, there is no unified plan to get rich but to become financially free with enough money for a better life you have to put in more effort with required discipline