Summer Save Series: First Steps To Financial Freedom

Financial Freedom, the true magic words. The goal of financial freedom attracts people that want a chance to pursue their dream job, or just enjoy a less stressful, or retired life. To get you started on the road to achieving financial freedom, here are some tips below.

Why do you want financial freedom?

Before even starting your path to financial freedom, you need to really know why you want to achieve it. Most people aim for financial freedom because they want to stop doing a job they dislike or live off the money generated by savings. Others want financial freedom to paint, write, or travel. Most want financial freedom to eliminate the stress of money.

Make a Plan to Achieve True Financial Freedom

Getting onto the path towards financial freedom and staying on it is not easy. People who have successfully achieved their goal have done so with a real plan which helps keeps them on track and focused. A good plan should be able to adapt to changes such as a new job or a downturn in the economy, or an emergency. Five year plans for instance are best if you have a high paying job, or can save up to 90 percent of what you earn per year. That is a lot of saving. Don't think of the plan as a "plan" think of it is a fun, even make-believe dream. Then put deadlines and specific goals to that dream.

Save a Major Portion of What you Earn

Saving up to 80 percent of what you earn per year is key element when you want to achieve financial freedom within a short period of five years. Generally plans to achieve financial freedom within 10-15 years involve less saving less, but you should aim to save around 50 per cent of your total earnings per year. If you can truly stick to that amount of saving, you can be on your way to financial freedom.

Live According To a Budget But Be Realistic

Create a monthly budget for groceries, utilities and cut out unnecessary expenses. Importantly once you make a budget stick to it, but make realistic room in your budget for fun. If you don't, you will quickly fall off the path to financial freedom. Realistically incorporate into your budget coffee out, dining out, or online shopping. Everyone is different and everyone's path to financial freedom will be different.


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