Still today many people are struggling to lead a financially secure life due to their spending habits, while some people are living comfortably without any worries; do you know the reason why?- Lack of Financial Freedom
What does Financial Freedom Mean?
Financial Freedom is a situation where an individual can’t suffer financially in case of emergencies. Their multiple sources of income will take care in case any unfortunate event happens. Are you living like that?-If the answer is No, You have to achieve financial freedom at thhe earliest to lead a comfortable and secured financial life.
Steps To Achieve Financial Freedom–
- Create Multiple Sources of Income– The foremost thing you have to do is build multiple sources of income. Legendary investor Warren Buffet recommends to build multiple income sources which he practises in his real life.
One thing to remind is if you are unable to work in any circumstances, your passive income would take care of you and your family. So try to create passive income through your interested fields. Your passionate field will create a good income source, try to utilise your skills
- Change Your Mindset on Money– Some people don’t give importance to money. They say- “Money is not everything”! Infact it is true it is hard to digest that every minute you require money to survive in this fast-growing world.
According to Karl Marx- “Human Relations are all about economic relations”. Every minute, every day you require money, then why don’t you give importance to money?
Instead of hating money as an evil source,Respect money. Think over the ways to create wealth to you and your family
- Prepare a Budget– So many people are worrying on the inflation in India. They regret their incomes are not sufficient to meet their needs in the 2nd,3rd week of the month! Do you know the reason why?Lack of budget preparation
Like our finance minister prepares budget for the economy, you have to create yourself budget specifying where your money is going out. You should record each and every expense and analyse where you are spending excessively and rectiify them in the coming months.
There are so many digital apps which automatically classifies each expense into concerned category. You can make use of them and analyse your spending habits and try to overcome them in the succeeding months.
- Pay Yourself First– After budget preparation, you may get an overview on the your expenses. Now you are aware of your income and your expenses; what next?
Set aside some money for investments. You should mandatory utilise that money for investments. By analysing your spending habits, you would be aware of where are you overspending; reduce them and utilise that money for investments
- Don’t Compare Your Financial Status With Others– Every individual’s financial status is unique. Their incomes and expenses varies according to their life style habits.
Comparing their lifestyle with you create unnecessary financial struggles. Instead of copying their lifestyle, thinkover the ways to create wealth much better. Instead of show-off your luxury, be live within your means.
Do remember warren buffet quote-“If you buy unnecessary things which you don’t need today, sooner you will have to sell your needy items in future”
So live within your means and never lay ladder to the sky by comparing with others lifestyle.
- Identify the Right Course of Job You were Interested– Some people work conditionally in jobs to survive in their life. Though they are not keen to work in that particular job, to meet the both ends they tend to work further.
Working without interest will not create excitement, instead they feel bore to work. To avoid this, first identify your areas of interest and try to put maximum efforts to gain job in your interested field.
By doing your favorite job, you won’t discouraged by the challenges, infact you show much interest to put maximum efforts.
- Don’t Save Money, Rather Invest it– Naturally Indians tend to Save Money. This was once done, but now the economy has changed.
Instead of economy growing to “Savings Mode” slowly the trend has been changing. Indians are preferring to invest rather than saving money.
Falling interest rates and high inflation makes Indians shift to “Investing Mode”as many social media platforms are creating awareness on investment avenues available in the market.
- Don’t be Savvy, Take Calculated Risk– Eventhough there are instances that by investing, you can create wealth, still today some are not ready to take risks.
Being savvy mindset they are not ready to take risk. But do remember-
“Higher the Risk, Higher the Possibility of Higher Returns, Lower the Returns, Lower the Possibility of Lower Returns”
By taking calculated risk, you could create wealth. Invest with small amounts in your intial years and up on experience, you would master in the investing field.
By following the above steps, you would get financially free and not bother on the unwanted expenses. You need to adpot the above financial habits to achieve financial freedom