The wealth of financial freedom can seem almost impossible to achieve, especially if you’re just starting out in the working world or have recently been laid off from your job. With all the responsibilities you have as an employee, student, or parent, it can feel like you barely have time to take care of yourself, let alone manage all the intricate details of your finances.
However, there are several ways to reach financial freedom faster and more efficiently than you may realize with just a little bit of advice and planning on your part. Here are 10 steps to find your financial freedom formula and achieve true wealth in no time at all!
1) Set your Target
Start by setting your target for financial freedom. How much money do you need to have coming in each month to cover your costs? This number will be different for everyone, but it’s important to have a goal in mind. Once you know how much you need, you can start working on a plan to get there.
There are a few different ways to approach this. You can either work on increasing your income or decreasing your expenses. Ideally, you’ll want to do both. For example,In my case, I have started this blog alongside with my job in a software house, because i have a target in my mind and I know that i cannot achieve that just with my job.
2) Take Stock of what you have
In order to find your financial freedom formula, you need to take stock of what you have. This includes your income, your expenses, your debts, and your assets in your possession. Once you know where you stand financially, you can start making a plan to get where you want to be. For example, you may want to set up an emergency fund in case or pay off some debt. One important tip that I want to give you for financial freedom is:
Establish an emergency fund- You should never spend money that you don’t have so it’s important to have some saved up for emergencies. Put this money into a high-interest savings account and just don’t touch it unless absolutely necessary or god-forbid any emergency.
In order to find your financial freedom formula, One thing that you need to do is declutter your life and your finances. This means getting rid of anything that’s weighing you down, both physically and emotionally. “Get rid of extra luggage for Travel.”
For physical clutter, get rid of anything you don’t use or need. For emotional clutter, get rid of any toxic relationships or bad habits that are holding you back. Once you’ve decluttered your life, you can focus on the next steps to financial freedom. This is very important to understand that you cannot hold everything and wish for success. Unlearn and Relearn ….. Keep that in mind.
4) Track your Spending
One of the best tips for financial freedom is to track your spending. Where you are spending the most? Is it worth spending on that? This will help you see where your money is going and where you can cut back. You can use a budgeting app or simply write down your spending for a month. Check out for the unnecessary spending at the end of month. Once you have a handle on your spending, you can start working on a plan to save money. Seriously, I have examined it for like 3 months now, and on estimate save around Rs. 7,600.
5) Set Financial Goals for the coming year
What are your financial goals for the coming year? Perhaps you want to save up for a down payment on a house, or maybe you want to finally pay off your student loans. Whatever your goals may be, setting them is the first step to achieving financial freedom as we have early discussed about setting the target.
What you should do is write out a plan of what needs to happen before you reach your goal, what material or input you need to have for the process.
Divide that goal into small milestones, that will make it easy for you to achieve and generate a sense of accomplishment and motivation with each completed milestone.
6) Save up for your Cash
Saving up for your cash is one of the most important steps for financial freedom. You need to have enough cash saved up so that you can cover your living expenses for at least four months in my opinion. If you don’t have four months worth of living expenses saved up yet, I suggest taking on freelance projects or finding a part-time job that pays more. This will enable you to save up for your cash faster. Learn any skill, invest your time for freelancing and healthy professional relationship.
7) Get a Side Hustle
As i have discussed in last tab, another tip for financial freedom is to get a side hustle weather it be freelancing, teaching what you know, investing cash in digital products, etc. This can help you bring in extra income to help you save up for your financial goals. Plus, having a side hustle can give you a sense of purpose and fulfillment outside of your day job. You can feel like having your own business. And finally, a side hustle will also give you more flexibility in your budget and life if something happens. Job is unpredictable, you should have another basket for your fruits.
8) Automate your Finances with apps
Start with your spending as discussed earlier. Track where you are spending your money using an app like Mint or YNAB. This will give you a better understanding of where your money is going and where you can cut back. Automate your bills and payments, you can use different apps for payment reminder, schedule your payment day-wise. Set up automatic payments for your fixed expenses like rent, mortgage, car payment, etc using same apps. This will not only save your time but also make you satisfy about your automated monthly payments.
9) Shop around for better Deals
We all want to save money, and one of the best ways to do that is to shop around for better deals. By taking the time to compare prices, you can ensure that you’re getting the best possible value for your money. There are so many apps, websites available online that will compare prices for you and give the best product with discounted price. It’s also important to avoid impulse purchases. Don’t purchase everything you find lovely or intimidating.
When we see something we like, it’s easy to impulsively buy it without thinking about whether or not we need it or have room for it at home. That’s why most experts recommend writing down a list before going shopping so you know what you’re looking for ahead of time and will be less likely to spend more than necessary on impulse buys. Believe me I am an impulse buyer, and still want to adopt this list habit for myself. While writing this article, I am still thinking about the Diesel Watch I am dying to buy.
- Also Read:
- Maximize Your Potential: 7 Daily Routine Tips for a Productive Day
- 5 Steps to Change Your Life for the Better
- Getting Out of Your Comfort Zone: A Beginner’s Best Guide 2023
10) Don’t spend money on things you don’t need
In order to achieve financial freedom, you need to be mindful of your spending. We have talked about decluttering, spending less and tracking your wish-lists. Don’t spend money on things that you don’t need. Focus on investing in yourself and your future. One of the best tips for financial freedom is to create a budget and stick to it no matter what. This will help you track your spending and make conscious decisions about where your money is going. The definition of financial freedom is the state of having enough income to cover your basic living expenses without having to rely on credit or loans.
Hope you achieve your financial freedom as soon as possible. Nothing is impossible bud! You are the best.