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10 steps to achieving financial freedom in 2022

10 steps to achieving financial freedom in 2022

Financial freedom. That might sound like a nice theory. But the truth is that it is possible for anyone to achieve this. And I mean anyone — even someone who once had tens of thousands of student loans really like your debt. No matter what financial problems you are facing today, there is always a way to go back to the black. Perhaps trying out a budget app is your first step.

In this article, we'll dive into the importance of financial freedom and share some tips for financial freedom, including some that worked for me.

What is financial freedom?

Financial freedom is about owning your money. You have a reliable cash flow that allows you to live the life you want. Don't worry about how to pay your bills or sudden expenses. And you are not burdened with a pile of debt.

It's about realizing that you need more money to pay off debt and possibly increase your income with a side hustle — we'll get to that in just a minute. It's also about planning your long-term financial situation by actively saving for a rainy day or retirement.

10 game-changing tips for financial freedom

1. Understand what you are into

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 money you need can be a frustrating reality. But this is a valuable step in the right direction.

Compile a list of all your debts: mortgage, student loans, car loan, credit cards, and any other debts you may have accumulated. Don't forget to include any money you've borrowed from friends or family members over the years.

Now, take a deep breath. And one more. Then add up all the numbers.

How much debt do you have?


If it's a big number, don't freak out, I promise I'll share some ways to push that back 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 saved.

Compile a list of all your savings: savings accounts, stocks, company stock matching programs, company retirement matching programs, and retirement plans. Then we will add the recurring monthly payments you receive like salary, side money, etc.

Keep these numbers in mind as we work through the next few tips for financial freedom.

2. Look at money positively

Debt can definitely be a bit frustrating.

But remember that money is a good thing, even if it seems to be carrying a lot of burden at the moment.

You deserve to achieve financial freedom.

According to You Are a Badass in Making Money by Jen Sincero , people who don't make a lot of money often feel shame when it comes to making money. So the biggest obstacle that many people face when it comes to making money is that they feel that having money is a bad thing. Many feel guilty for having it and even more guilt for wanting it. Sincero said of money, “We use it every day to improve our lives, yet we always seem to focus on the negatives about it.”

Money is simply a necessity like food or water. It helps you buy the things you need and live the life you want.

To experience financial freedom, you will need to look at money as a tool that helps you achieve your dreams, give you energy, and live a stress-free life that you can enjoy.

Because if you look at money negatively, you will subconsciously sabotage your chances of making and keeping it.

3. Write down your goals

Why do you need money?

Do you want to get rid of debt permanently? Are you desperate to escape the 9 to 5 grind? Is there a place you've always wanted to travel to? Need to save for a wedding, kids, or retirement?

When I got financial freedom, it was because I connected it with an emotional purpose. My goal was to get out of student loan debt and save for my first home. And frankly, it was an exhilarating experience watching debt dwindle and my savings increase.

I was so excited to see the numbers change that I worked even harder to earn more money to see a bigger change in my personal finances. Would I have achieved my goal of financial freedom if I had not associated the goal with something emotional? Mostly not. I was desperate to get out of debt and get out of my parents' house. This desperation kept me excited throughout my journey.

Another interesting thing happened. In February 2016, I wrote on a piece of paper some of my goals:

Earn $100,000 selling products online
Save $20,000 for the down payment
Pay off student loans of $24,000
I ended up in the wrong place for that paper and completely forgot about it. And then one day, a little over a year later, when I was already living in my new home, I found it in my notebook. I certainly accomplished all three things. The funny thing is, I didn't consciously think about those goals.

You may not get everything you want to do in a month. But a year is a long time to make progress on your goals. Make sure that your goal is linked to a specific number that you want to achieve. Believe it or not, you will start working toward these goals without even realizing it.

Knowing exactly what you want to achieve makes achieving financial freedom a million times easier.

4. Track your spending

Tracking your spending is an important step towards financial freedom.

You can use a tool like Mint , which will let you see how much money you're spending, the categories you've spent in, how much money is in all of your accounts, and how much debt you have.

Mint Financial Freedom

Another great thing about Mint is that it allows you to set goals within the dashboard. You can track your goals and know the exact month in which you are expected to achieve the goal based on how much money you put in. Thus, it makes you accountable and reminds you to keep investing money for it.

