Financial freedom is the dream for everyone, and getting all we want is the best feeling everybody would want to experience. The vision of having a beautiful home, enjoying life moving around the world, and providing for our families is the most fulfilling aspiration ever. Today, people worldwide share life journeys about small businesses growing more prominent and turning people into financial giants. Many people post their wealth status on various platforms, which makes others feel the desire to get financially independent someday. The achievement does not happen overnight. There are things we need to do to get the best out of life. Some people think that becoming financially independent is only for the rich, which is not true since anyone can get to the top class of life regardless of how much money we have. It is all about what we want to be, how soon we want it, and why we need it. Unfortunately, many of us start the road to independence and give up along the way. To succeed, we need to remain self-disciplined towards our financial goals and be willing to commit to it, regardless of the challenges in life. Here are ways to get the financial dream come true.
- Spend Money on a Budget
Freedom road financial starts with a budget. Everything we do in life, whatever we plan to buy needs to be on a budget. Many people miss out on setting a budget and end up spending money on non-essential items. We need priorities and separate needs from wants. We need to set a budget before the beginning of a new month, include income and living expenses, and set every item with a name and an estimated budget. Also, ensure the income and expense equal zero, and track each penny spent per item throughout the month. Budgeting this way helps us to create a focus throughout the month. The monthly budget changes everything and gives us the financial freedom number we want. It helps us control our finances, track the expenditures, stay disciplined, and commit to the budget as a long-term strategy. Doing this gets us whatever financial goal we aim to achieve.
- Understand Our Level in Life
Knowing our starting point is a crucial factor to attaining financial freedom. We need to analyze what we have at hand, how much savings we have so far, and any debts. It is proper to compile the list of debts, loans, credit card mortgages, among other liabilities, including borrowed money from friends and family.
Get the total sum of debts, total savings, business capital, retirement plans, monthly income, and any side hustles. Once we have all the data at hand, it gets easier to know how to spend money for the next day, month, or year. It is a crucial step to take towards the journey to financial freedom.
- Think Positive about Money
We need to address the limiting beliefs about money, and it starts on the mind. It is what we think that we believe and attracts in our lives. The power of positive thinking takes out the power of fear towards achieving financial independence.
When we stay positive toward whom we are, what we want to achieve, and believe that we can make our dreams come true, it opens up our minds to think deeper and focus towards achieving the goal. We need to believe that regardless of our families’ financial status, we will make it. We also need to think positively, knowing that we have the talent, creativity, and intelligence to build wealth. Speaking positive words and maintaining a positive mind no matter the challenges we face in life will make us better. Some people think that making money is wrong, while others feel the guilt to become wealthy, which blocks the mind from making progress.
- Set Life Goals
We need to know why we need to be financially free, when we want to get it, what we need to do to stay focused, and what to do once we get what we want. Setting goals makes us stay on course, do what we have said we will do, and strive to get to the final destination. The more specific the goals are, the higher the likelihood to achieve them. An example of a goal could be, setting aside money to build a dream home after, or having a portion of our income channeled directly to the savings account every month without fail.
Another example of a goal is to create high expectations for ourselves with a time frame, which will push us towards achieving it no matter how long it takes. It makes us attain great financial strides more than what we could ever imagine.
- Create Strategies to Build Savings
Saving money is one of the challenges we go through month after month. It gets hard when we have to separate what to pay ourselves, cater to the bills and meals from what to save. That is why we need to start planning before the next month, by creating a plan of how much money we will need to keep aside.
Sometimes we get money weekly, and we don’t have to wait until the end month to deposit into the savings account. The earlier we do it, the more disciplined we get, and the more we avoid spending cash on unplanned activities. Achieve financial freedom by saving enough money consistently; however, small the money is. The smaller, the better, and the more it gets to a buffer.
- Pay Off Debts
Freedom financial network involves many aspects, including taking the first approach towards financial freedom by clearing off debts. Just because we want to make money tomorrow does not mean that we forget about what we owe others. Achieve financial independence by clearing off every unsecured debt, credit card balances with high-interest rates. We can’t get far with our financial dream when we owe others since all the income will be channeled towards clearing the debts. While paying back the money is not a joyful experience, staying in debt doesn’t give us freedom.
We can clear off debts, and once done, we comfortably channel the money towards savings, which provides us with peace of mind. Clearing debt has two methods, the snowball where we clear small debts and Avalanche when we pay off with high interest. Choosing what works best and sticking by it would be the easiest way to clear off and enjoy financial freedom.
- Implement Additional Sources of Income
Sometimes, the little we get is never enough income for our day to day needs, and we find it hard to stick to the set goals towards our financial dream. The road to true financial freedom may never be easy for the faint-hearted, especially when caught in between feeding the family, clearing debts, and saving money.
Our current work may never be enough, and we need to think creatively, get out, and look for extra cash. While setting up an additional source of income calls for sacrifice, sweat, tears, and sleepless nights, it is the best step to take. When we think of the fruits that it could soon bring forth, we keep pressing on. The additional source could be active or passive income, depending on the time and daily schedules.
