Attaining financial freedom is the dream and goal of a lot of people around the world. Financial freedom means having enough savings, investments, and cash on hand to afford the lifestyle we desire. You are financially free when you can provide your needs and your dependents’ without spending money from your future.
Why the lack of financial freedom
A handful of us fail to achieve this goal because the weigh of debt increases daily. However, financial emergent, extravagant spending, and other situations stands as a fright of our goals. Its experienced by everyone but these twelve habits can help straighten your paths.
Habits to attain financial freedom
1. Set Life Goals
Apparently, financial freedom varies for every individual, but goal setting is a must to all. Understanding your goals is vital, regardless of your definition. Be sure to outline your goals like;
- How much you should worth
- At what age-grade you aim to achieve it
- The lifestyle you want to live and the cost
These are just random examples. Your goal might differ from this because of your uniqueness. However, note that the more specific your goals, the higher your chances of achieving them. Make a backward count to your current age and makes a solid foundation of a financial mileposts and run a check on it at intervals. Outline all these in your goal sheet at the very start.
Note: Get yourself a goal sheet if you don’t have one and if you do ensure you move according to what you mapped out.
2. Make a Budget
Make out a monthly budget and be guided enough to stick to it, this seems to be the trusted way to sorting out all bills and ensuring that all saving is on track. It thereby becomes a monthly routine that empower your goals and guide you against the temptation to go against your budget.
Note: Sticking to your budgets means denying yourself some luxuries.
3. Create Automatic Savings
You come first in everything, hence, always take note of that. Make it a habit to always pay yourself first. Check if your employer offer any retirement plan and sign up for it. Also, make full use of any matching contribution benefit. It’s advisable to have a withdraw for urgent funds, we live in a world where some emergency are not avoidable.
Therefore, while making your savings, endeavour to pull emergency funds on your payday. It is critical to reduce temptation to barest minimum by not procrastinating. However, there is no particular amount of money set as a standard. It is up to you in whole entirety.
4. Pay off Loans in Full
Loans can drain all your effort to become financially free because it will keep increasing. Therefore, ensure to create a channel to pay up all mortgages and loans while it still has lower interest rates. Let me repeat this, loan is capable of denying you of financial liberty.
5. Start Investing Now
There is no better and positive way of growing financially than through investment. In the book Rich Dad, Poor Dad by the famous writer Robert Kiyosaki; “he stated that that why the rich keep getting rich is because they keep investing”.
The interest from this investment help build your little wealth but time is needed to achieve meaningful growth. Don’t go over your head by thinking you are the next Aliko Dangote because there can only be one. You can learn more online about how to invest, creating a portfolio which you can make automatic weekly or monthly contributions.
Note: Consider investing in different countries or geographical areas because of chance of better economic value. Don’t lose focus when you start seeing yourself achieving the style of other investors.
Many people seem to be doubtful when it comes to negotiations for goods and services. This is because of questionable factors on value. Beat off the cultural handicap, you are just on your way to hitting your target. Small business, most notably, tend to fall into unavoidable negotiations.
7. Continuous Education
Don’t be left out, get knowledge of the happening around you. Be ready to make adjustment where necessary because no one is an island. Stay up-to-date with financial news and developments in the stock market. Knowledge is also the best defence against those who prey on unsophisticated investors to turn a quick buck.
8. Proper Maintenance
Taking good care of property makes everything from cars and lawnmowers to shoes and clothes last longer. Since the cost of maintenance is a fraction of the cost of replacement, it is an investment not to be missed.
9. Live Below Your Means
Don’t indulge in living a flashy lifestyle. Have a mindset of living life to the fullest while spending less. In fact, many wealthy individuals have the habit of living below their means before rising to affluence. When you eventually attain the financial freedom you desire, you will have sustaining attributes. This isn’t going to be much of a challenge adapting to a minimalist lifestyle. It is neither a call to dump things you suffer to acquire, rather a way to protect them. Just making small adjustments by distinguishing between NEEDS and WANTS to live an healthy finance habit.
10. Get a Financial Advisor
Get a financial advisor when you have a substantial amount in your business or for your business. You should get a financial advisor to educate and help you in converting those tangible assets into cash.
11. Take Care of Your Health
Lastly, health is wealth, proper maintenance of your body is paramount. Some companies have limited sick days. Companies make it a notable loss of income once you go absent after using up your sick leave. Obesity and other ailments make insurance premiums skyrocket. Whereas, poor health may force earlier retirement with lower income. Ensure a maximum checkup to keep yourself going. Remember, we can not downplay the importance of self-care.
In conclusion, this list will not solve all your financial problems, but it will be an excellent aid to attaining financial freedom. It is, however, essential to be consistent in practising these habits. Lastly, your mindset about financial freedom matters and of course make more findings.