After using the Mint for 1 month, I was able to save some extra money for my new wedding fund goal. Mint helped me stay focused on my goal and pushed me towards creating more passive income for my financial accomplishments.

5. Pay yourself first

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

why?

Because if you want to pay yourself $1,000 per pay period first, all the rest needs to be billed. And if you don't have enough to cover those bills, you're forced to collect side income to make up for the costs.

By paying yourself first, you ensure that you always put money aside to invest in yourself. By doing the opposite, you only get what's left, which usually isn't big enough to help you experience financial freedom.

You can pay yourself first in other ways, too. For example, if your company has a retirement savings program, you can request that funds be withdrawn 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 save to pay your bills and expenses.

6. Spend less

In 1958, Warren Buffett bought a five-bedroom home for $31,500 and hasn't moved out since. net worth? $90.3 billion. He can afford a bigger and more expensive home. But his economy may be the reason he is one of the world's richest people.

Financial Freedom Warren Buffett

كاني ويست ، من ناحية أخرى ، لا يخشى التباهي بأمواله. يعيش في قصر قيمته 20 مليون دولار . وفي وقت من الأوقات ، مع دين يبلغ 53 مليون دولار ، قرر أن يطلب من مارك زوكربيرج مليار دولار ... على تويتر.

الفرق بين السادة الناجحين السوبر؟ لم ينفق بوفيه أكثر مما يحتاج إليه ، وينفق ويست أموالًا لا يملكها.

الحقيقة هي أن الكثير من الأغنياء لا يشبهون الأغنياء. يرتدي زوكربيرج نفس القميص والجينز الممل كل يوم.

يمكن أن يساعدك شراء أشياء أقل في الواقع على أن تصبح أكثر ثراءً.

من خلال إنفاق أقل ، هناك شيئان يعملان لصالحك. أولاً ، سيكون لديك المزيد من الأموال لتخصصها من أجل حريتك المالية. ثانيًا ، ستتعلم أنك في الواقع بحاجة إلى أشياء أقل كثيرًا للبقاء على قيد الحياة ، مما يساعدك أيضًا على ادخار المزيد من المال.

وهذا يذهب إلى النقطة التالية ...

7. شراء الخبرات وليس الأشياء

الحياة قصيرة. لا يتعلق الأمر بتكديس كل أموالك حتى تبلغ 65 عامًا. يُسمح لك بالاستمتاع بالحياة وأنت على قيد الحياة.

في النهاية ، ستكون الأشياء التي ستساعدك على عيش حياة أكثر إشباعًا هي التجارب التي لديك ، وليس المنتجات التي تمتلكها.

وهل الأشياء التي تشتريها تجعلك أكثر سعادة على المدى الطويل؟ هل الدين الذي عليك من شراء مجموعة من الأشياء يجعل حياتك أسهل؟

الآن دعنا نقلب المفتاح.

ما هي أسعد ذكرياتك؟ ماذا كنتم تفعلون؟ مع من كنت؟

لنخلق المزيد من الذكريات تمامًا مثل ذلك.

ربما لديك صديق تحب العمل معه. ادعها للتمرن على قائمة تشغيل على YouTube في المنزل مجانًا.

إنه موعد ليلة. تريد أن تجعلها لا تنسى. ابحث عن نشاط رائع لم تقم به من قبل على Groupon مقابل جزء بسيط من السعر.

I have always dreamed of traveling to Rome. You saved money for a year to try out your dream vacation. Go on that vacation feeling guilty. You didn't go into debt for her, you earned her. Or you can become a digital nomad and travel the world while working abroad.

Travel financially free

Life is made of moments. The best ones come from spending quality time with friends and family. While some products can help bring you closer to your family (like the weekly family video game night), most don't add much value.

Don't spend money, no need to pretend you have money.

8. Pay off debts

Some people will tell you that it is wiser to invest your money in stocks rather than paying down your debts. If you are an expert stock picker, this is probably true. But if you've never invested in stocks before, you could end up with more debt.

Many people feel the same thing after they finish paying off their last debt: relief.