- Spend Less
We need to stay within our means and not strive to live a life we cannot maintain. Freedom financial network needs us to get rid of what we do not need at the moment and living life one day at a time. Spending less than the income leaves extra money, which can be a great ladder to financial freedom. Focusing on long term goals and setting budgets is the best way to stay on course and help us spend less.
How to Report an Act of Fraud Towards Financial Freedom
Sometimes, when we have plans towards attaining financial freedom, we might meet all sorts of people and brokers across many networks, including scammers. The deal may look raw, but in dipping dipper, it becomes a suspicious activity that could cause us to become victims of investment fraud. Once we realize that we are a victim of fraud, we need to take the necessary step towards reporting such indecencies.
How to Report Fraud
Raise a complaint in writing to the broker and the manager in the legitimate entity. However, if the firm does not support the claim, the case may not work. Turning to regulators would be the next step. The regulatory resources to file the claim include Better Business Bureau, Federal Bureau of Investigation, the local District, and the Attorney Consumer Protection Unit.
Others are the National Association of Securities Dealers State Securities Regulator and Postal Inspectors Office. Remember, speaking up to the authorities and staying true to oneself is the best way to get defrauded money back and help others who could be victims of fraud.
Financial independence gives us all the freedom we need and makes us take full ownership of our lives. More importantly, leaving within means and taking it a day at a time will relieve us from too many life pressures and give us peace of mind to stay focused. The tips above are the road to financial independence. All that matters is to remain focused and dedicated to the goals set.
What is the 30 day rule?
Will-power and the word savings should be our allies in any financial plan. It is estimated that with this rule it is possible to save a lot of money. The desire to continue spending does not disappear, it simply delays consumption to the point where it disappears in some cases. To follow this rule the first thing is to be aware of having the will power to leave something once we have it in our hands and know that it is really not necessary or not. Then, it is advisable to write on a sheet of paper the desired object, the name of the store, and its price, as well as the date. We must place this paper in a visible area in the house, here is where the 30 days is the protagonists, as we must think during this time if it is absolutely indispensable to make the purchase of it. If by the end of the term, the desire and anxiety remain, reconsider buying it is an option, but, without any loan. This rule can be an advantage for those who apply it, as they can think about the price of the object, its usefulness if it is really indispensable, and it can also turn into a current lifestyle.
Do you know how to set up your financial goals for success?
Nowadays, the rational use of limited resources is persistent as a concern; however, due to the dynamic changes in the market environment, an organization’s survival is mainly based on its capacity to adapt and anticipate these changes. Consequently, accurate money management and strategic planning in the company become vital to achieving its success, since an inadequate strategy or wrong decisions can lead to serious problems and costly losses; therefore, having both elements would be the ideal solution, since the future turns into much more dramatic changes. For this reason, it should be taken into consideration to have:
- A clear motivation and purpose.
- Specific Objects
- A plan of action
If these tips are not present, the financial future is risky, as having a financial plan allows you to achieve your desired goals. Having a defined path guarantees optimal decision making. When you set realistic financial goals you can get on the road to financial success. Organizations should review their strategies to compete successfully and take advantage of opportunities or avoid the threats that time brings by creating innovative methods of action.
What is the difference between financial freedom and financial independence?
The difference between financial freedom and financial independence is not so complicated, financial freedom is having a passive and followed income that allows covering all the expenses without having to worry about some debt. In addition, it is to be perfectly stable and comfortable financially without having to work too much. Financial independence goes beyond that, it is another level of income where expenses are exceeded. Someone with financial independence is able to invest and have a big business as he wants. Also, It is a level where we can only worry about ourselves and not about the financial situation, where we can early retirement and that depends on how we manage our net worth.
What does financial freedom feel like?
The feeling comes from whoever achieves it, and it is always different. Many people feel happiness and others’ sadness, depending also on the strength and mental stability of the one who achieves financial freedom. However, the feeling of financial success is inevitable. Having true financial freedom can make you feel freer with more peace, more time, and less stress. People can feel a lighter burden and the possibility of establishing new challenges while being financially free. In other words, when it comes to financial freedom, you do not have to worry about debt as there is enough income that is supposed to cover all the necessary expenses. However, it is necessary to have financial knowledge in order to control the expenses, to build up an emergency fund and a good cash flow management to keep the personal finance in check.
Why is financial freedom important?
It is always important to arrive at a point where everything is stable and without any risk of decay. Financial freedom matters to those workers with many ideas in their minds, with a lot of aspirations or for those who want to fulfill their life goals. Moreover, financial freedom is not just having enough money in the bank account, it is generating income with not much work to do, and it can be achieved by investing correctly. To continue with the question, this is important to have more time to focus on other projects or simply to spend and enjoy with the family. There are too many reasons why it is important to achieve financial freedom, but it is not an easy path as smart and effective decisions have to be made.