What is Financial Freedom? How to Gain Financial Freedom in 6 Steps?
What is Financial Freedom? Achieving financial freedom is the goal of many people. Financial freedom means having enough savings, investments and cash to meet the lifestyle you want for yourself and your family. Many people want to retire early or live without worrying about their livelihoods, which is only possible with the concept of financial freedom.
How important is financial freedom to you? Determine this first. Accordingly, write down how much should be in your bank account, your standard of living and at what age you should achieve your financial freedom. The more specific your goals are, the more likely you are to reach them.
So make yourself a plan for this purpose and review it often. Here are some ways to stick with your plan.
How to Gain Financial Freedom in 6 Steps?
Someone who has heard about the concept of financial freedom for the first time may find it difficult to understand what it means. Defined as early retirement or economic freedom, the concept of financial freedom is much better understood.
Knowing that you came to life as a slave will not be a good experience. When you find out that you are a slave, you’ll see scenes from the Hollywood movie: Whip your back and you’re working on the construction of the Egyptian Pyramids! If the scene that comes to life before your eyes has relieved you a little, relax immediately. Because it will be annoying to know that in ancient times slaves had more social rights than you!
After doing the hardest and making the first decision, the question “How much money? Financial Freedom” is asked. In order to walk the path of economic freedom and achieve success at the end of the road, the goal must be well defined. It is important to be able to set the target well. Because setting a low goal and saying “goodbye” to the boss can lead to an unprepared entry into an irreversible road, and setting unattainable goals also risks deterring the road. “Well, how much money will I need?” There is only one consistent way to answer the question: keep a balance of income and expense and reach an average expenditure cost that will be needed annually!
The First Clause of Financial Freedom
The first thing you need to do for your Financial Freedom is to follow your dreams. Once you come to life and it is up to you to strive correctly and morally. Always move forward with your dreams to improve yourself and make the best of your life.
In ancient times slaves had salaries. Working hours were fixed and there were days off. The script sounds familiar to you, right? Nowadays, be it white collar or blue collar. Every salaried worker is actually a modern slave. You do the job requested from you within the hours requested from you and against the price offered to you. There is a high probability of losing your job when you are unable to do your job or your performance drops. Financial freedom is the name given to voluntarily ending this process. If you are lucky, start by accepting that it is possible to get rid of the yoke instead of accepting to work on the terms and conditions imposed on you until you retire.
Determine How Much Money You Will Save
After doing the hardest and making the first decision, it is next to ask the question “How much money? Financial Freedom”. In order to walk on the path of economic freedom and achieve success at the end of the road, the goal must be well defined. It is important to be able to set the target well. Because setting a low goal and saying “bye bye” to the boss can lead to an unprepared entry into an irreversible road, setting unreachable goals also carries the risk of deterring the road. “Well, how much money will I need?” There is only one consistent way to answer the question: keep the income-expense balance and reach an average cost of expenses that will be needed annually!
A good start to save your expenses by making a simple Excel spreadsheet. Seeing your spending both reveals unnecessary expenses and shows how high unnoticed expenses can reach. Although a needs list of almost a year can be determined with this method, investors set targets based on the minimum wage in practice. For example, possible targets such as 3 minimum wage passive income per month or 30 minimum wage passive income provide the necessary motivation to enter the path of financial freedom by gaining a long-term perspective.
Identify the Path to Financial Freedom
To answer the question of how to gain financial freedom, you will need a consistent plan. Making a good plan will not be as easy as you think!
The first thing you will need in the plan, which you can call “Escape from Business Life” or “Early Retirement”, will of course be your goal.
Considering you are reading this article, we assume you have taken care of the previous step and we assume you know what the amount is in order to retire. While preparing the plan, you will need one more thing: Investment!
Spend your right savings correctly
Now you know how much money you need to earn a jubilee from business life, and you’ve figured out how to make that money. By investing, your new slave now knows how to make money and you can’t wait to get started. Little problem left to implement the plan… Where is the money?
To start investing, you need idle money, money that is not needed, so to speak. To get the budget you are planning to invest in, you need another good plan. For salaried employees, this plan is simple: Savings!
Although saving may seem like a simple idea, many people who have never felt the need to save in their lives and who have eaten their earnings ask, “What is saving?” Says. He won’t be able to stop asking. Your savings are simple for you. Saying goodbye to business life is the only way to find the money you need after your financial freedom calculation!
Don’t Waste Your Time, Manage!
Those who do not appreciate the value of time cannot help but ask what the clock does in material freedom methods. Time is perhaps the most important variable of financial independence. It controls everything that controls time!
Okay, we admit that our statement is quite ambitious. This sentence we use to explain not to waste time is basically not so wrong. Time will always support you as you walk the path of financial freedom. The biggest support is “Time and money”. Remember that you lie in the proverb.
Each of us has different free time a day, and we tend to kill those hours by browsing smartphones. It will be very interesting to know that this trend goes beyond giving us laziness and distracts us from financial independence. Most of us say, “What am I doing, have I spent money?” will ask. The key is not to spend money, not to make money!
Remember that discipline will set you free, not your school grades
We have listed 6 items that answer you point-to-point to the question of how to gain economic freedom, and we come to the most important item! We are aware that every factor is important, because our aim is to wake up early every morning and say goodbye to our business life. Without further ado, we arrive at the final point: Discipline to stick to the plan!
Discipline will be your biggest assistant on this path. Habits that are not very enjoyable at the moment, such as saving, investing, working to learn financial issues, are not subjects to be addressed without discipline. If you stick to your plan with discipline, you can witness that the goal of financial freedom is on the horizon every year.