Achieving Financial Freedom
Just about everyone dreams of a day that they will achieve financial freedom. Of course the results of this can look different to each person. Sadly, the vast majority of those that wish to achieve this goal in their lifetime believe that it is just a dream. The reality is that if you take certain steps in your life and believe that it is achievable there is a much higher likelihood that you will get there. Here you will learn about different steps that you can take towards reaching this goal as well as the ways in which you must change your thinking in order to be truly financially free.
The very first step that is necessary is to fully understand what you are looking to get out of your life. Everyone has a wide variety of goals, but few achieve them. This is because they have not taken the time to map out exactly what they want from life and what they will do in order to make those goals happen. Without a solid plan of action it is almost impossible to make any progress.
Some people actively do this for their education or making a major purpose, but neglect to realize that it can be applied to every move that they make. The more detailed the plan the better, yet one has be to ready and willing to overcome any obstacles that may arise and change their plan accordingly. The more time you invest into your plan and taking action steps the more likely it is that you will get to where you want to be in life.
When creating your plan it is ideal to include both short and long term goals. Some of the short term goals are going to be the ones necessary to achieve the long term goals. However, many of them could be unrelated or not exactly a direct link. For example, a short term goal that isn’t directly linked to one other goal could be ensuring that you make time to eat healthy.
While this goal may not seem directly related to any other goal other than being healthy, it actually can help you to live your best life and be in the best mental state possible in order to achieve everything else that you intend to. Simply having this mapped out will help you to be more mindful about how you spend your time and help towards changing the way you think about your time, money and personal aspirations.
Become Financially Free
One of the most common ways in which people become financially free is by becoming self sufficient. This typically means taking on the role of entrepreneurship. When one has to rely on another’s business in order to earn an income it is nearly impossible to achieve financial freedom. This is because that individual is profiting not only off the product or service that they provide, but directly off your labor.
Depending on the industry, your company could be making many times what you make off of the work that you do each and every minute. By taking control of your labor you can instead earn what you deserve for the skills, knowledge and experience that you possess. Of course, you could also take on a portion of the earnings produced by the labor of others as well.
Financial freedom Through Entrepreneurship
Becoming an entrepreneur can be intimidating, with many believing that it is too high of a risk to take in their lives. This is the type of thinking that keeps so many people from fully realizing their potential. It isn’t only about taking action, but having the state of mind necessary in order to do so. Of course this is a risk to take, but in order to achieve your dreams you must see this risk as being lower than the risk of spending your life being tied to others, earning more for them than you are earning for yourself.
It isn’t an easy transition to make, but when entrepreneurs are asked how they were able to reach for their goals they stated that they knew they had to take risks, put themselves out there and want more than what they were getting out of the work that they did each day.
In order to become an entrepreneur it typically requires being willing to make sacrifices. Those that are successful that started out on their own with little to no help report that they made major changes to their lifestyle. In our culture the consumption of goods and services is considered a mark of success. Falling into this, however, leads to so many spending their free time and money investing in others instead of themselves. This again is where changing the way in which you think is critical. Instead of thinking about wants, most successful entrepreneurs switching their thinking to what they really needed.
Manage Your Spending
Take some time to consider everything that you purchase on a daily, monthly and yearly basis. This could be everything from the coffee you buy each day on the way to work to the subscription services that you use. While that coffee may taste delicious, the ultimate test is whether or not you could save a significant amount of money each year by not making that purchase. When you add up all of the things that you purchase that you do not really need chances are that you will find that you are spending thousands upon thousands of dollars each year that could otherwise be investing in your own future.
The key is to think about money in a way that you wonder what it could do for you instead of for someone else. Thinking about the value that you get from the purchase can help as well. For example, you could make that cup of coffee at home that is just as delicious for a small fraction of the cost that you are paying each morning.
You are effectively making someone else rich while losing potential for yourself. Changing the way you think about money can be extremely difficult, but with intention and dedication you will soon find that you don’t recognize the person that once had wasted money on things of little value.
Create a Budget
Create a strict budget and remove the fluff purchase from your life. You can start by writing down every single purchase that you make for a month strait. Separate the items that you purchased that you did not actually need or do not create a true value to your life or future. After you add all of those purchases up, multiply the number by 12.
That is how much you could be putting somewhere else to work towards a better life. Some may argue that everyone should have some luxuries in life, but those are the people that focus on the here and now and will never achieve the financial freedom that you will by making the hard, but necessary changes. These changes now will mean rewards multiple times that value in the future.
If you do not believe that you have the skills to be a business owner or simply are not interested in taking on that task, there are other ways to just as effectively create your own passive income. Chances are that you have heard of this term, but didn’t believe that this was something that could apply to you. This is one of the most effective ways to achieve financial freedom in your life. Just like becoming an entrepreneur, it will take time, dedication and sacrifice, but the rewards will grow over time and definitely be worth the additional effort.
Financial Freedom Investments
There are many different types of passive income that can be generated. They come with different risk levels, which of course should be considered before you take a leap into investing into them. One of the most common is investing in real estate. This can include purchasing homes, businesses or even just land that has the potential to increase in value over time.
When it comes to purchasing real estate, the passive income comes from then leasing or renting out the spaces you own. This of course creates a risk as the property might not rise in value in the time that you wish to sell and tenants inherently come with some level of risk when it comes to how they will treat your property.
Passive income can also be generated by investing in stocks that offer dividends quarterly. In most cases people who take this route then reinvest those earnings so that their money is always working to generate more. Again, there is risk here as the economy does go through ups and downs by nature. Knowing your risk tolerance and playing a long game can lead to amazing rewards.
Just be sure that you understand the market well enough to play the game or use the services of a money manager to be sure that you are best hedged against economic trends that could lead to significant loss. Again, there will always be risk involved, and you must be willing to take risks in order to reap great rewards, but being intelligent and diligent about how you do so can make a huge risk much smaller than it might seem otherwise.
Reaching Out For Mentorship
As stated above, changing the way that you think really is a critical component. In addition to changing the way that you think about your time, money and actions, you also have to change the way that you think about your personal relationships and the interactions that you have with others.
Every relationship, whether it is a friend that works in another field or a family member you know has achieved success, has the potential for greater rewards than you likely are taking advantage of. Of course it is selfish to only think about others in regards to what they can do for you, but too many do not do this enough.
Take the time to ask others how they achieved their success in life. Chances are that they are more than happy to share their experiences with you. Think about how your friends and family may be able to assist you in reaching your goals. These changes in relationship dynamics not only help you, but can help them as well.
Those that know how to network and build strong, symbiotic relationships tend to be the most successful. The added benefit is that you already know these people and have created a relationship that involves trust and mutual respect. Utilizing each other’s skills is actually just a way to build upon that for the benefit of everyone involved.
Take some time to consider the most successful people that you know of. Not just those that you know personally, but those that are known around the world. Learn about what makes those people different from others. Chances are that you will quickly realize that they are different in the aspects mentioned above. They make their money work for them instead of working for their money.
They are mindful about each step that they take in life and how they spend their time. While they may enjoy many luxuries now, they likely didn’t start out that way if they are self made. Knowing the traits that lead to success is essential so that you can work towards making those traits part of you and reflect them in your habits each day.
Finally, take the time to read about those that have achieved the goals that you have your sights set on. Making changes in the way that you live your life can be very difficult. No matter how badly you want to change, you still need to do things that will naturally move you towards a better version of yourself.
By reading about those that are where you would like to be someday, you will be learning new habits and ways of thinking. Through that you will find that moving towards financial freedom is easier than you likely had thought which will help you to make the right decisions at each and every turn.