What do we mean by financial freedom? Most investors and experts use the term, but not everyone knows what it really means. It is pretty simple, though. We can define financial freedom as the ability to live life on your terms without having to be worried about going broke in the future. So, everyone wants to be financially free, right? I believe the answer is yes. But then again, how do you know when you are financially free? Do you know that breaking your goals into smaller sections can help to keep you in line with these goals and make them even more achievable and in less time?
In this blog, we will be discussing ten ultimate steps you need to take in order to achieve financial freedom, so fasten your seat belt because it is going to be a jolly good ride.
My name is Antoaneta. I am an investor and enthusiast for financial freedom. It is my pleasure to present to you once again exciting content from my platform. Have you subscribed to my platform? If yes, then you are in luck. But, if no, I urge you to do so. My platform is well known for providing information that guarantees its subscribers’ financial freedom and general health. I also have a large Facebook community which I suggest you join. You can do so by simply joining my Facebook page.
So, without much ado, let us go straight into the business of the day. As I said earlier, we are looking at the ten levels or steps you need to take in order to achieve financial freedom. The tenth level is a bonus point for you as a reward for staying till the very end. It is very achievable, and I am confident that following these outlined steps will get you there. So, what are they?
Save some money for rainy days
Every move made to financial freedom must always start with saving. Saving is basically the first step you must take to be financially free. If you spend more than you earn, it is impossible to save. If you cannot save, what would be used to make any investments in the near future? Poor money management is really not a good thing. The truth is many unforeseen circumstances will come up once in a while, and it is the money you may have saved over time that will help you to solve these problems. Some of these problems may be medical bills, accidents, car repairs, and even a loss of income, so the money saved is not only for investments; you can call it a bailout fund. Having money saved up somewhere might actually be a lifesaver in many situations.
Having enough to not spend all your time working
Everyone desires to work only when they choose to. Unfortunately, not everyone reaches that level of financial freedom. Financial independence and freedom of time go hand in hand. Nothing is as good as doing what you love to do without having to sacrifice your financial freedom in any way. There are ways to achieve these, which include working remotely, working shifts, working part-time, or just being a passive income earner. Financial freedom and freedom of time will be a lot more achievable for those who are self-employed than those who work for people.
Saving and still having enough to be happy and comfortable
Some people think it is impossible to live a comfortable life and still have good money saved up for a rainy day. This is a general misconception, and I wish to change that. Both are achievable, depending on how you make your budget plans. There is a feeling of fulfilment that comes with both. Even though you might still need to work to acquire more wealth, you will not be under so much pressure if you can do these two things comfortably. The money saved up can be used for long-term investments or whatever that may bring you more money, pleasure, or even both. Well, all these hinge on your ability to live a moderate instead of an extravagant lifestyle.
Have enough money to make working optional
The burden of 9–5 jobs can be very heavy, and not everyone can afford to work when they want to. Some people might have been working these jobs for a while but saving enough money to quit these types of jobs can be a huge step toward financial freedom. Having enough may mean you can quit your job indefinitely or for a little while, but it would feel good to know that you will not go broke even if you do take a break. The time taken can be used for a lot of self-improvement moves like starting a business, advancing your education, or venture into another field of interest you may have.
Having enough to do those things you love to do
Now, this is one of the most interesting parts of financial freedom. Everyone wants to do what they want to do when they want to do it. However, it is what you did in your youth that will determine that. If you put in all the work at an early stage, the odds will always be in your favour to enjoy financial freedom. It may be called financial freedom, but you need to work hard enough before you are truly financially free. It just does not come to anyone who wishes to have it without the presence of hard work and dedication.
Having enough to retire comfortably
Everyone will retire at one point in their life. So, you have to think about and envision what it would look like when that time comes. You also need to ask yourself this question: What am I doing to live this dream life? The goal is not to work forever, so the plan will be to have enough for that time when you will be unable to work for whatever reason. There are many choices to be made, and it is up to you to make the right ones.
Having enough to retire when you feel like it
There is a slight difference between retiring gracefully and retiring when you want to. Some people retire because they have worked for the stipulated amount of years. Others retire because they feel comfortable enough to. These two things happen to depend on the choices we made while we were working. If you indeed retire when you want to, will you be able to maintain a comfortable standard of living? If you retire early or comfortably, it is worthy to note that there may be little or no change in your standard of living, unlike those who retire due to old age. As a young retiree, you might want to still engage in road trips, parties, picnics, sports, and other activities that may be capital-intensive. Streams of passive income are one of the major reasons for early or comfortable retirements. The main aim of retirement is to enjoy the rest of your life, having toiled through the earlier parts. So, what is the point of retirement if you are not comfortable enough to enjoy it?
Having enough to give your children and family the life they deserve
We all need money to live life, so we have to work. But do you know that almost half of the wealth you are trying to accumulate as a parent is to make sure you and your family are truly comfortable? Yes, everyone finally wants to be a parent, and nobody wants his or her children to go through what they may have gone through. That is one of the reasons we need to be financially free.
Saving enough to be able to make investments for your kids
Yes, you need to be financially free. You need to save money, you need to have a business, and you need to do many things for the future. But who are the future, if not the kids? Even after giving them the life they deserve, you still need to make sure that they have something left when you are gone. Nobody lives forever, so it is always fair to make plans for the future generation.
And for the bonus point, we have
Having more than you can ever spend in your lifetime
I believe this is the ultimate goal of financial freedom; having more than you can spend in your lifetime. Being rich may keep you comfortable, but being wealthy is a whole different ball game. If you want to attain financial freedom, strive to be wealthy and not rich. This is the mindset of someone who wants to be financially free.
In conclusion, financial freedom is achievable, as we have seen so far. The levels of financial freedom mentioned above come in no particular order, so it is possible to do all at once. Make a bold step today, and watch yourself become financially free in no time.
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Originally published at https://lifestyletipsbyantoaneta.com on April 9, 2021.