Financial Freedom how do Everyone wants to be financially free and independent. But these things don’t just happen. There are things you have to do on purpose. It covers; setting up a savings plan, tackling debt and using savings to invest.
Establish a Saving Plan
Financial saving freedom consists in setting aside part of the funds for future needs. You are paying this primarily to yourself. It’s unfair to yourself to start paying everyone else after they’ve gotten paid or made money except for yourself. How are you doing it. You start by paying rent tithes debt utilities and other things until your monthly income is exhausted. So saving at least 10% of every income you earn is a great starting point. This is available to everyone as it is proportional to your income. There is no excuse.
What are you waiting for? Get started now. Avoid withdrawing these funds within a certain given period.
Deal with Debt and Profit?
We all want to use debt in a given period. I call bad debts as those that do not generate you income. A good debt is one that is used for productive purposes such as starting some income generating projects.
Bad debts increase your liability. Please note that I do not use these terms in accordance with accounting terminology. So an asset that is a liability is like a car or a house for personal residence. Why call these items as such when they are known as assets.
Excessive indebtedness should be avoided at all costs. If possible, reduce and eliminate debt. The savings plan mentioned above, if followed consistently, will lead you to financial freedom and independence.
Saving and Investments
Investing is better than saving. However, before you can invest, you need to have some funds first. Unfortunately, that’s where most of us have to start. There are several ways you can invest your funds. Ways can include doing business, buying financial assets, investing in financial shares, property, etc.
Investing helps you build your wealth, thereby giving you financial freedom and independence.
The three steps above will help you get started on your journey to financial freedom. Just follow them. Don’t wait long because there will never be an auspicious time. Work on your debt according to your repayment plan. Then invest your funds to grow your finances. These three steps will really set you on the right path to financial freedom and independence.
Thank you.