How to Achieve Financial Freedom

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Having enough money that can be used for savings, investments, and to live a decent lifestyle for ourselves and our loved ones is what can be said to be achieving financial freedom. However, achieving it is a dream for many, and we all work hard in our lives to make this dream come true.

What pushes us back to achieve financial freedom are debts, basically financial burdens that can make us a slave and hamper our happiness and peace by consuming a large part of our income. Apart from that, financial emergencies, overspending, and other issues that keep us from achieving our goals.


 

 

How can we do it?

Setting financial goals, clearing debts, tracking expenses, and a well-planned investment strategy can help us achieve financial freedom. However, it takes total dedication and regular practice to achieve the goal sooner. It is important to start by making a concrete plan to break free from the chains of debt and live a peaceful, debt-free life.

Recognize bad debts

Debt is borrowing money from a second party to meet your financial needs when you don't have enough. For many, it starts with a credit card, personal loan, student loan, car loan, and home loan.

Well, debts are never good to have because you have to pay them off with huge interest. But, still, if you are able to build an asset, or if you are able to accumulate more money from your borrowed money, it is considered good debt. While the loan / borrowing that consumes a large portion of your income is considered bad debt. Credit cards and other loans with higher interest rates and loans that do not give any property unlike auto and home loans can be classified as bad debt.

These debts are terrible and will severely limit your monthly cash flow, preventing your opportunity gap from being a force of financial freedom.

So if you really want to enjoy financial freedom, you need to know the difference between good debt and bad debt. Importantly, you need to pay off your debts with planning. The best debt is the one that is paid off comfortably and sooner rather than later.

Wealth building!

It can be considered the most important thing that will help you achieve financial freedom. The more you earn, the more capable you become of achieving your goals.

Wealth creation can be achieved through:

• Make Money: To increase your income, you can start taking freelance projects, part time jobs. You can also use any of your passions such as arts and crafts, painting, cooking, etc. to add extra income to your pocket.

• Spend less money: Even if you earn more and continue to spend in the same proportion, it will not help you. Spending less when done regularly can soon be reflected in your bank account, as you'll see more money there.

• Debt repayment: Paying off your debts can save you a lot of money that was previously consumed on IMEs. And if you manage to end your debt sooner, you'll save even more than you spent on interest.

• Savings: Always try to save from anywhere. To execute it perfectly even before you spend, set a fixed amount as your savings goal. Save that money, then start spending with the rest.

• Investment: It is a proven fact that savings are never enough to enjoy a financially free life. You have to use your savings and invest them to make more money. Doing this not only increases your money, but also makes your future financially secure.

Achieving financial freedom is very important to establish and maintain a standard of living. It secures your life financially and releases your tensions for the future.a standard of living. It secures your life financially and makes your tension free for the future.

 

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