If you have $50,000 in debt, even if you have $30,000 in cash in the bank, you can't really call yourself for free. You're still $20,000 in the hole.

While paying someone else isn't as magical as having money in the bank, it does bring you closer to financial freedom.

There are two main ways to pay off debt: snowball and avalanche. The snowball is when you pay off the smallest debt first. An avalanche occurs when you pay off debt at the highest interest rate.

Financial freedom debt avalanche

You decide what is best for you. But when I was working towards becoming debt free, I did a snowball effect. It helped keep me more motivated. Since I was able to clear my first debt, a $1,200 credit card bill, in just one month, my sense of accomplishment has helped motivate me to tackle a much larger student loan.

Since credit cards are no longer an issue, I will pay, on average, about three times the minimum payment of $300. In the end, it took about three years to finish paying off my student loans instead of the nine years I was allotted.

Paying off large debts increases your burden. After you pay off your debts, you see that the amount of money you have in the bank goes up. It feels great to watch the number go up (even if you have to watch it go down at first), and it gets you excited to keep growing.

9. Create additional sources of income

Well, at this point, you're probably thinking, "My debt is so much bigger than my salary, how can I pay it off if I don't earn enough?"

If you're serious about financial freedom, sacrifice some blood, sweat, and tears.

You might not cut the number 9 to 5. If that's the case, you need to step it up and look for money outside of your current job.

Some experts recommend having seven sources of income. If you have a 9 to 5 job, congratulations, you have one, and only six more!

Now, you can look at your income sources in two ways: active income (time to trade for money) or passive income (money that can keep coming in, even while you sleep).

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

Become a freelance writer looking for jobs on ProBlogger
Help the Employer as a Virtual Assistant in Jobs on Upwork
Gain new skills through online courses for entrepreneurs and monetization
Become an Uber driver
Help with household tasks in Task Rabbit
Find a Single Job on Craigslist
And more!
If you do not have a lot of time to dedicate to earning income, you can focus on increasing income streams through passive income such as:

Starting an Online Dropshipping Store with Shopify
Start your own custom clothing business on Shopify
Sell profitable content (blog, ebooks, courses, webinars, audiobooks, podcasts, apps)
Become an Affiliate
Buying and renting real estate
Invest in stocks
Fortunately, your seven streams can come from the same source. For example, if you are an e-commerce expert, the sources of income can come from setting up seven different stores. And remember: you don't need to start with seven streams, you can build on them over time.

10. Invest in your future

The last tip regarding financial freedom is an important tip. Let's say you follow the tips and recommendations in this article, get rid of debt, and increase your savings. That might be enough to help you now. But what if the unexpected happened? Will you be ready for that?

It's important to set aside money for rainy days, retirement, and (sorry you're awful here) in the event of your death to help ensure your family isn't flooded with funeral costs, debt, and taxes. Well, now let's go back to that happy place.

If you've landed this 9-to-5 job, talk to your company about adding a retirement plan, or check to see if you already have deductions from it. The discount is deducted before it reaches your account, so you never feel like you're losing money. It's great to check in regularly and see your savings grow.

Next, you also want to make enough money for the emergency fund. Some experts say $10,000 is okay while others say six months of your salary. And to be honest, these numbers can seem pretty high if you don't make a lot of money. So instead, start with a goal that you can afford — like $100 for your first month. And when you start earning active or passive income, start increasing your goal to $500 per month to $500 every two weeks and so on. If you overspend on credit and a high credit card bill comes up, don't use your emergency fund - focus on seizing more active income opportunities so you can pay them off faster.

The emergency fund is only for unplanned emergencies such as a tree crash into your house, a car accident that you need to pay for out of pocket, or a hospital visit.

By setting aside money for rainy days and retirement, you will be less likely to end up with what you are now: the desire for financial freedom.

Conclusion

Financial freedom can help you take ownership of your money and, most importantly, your life. It's about living within your means, being a little frugal, and making sure you spend money on things you really need like food, shelter, and even vacations (relaxation is important too, you know). By following the financial freedom tips in this article, you'll get closer to achieving the financial freedom you deserve. So take a look at those finances, build additional income streams, pay off that debt, and before you know it you'll be free.

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