Why Financial Freedom is needed for Life?
Financial freedom is similar to getting freedom in life. It comes as no surprise that, many of us want to achieve this, but fail to do so.
What is financial freedom and how can you achieve it?
It does not have to be a very complicated subject, provided you know how to take care of your money, invest it well, live a frugal lifestyle, and take care of your health. Unfortunately, we are burdened with the spending, little saving, medical bills, and other issues that make us fail to be able to reach out goal.
You must set life goals
You must set life goals first. It does not matter what your age is. Perhaps, it did not occur to you earlier and that is fine. Fine points like how much you should save every month, by what age you should have a certain amount of money, and what kind of lifestyle you must have.
Unless your goals are specific, you may not be able to achieve them quickly.
Have a weekly or monthly financial plan
Many American households generally do not like to make weekly or monthly budgets. They just keep spending, until they are left with nothing. You would be surprised to learn that some people are retiring by the age of 40 or 50 years of age.
Is it possible, you ask?
Sure, they retire with several million, in their account. No, it is not ancestral wealth, but personal wealth. They struggled and worked hard from a young age. They know the value and worth of money.
Likewise, you too should make a weekly or monthly budget, where you plan your expenses. Cut down on what you can. For example, you’re eating out or vacations can take a back seat for some time.
Think of investing wisely
Now, the best way to make more income or money is to invest it wisely. There are tons of methods through which, you can invest.
How you can achieve that? For starters, you can think of the stock market or trading.
It is risky, but it pays rich dividends. If you are not into risks, then you can think of insurance policies that provide you with a decent income after a specific period of time. For example, you install $10000 for a period of 10 years and get back at least 5 times the amount.
Today, with the help of the internet, you can just about find anything you want. Though it may seem difficult in the beginning, there is no harm in trying out different things. Take a calculate risk.
A life without risks is a life wasted. Of course, that does not mean, you put your entire life savings on something, only to see it wash away. With some discipline, careful investment, and planning, you can achieve financial planning.
Keep an eye on your credit
For American and Canadian citizens, the credit of a person gives them the ability to apply for loans. In America, the average person acquires educational loans, home loans, car loans, and the like.
Hence, if your credit score were good and healthy, banks and moneylenders would gladly approve of them immediately.
So, once in a few months, just keep an eye on your credit score to make sure that everything is fine.
Negotiate your way through life
Americans typically do not have this habit to negotiate. They just happily sign on the dotted lines, without realizing that they could have got the same product, for a cheaper rate. There is no harm in negotiating through commodities, items, products, and services.
Whether you are employed or run a firm, negotiating over small things or items, should not make you feel cheap. You know the old trick of ordering materials or items in bulk to be able to get generous discounts on them.
In fact, you should feel proud of yourself, that you saved a few dollars in the process. Remember, a hundred dollar note begins with the first note.
Always save and then spend what is left
You would be surprised to know that one of the richest men in the world, Warren Buffet, leads a very simple and frugal lifestyle. In fact, he does not own a credit card.
When you are able to control your materialistic desires for greater possessions, that you are most likely not going to use for long, then you are digging a hole for yourself.
We are not telling you to avoid everything that you like and love to do, altogether. However, limit your needs and likes. You have to spend on what you need like food, clothing, and shelter. Nevertheless, limit your likes, for example, going outside too often, and likewise.
Take professional help from a financial advisor
At a certain age or point of life, you reach a stage where you would have a decent balance in your bank. Now, do not let it sit idle in there. You would want to invest it somewhere and make your wealth thrice or more of what you have.
It is possible, provided you are guided in the right path.
There are real estate investments, stock markets, funds, and insurance policies and so on. Depending on your financial requirements and thoughts, you can invest some of the money there.
The best way to do that would be to hire a financial analyst or lawyer who can help you out with it. As they are knowledgeable about the current market scenario, their advice is future gold to you.
Taking good care of one’s health
Well, you would have heard about the saying, health is wealth. Probably, you would have read about it, back in school. Just like you want to ensure that your financial health is good, your physical health is also vital and crucial.
How you may ask?
Whether you are employed or running a company, unless you are healthy enough to look after yourself, you can take care of your business, your job, your employees, and so on.
However, you may have a massive insurance policy; it is not going to benefit you if your health is not good. Hence, maintain a good lifestyle, act according to your age and limit you’re eating and drinking habits if any.
In summary
The above were some pointers that we thought would be very useful to help you out to lead an independent life with healthy financial freedom.
However, they may not solve all your financial freedom issues, they can help you stay away from major financial debts, that you will regret later on.