Everyone wants to become financially free. However, not all can commit themselves to do the necessary steps to achieve it. The reality is that the road to financial freedom isn’t straightforward. Trying to live our entire lives debt-free is almost impossible. This is despite the fact that you may be earning a decent income and are still single. We all make gratuitous purchases often. Before we knew it, we are spending more than what we are actually earning.
The good news is that having you here means that you finally desire to take action with your finances. Perhaps you woke up one day to the surprising multi-figure debt that you are in. Hence, you’re now aiming to become financially free. And I would like to congratulate you for taking this first step. Not everyone acknowledges the debt pit that they have to get out of…
#1 Step to Become Financially Free: Don’t Be Afraid of It
Want it more than being scared of it. Many people don’t achieve financial independence simply because they are afraid to make the required changes in their lives. Commitment and action are what separates the doers from the dreamers. Financial freedom doesn’t happen overnight. You must have a detailed plan and stick to it. You also don’t need to go all out initially. For example, when it comes to saving, you don’t have to put half of your paycheck right away. Perhaps you can start with a small amount like $50 every paycheck and then increase it gradually.
#2 Step to Become Financially Free: Create Steps to Follow
You can become financially free by creating and sticking to a series of steps. These include:
- Controlling how much you spend
- Finding ways to increase your income
- Paying off your credit cards
- Knowing your savings patterns
- Identifying your investment goals
- Defining personal long-term financial goals, and more!
#3 Step to Become Financially Free: Commit to Living Beneath your Means from Now On
Mind you, this isn’t self-deprivation. This is simply understanding how much you can live off. This is a critical step in achieving financial freedom. You will get all your spare cash from committing yourself to this step. This can be uncomfortable and downright painful but think of delayed gratification as a very sweet term. Some ways to do this step include buying clothes at thrift stores, passing on a vacation, etc. Just imagine how enjoyable it would be to do the things you want when you know that you are already debt-free.
#4 Step to Become Financially Free: Surround yourself with successful people
Surround yourself with people you want to be like. If you want to be financially free then have financially free friends.
#5 Step to Become Financially Free: Keep Moving Forward with your Career or Business
Do not underestimate the power of investing in yourself in helping you achieve financial freedom. It is, in fact, one of the best ways to get a good return on investment. When you improve your skills and grab opportunities for growth like promotions, you are increasing your value to your employer. If you run a business, making sure that you always take a step higher can help you leverage your profits.
#6 Step to Become Financially Free: Always Save Money No Matter How Much You Earn
A lot of people will skip this step mainly because they think they don’t earn much to even save a part of it. This attitude is totally wrong! There is no perfect time than now. If you are not used to saving, start small just like what I have previously recommended. The important thing is that you acknowledge the importance of having savings. Excuses are your only obstacles.
#7 Step to Become Financially Free: Create A Safety Net
This step is more popularly known as the “emergency fund”. If you are presently living from paycheck-to-paycheck, this is something that you must work out first. Aim to save enough money that can cover a 30-day’s worth of expenses. Once you achieved this, work on another 30 days until you have enough amount covering an entire 6 months of expenditures. This way, you have something you can quickly pull out once the need arises instead of relying on your credit cards or owing somebody.
#8 Step to Become Financially Free: Start Investing
Once you have achieved your 6-month safety net, it’s time to consider investing. Remember, one of your goals is to make your money work and earn for you. This means that you should not relax when it comes to saving. Having an emergency fund should only make you feel at ease with whatever happens. However, you should still save for investment purposes. Talk to a Financial Adviser about this matter.
#9 Step to Become Financially Free: Pay Off Your Debt and Stay Out of Debt
It is not easy to achieve financial freedom when you are locked to your debt obligations. So, you must make sure that you pay your debt regularly. I always suggest my clients to eliminate their lowest debt first and work their way up to paying their highest debt. Once you already paid off all your debt, stay out of it. Never use your credit cards again or better yet close it all down. This will push you to pay cash on all your transactions and to live within your budget.
#10 Step to Become Financially Free: Regularly Refocus Your Goals
It is very easy to lose sight of your financial goals especially when difficulties set in. So, I suggest to always refocus your goals and stay motivated. Renew your commitment every single day.
Work with A Financial Adviser to Become Financially Free
There are things we cannot do on our own. This can be due to lack of knowledge or need for guidance. One of these is working our way to becoming financially free. If this is the case, it is best to seek professional assistance. Book your 1-on-1 Coaching Session with me today and let’s map out your road to financial freedom!