Becoming Financially Free in easy Steps
Having money isn’t everything, not having money is, and money is not happiness but it is not sadness as well. When a person doesn’t have money, there are after effects of it like frustration, pain, regret, and many more, when money isn’t in the equation of a person, every negative thing around such person is tied to the fact that there is no money even when money doesn’t have anything to do with the event. While being rich doesn’t mean you are living a life of no problem, being poor often make people tie all their problems to the lack of money. At a point, when you do not have to contemplate on the price of organic groceries as well as not quantify your doings based on money, then you are financially free and at that point, you then understand that money isn’t everything. At this point, money will not be the stress of your life rather, it will be a tool for getting things done.
A lot of people want to get to this position but they do not know how to get there, they do not know what to do to become financially free but in this post, I will share a few things I learnt from financially free individuals who are willing to teach others how to be financially free. As we continue in this post, I will share them with you.
The first thing to do when pursuing financial freedom is have a savings. When I say savings, I mean an emergency savings. Money that can serve you for about 6 months to 1 year when there is a financial set back. This money should be used only when things have gone completely wrong and this things will affect you if they’re are not sorted out immediately.
Another thing to look at is debt. Debt can be very poisonous and very disastrous. It eats into the financial freedom of anyone thereby making them financially weak. A debtor only works for the creditor, so when there is a debt to be paid, the entire money at hand will be valued at minus the debt. Debt has become the common thing among people who live alone which is a bad financial target. First, tackle the highest interest rate so the interest do not overwhelm you or you tackle the smaller loans first before tackling the bigger ones.
Invest in businesses, stocks, bonds and real estate. This is the next place to invest in if you want to have your money work for you. While you have a paid job or do other things to earn money, investing will help increase your income and help you become a person that has finance working for them.
Saving for retirement is another important thing for a person who wants to be financially free, so being worried about life after retiring won’t be visible. When a person plans for their retirement, they just enjoy every moment of their old age as both their investments and their retirement programs pull in money for them.
With this, a person starts to enjoy financial freedom and financial freedom is a position a person is when there is enough to fund for every necessity and still have enough to save.