Many people’s never-ending goal is to live debt-free and have all their basic expenses paid for through their income alone.
In today’s economy, many people live paycheck to paycheck and find it challenging to live the lifestyle they have always dreamed of. However, some are avoiding living paycheck to paycheck by pursuing financial freedom.
This article’s primary goal is to help people achieve financial freedom and live the life they always wanted. By the end of this piece, readers will know what it takes to achieve financial freedom and what steps they need to take.
People can achieve financial freedom in a couple of ways:
1. Living on a salary only
Living on a salary only is the easiest and least time-consuming way of achieving Financial Freedom and allows you to keep all your money for yourself.
This is achieved by working 9 to 5 or splitting your time between a full-time job and something else on the side.
2. Living off investments
Living off investments is the most common way of achieving financial freedom.
This is achieved by working for someone else and investing a large proportion of your income into retirement, property, or stocks/private equity.
3. Living off side hustles
Living off-side hustles only are the most demanding and most time-consuming way of achieving financial freedom.
You need to work hard at a day job, side hustle, and invest almost all your extra income.
4. Live Below Your Means
Living below your means is the easiest step to achieving financial freedom and can be done from day one.
This is achieved by sticking to a budget and only spending on things you need.
A budget is a list of all your monthly income. You will want to subtract all your expenses and create a balanced budget. By setting aside a small amount of money in your budget for savings and paying your bills, you will be able to save up enough money to reach financial freedom. Here are a few tips to get you started:
- Always create your budget every month, no matter what. Even if you are living on salary only.
- Don’t forget your utilities, electricity, water, and phone bills.
- Save for the future by dividing your income between short-term and long-term savings.
6. Get Free Financial Planning
People always want to work on a budget but never do it because they are too busy. It’s like having two or three days to complete a massive project but never doing it because you don’t have the time. You can find a lot of free financial planning guides online.
In conclusion, having financial freedom allows you to live the life you always dreamed of. You can focus on what really matters. Understand the relationship between time and money.
If you want to be financially secure and want to achieve financial freedom, you will need to spend less time on the job.