How to Become Financially Free

Financially free, is there ever such a thing? Does financial freedom really exist? Some people goal of having financial security. While others, financial freedom. But what does being financially free really means? And how would you literally become financially free?

Financially secured

The time when you are able to live your life by providing all your needs and wants.

Your needs: food, shelter, clothing, and healthcare.

Your wants: anything miscellaneous like toiletries, snacks, going to movies, eating expensive food at a restaurant, having a vacation, the capability to afford guilty pleasures, as well as collections, cars, or more.

Regularly or constantly providing yourself with these, ‘plus’ having an investment, a stable business or a secured cash flow may indicate that you are already financially secured.

 

Financially free

Is the time when you are no longer a slave of money. Meaning, you are not bothered waking up in the morning thinking whether you have food or not, not worrying that you have to go to your work or business to make ends meet, or becoming too stressed out to pay your debts (no matter how big or small it is).

Because you are never financially free if you keep working for money, and you will never have financial freedom if you are living in debt.

Truth is, the road to being financially free will be achieved alongside being financially secured. Question is, how?

 

How to become financially free

In order to become financially free, you have to have life goals. If you don’t have any goals, whatever you do seems blurred and lost because there is no sense of direction. And since we’re talking about becoming financially free, your decisions must be redirected towards this goal. You have to have:

The goal of living a debt-free life

In the world of debt, there are two kinds – the good debt and the bad debt.

  • Bad debt is when you have debts over material things that cannot be converted into liquidated funds. The basic example is loaning money just to buy the latest version of iPhone (or other brands), gaming console, bags, shoes, etc.
    Also, another example of bad debt is accumulating other debt just to pay your previous debt, without the assurance of where you’ll get the money from.
  • A good debt – is when you loan money and invest it to make your own business, or look for good investments to place your money. In short, good debt is something you invest in for your future.

And always remember, spend what you only have. If you can’t pay it in cash, then no need to use a credit card. Use your credit card only when necessary. Like you forgot to bring some cash with you, or your cash on hand is not enough but you have it at home. Avoid the mentality of “I have expected money next week/month, so it’s okay to spend this amount right now”. What if your expected money doesn’t show up due to unforeseen circumstances? Because of your inability to control and have discipline, you already have debt.

Another thing, if you have unpaid debts right now, make it a habit to slowly pay each one of it until you no longer have one.

 

The goal of budgeting

No matter how big your cash flow is, or no matter how much savings you have, if you don’t budget, you’ll lose everything. Budgeting helps you prioritize the important matters to pay and spend. And if you’re strict on your budgeting, you will save more than you expected.

In terms of budgeting, you must have segregated savings for your basic needs, due dates, obligatory payment, healthcare, and emergency funds. And when it comes to your budget, you have to stick to it no matter what. Eventually, you will have ‘enough’ savings that you can use for future investment. Invest first before spending on unnecessary things.

 

The goal of continuous learning

One of the reasons why it is good to prioritize investment or having your own business is because you are actually buying experiences and not just temporary things. When you learn, you grow as a person, and once you grow, you’ll understand what’s important and what’s not. You become more mature and educated to understand the importance of continuous learning in life. Because even though you are already living the life you wanted to, it doesn’t end there. As long as you’re living, you have to keep learning.

The goal of true wealth, and that is health

A major and common mistake most people make is that they keep on grinding, working, and chasing money, that they tend to forget the most important foundation of life which is health. Money may be considered wealth, but only temporary. But once you become fatally ill, you will lose all your hard-worked money in order to save your life. Why let that happen if you can live life freely and healthily at the same time?

Let me just remind you that centuries ago, people are living past 100 years old. But nowadays, you’re incredibly lucky if you even reach 80 years old. This is because, during the past, people pay more attention to their food rather than luxuries. They pay more attention to their health, rather than technology. And lastly, they pay more attention to their families, rather than chasing money.

So, therefore, make your health your utmost priority. Make it sure you allocate some time to do things that will contribute to your overall well-being, spend your money to buy nutritious foods, and invest in your health care.

 

The goal of having consistency

In life, you can never be successful at something if you only do it when it’s convenient. So in order to be financially free, put your heart and mind to it. That means no excuses, no delays, and no limitations. Always remember that consistency is the key to success and freedom.

 

Conclusion:

Remember, it will be too difficult to become financially free if you’re facing growing debts, insufficient funds, lack of cash emergencies, and existing medical issues. Doing what is advised above will help you become financially free.

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