Financial freedom can sometimes feel like an oasis in the middle of the desert. There it is shimmering away somewhere in the distance, but the minute you start to get close, it disappears. If you don’t have the right strategy in place, you could end up striving away for years and years only to find that you have got no closer to your goal. Though there is no single route to financial freedom, there are a few steps that you can take so you start moving in the right direction.
Create A Plan that Will Get You Where You Want to Go
Like most things in life, good things start with a good plan. Financial freedom is the long term goal, but you will need to set yourself a series of subgoals to actually get there in the first place. Think about ways in which you will increase your income over time, whether by switching jobs, getting involved in the stock market or making a sound commercial investment. Think about how you will control your spending habits, as well as paying off any outstanding debt. Work out how to up your savings and define your long term financial goals.
The Art of Delayed Gratification
In an instant gratification culture, the art of delaying this is one of the best financial tricks that you can teach yourself. Realise that the sacrifices you are making now will benefit you in the long run. Again, make a plan that details all your expenditures and work out the things that you can cut back on. Accept that the sacrifices you are making now are for your long term success in achieving financial freedom. If there are people in your life who negatively influence your spending, make a commitment to ensuring that this doesn’t happen in the future.
Keep Moving Forward
Steadily increasing your income while keeping your spending level the same will pay off literally in the long run. When people receive a pay rise, they often see this as an excuse to spend more money even though it won’t significantly improve their quality of life. Always try to improve your skills over time so you are more valuable to employers and look out for better opportunities wherever they may exist.
Save Money Regardless of Income
Even just putting a little aside every month can make all the difference in the long run. Many people say to themselves “I’ll start saving money when…” But the problem is that “when” never comes. Even though savings accounts don’t offer a huge amount of interest these days, the more you have, the more likely you will be able to generate some sort of passive income for yourself.
Diversify Your Income
In today’s sharing economy, people can make money in more ways than ever. For example, many people are making extra cash by renting out a spare room, offering storage space and renting out their driveway to name just a few.
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