How to have Financial Freedom?
Today, everyone wants to have financial freedom. Everyone wants to fulfil his or her dreams which may be small or big. Does everyone get a chance to achieve financial freedom.
Financial freedom in simple terms means to be free to do whatever you want to do and you always have money to spend on your needs and wants. It is also more than just buying something, it is a state of mind where you are free of tensions as money does not bother you. Unfortunately in some of the countries it becomes all the more important for women to be financially free as they are totally dependent on their husbands and they never have had financial freedom, it makes all the more important for them to follow the steps to be financially free. It is seen that the males have a total control over the financial assets.
Why is it that not everyone is able to achieve financial freedom?
Why is it that there is a small number of people who are able to do it, well, whatever it is, but the good thing is that today more and more people are able to achieve financial freedom. The entrepreneurial spirit or spirit to save and dream is leading to it. The rise in salaries and better business sense along with savings is leading to financial freedom.
Some people think that having more money is the answer to Financial freedom, but I know of a lot of people who have a lot of money but still are in Debt. Is it because they do not plan or they spend more than what they earn?
Financial Planning and a better financial sense is leading to more people achieving their goals. Financial Planners are also helping people. Today anyone can be financially free if he or she just makes up her mind and decided to be financially free.
There are many examples of famous people who earned a lot of money but they died miserably without any money as they never thought of becoming financially free.
Below are the 9 steps if you follow, you are sure to achieve financial freedom.
- Reading a good book which gives you knowledge and guidance for your years to come is a must investment. Till you do not have a dream, you will not want to work for it. The dream is given by reading good books as they give you ideas. My suggestion is that you read at least 5 to 7 hours a week. Buy or borrow good books. This way you will be able to read more than 10 to 20 good books in an year.
- Goal Making- Make your goals which might be short term, for a day or two, medium term for a week to a month, long term goals which might be for an year. Keep these three kind of goals on a paper and have a look at them daily. You should now work for those goals. Small small steps toward big goals which might initially seem to be big will not remain big once you start in a small way. You wish to be a blogger but do not know a,b,c of internet and web designing, well, start with small goals of learning the internet and I am sure that within an year you would be a good blogger and soon you would be making money. The problem comes when on first day you wish to make money and when you do not make money, you give up.
I know of a huge number of traders who come to stock markets to trade. They want to make money from day one without learning the strategies and way to trade. By the time it is one year, they have already lost half their money. Slow and steady wins the race, it is never in one go.
Procrastination is the number one enemy for majority of people. People tend to postpone things which they find are slightly tough. They would try to do lighter things rather than doing things which they should do. Every year millions of people on new year decide they will start doing Yoga, Exercise, Moring walks but at the end of the year, 90% of them have not even started it.
My suggestion here is that one should make a list of activities to be done daily on a slip of paper or on their mobile and it should be done religiously. They should try to live in water tight compartments, they should be knowing what to do daily. I have seen people wasting so much time in deciding what dress to wear in the morning rather than planning in advance what to wear next day. So one should make a daily plan and adhere to it.
Live in Now. Eckart Tolle rightly says that live in now. Whatever you do, you should think of that time only. Please stop thinking of what has happened in the past or what is going to happen in the future. Think only of Now and just do your work what you doing with full concentration.
There is a famous story of a father, mother, grandfather and a small child. The father goes to a doctor and says that he always feels weak. Doctor asks him some questions.
Doctor: Who eats the most in house?
Father: I eat the most.
Doctor: Who is the strongest in the house?
Father: I am the strongest.
Doctor: Who eats the least?
Father: My small child eats the least.
Doctor: Who is the weakest physically?
Father: My little child.
Doctor: Who is the person who never gets tired?
Father: My child never gets tired, he keeps playing.
Well, the doctor said that it is because you are always thinking of your past and future whereas your child is only thinking of the present and once you also start thinking of the present, you will not worry so live in present, that is Now.
Learn to appreciate everyone. Remember that the more number of people you know, the better it is. The more the network, the better it is. One never knows how he or she might be helped by someone in your contacts. In how to think like a millionaire and be one, it is clearly said that each person in your list has a potential to help you become a millionaire.
Look for an Ideal in Life. Everyone is a fan or someone may it be a sportsperson, a politician, a film personality, an army general, an artist , etc. Look at that person and try to find how that person achieved his or her milestones and how did he rise to that position. What were the steps he followed, how did he do them, was it given to him on a platter?
Once you have answers to your Ideal person, you will then be strongly motivated to achieve what you want to?
Have a proper Financial Plan.
Whatever you earn, a portion of it must always be saved.
You should always know your net woth and should be discussing it with your spouse and children so that all are on the same side as to reason of saving. Till children do not understand the reasons of savings, they would always feel it a waste of limited resources.
Always keep a record of your expenses.
Make a plan for your future needs like education and marriage.
Retirement Planning is another important milestone for Financial Planning.
Have adequate insurance so that your family is taken care of in case something happens to you.
Do write a Will which will take care of others when you are no more.
Give a proper value to Money.
No matter how rich or poor you are, you have a limited money available to you and your family every month. Every month, your money will be spent for needs which have to be fulfilled and wants which you want to do if you have spare money. The money from the want side should be cut to go for savings. The need money has to be spent on essential things like food, etc.
Your children should be part of budgeting the household expenses. I remember incidents where the children were part of budget exercise in their family, those children went on to do very good in life.
Never take Debt.
From business point of view taking the right amount of debt for leverage might be good, but from personal point of view, for a family, it is advisable not to take debt.
In conclusion it can be said that one should just start towards becoming financially free. It is no use collecting on the points which one should take care of. One can just start with points above and improve upon them slowly. Best of Luck for your financial future which is free of tension.