The meaning of “financial freedom” differs for everyone. Some interpret it as having the freedom to buy anything they want without worrying about the price. For others, it simply means having no debts to stress about and having no concerns about how they will pay sudden bills and expenses. While for many, it means being rich enough to retire and live their ideal life.
Although all these riffs are correct in some sense, they are half-baked answers. Financial freedom isn’t about being rich and having tons of money.
Basically, it is about having control over your finances. It means having enough residual income that allows gives you the privilege to live life however you want, without any trepidations about expenses that may suddenly come your way.
What do you think is the percentage of adults that are millionaires? Perhaps, the number isn’t too great because every other person isn’t one, but it’s neither too small because hundreds of thousands are joining the millionaire club every single year.
If you grew up in a family where you have no worries to think about when it comes to your finances, and you’re wise enough to make sound financial decisions, then you stand a good chance to become a millionaire.
The financial struggles you will face in your 20s and 30s are normal because this is the time when you’re still building up your finances. In fact, according to statistics, the average age of millionaires in the United States is between 60 to 79.
7 Steps Towards Financial Freedom
One cannot achieve financial freedom instantaneously. It does not happen overnight. If you want to become financially free, you have to take actions that will lead you to it.
Here are the measures that will knock up your path to financial freedom:
Don’t Be Friends with Money Wasters
There will always be people that are too expensive to have around. Yes, we’re referring to friends and colleagues whom you cannot be with without wasting money on trivial things. If you would keep such people in your life, don’t be surprised if you eventually find yourself in dire financial distress.
Truth be told, it only takes one bad company to ruin your financial life.
If you and your friends always drink, eat out, or party with friends every spare time you get, it will someday be a habit that you’ll have difficulties withdrawing.
Once your income increases and your finances get better, you will only end up eating out, drinking, and partying with your friends more often. Not that it only damages your finances but also your health (which also requires a big amount of money to treat).
If you don’t address this problem now, having more money in the future will only harm you.
You don’t necessarily need to spend much to be happy. Go for healthy habits that can help you healthify and improve yourself to reach your financial goals faster.
Develop A Routine
Developing a routine can help you save and make money simultaneously. This is because a planned pattern allows you to clearly understand how much money you need and makes you conscious of every single penny you spend.
Individuals who have no particular routine to follow usually splurge money on adventures on a whim and end up wasting a lot of money.
If you’re as wealthy as Elon Musk, then you can surely live without a routine to follow since you won’t have to worry about money. But for ordinary citizens like us, even small-scale routines matter— every penny matters.
Do you want to live life as you wish? Then you need to build a source of income you can rely on. And, of course, you need to develop yourself into a person that is capable of doing that.
Instead of spending your time on money-consuming escapades, develop a healthy routine that will boost your finances.
Stay Away from Social Media
No doubt— the internet is here to stay. But this doesn’t mean that we should go along with the mania and also set our lives around social media platforms. Being on it has many implications, especially for teenagers.
Many people on social media are parading the grandeur and greatness of their life to attract attention. Yet, those who often forget that everything we see on social media isn’t all there is to life fall victim to pursuing the same venture.
To fit into the society that we’re currently in, a lot of people tend to strive to be like what they see in social posts. People follow influencers to the extent that they are willing to get into debt just to drive a car, indulge in luxuries, and travel to different countries just for the sake of impressing others.
Social media is a great tool in some aspects, there’s no denying this. But when you have no control over yourself, it can lead to bad financial decisions that could ruin your life.
Try sidestepping social media as much as you can. Evade browsing through your Instagram and Facebook feeds to avoid finding yourself distracted by material things.
Have Enough Sleep to Make Sound Financial Decisions
When you have a good night’s sleep, your brain can function competently to make sound decisions. You cannot achieve financial freedom with bad calls, so you need to always have your brain well-rested in order to serve you well every single day.
Always remember that an exhausted brain can only lead you to bad decisions.
The human brain has short-term and long-term memory, just like computers have. All information you receive gets saved in the short-term memory, and all that information gets transferred into long-term memory once you sleep.
Have you ever thought of why you can’t think properly whenever you don’t have enough sleep? The answer is quite simple. It’s simply because your short-term memory is flooded with information that needs to be handed over to the long-term memory.
Hence, in order to have a sagacious mind and good judgment, it is important to give importance to sleep.
Solve Your Problems Without Money
We often think that having money is the solution to every problem we have. However, although money truly solves various kinds of problems that this world has to offer, not everything can be solved by merely having good financial standing.
For instance, if you feel insecure and inferior compared to others, do not use the money to mask that negative sentiment. Don’t buy luxurious things, especially when you cannot afford them, just for the sake of grabbing people’s attention into adoring you. Find other ways to fix and alter your mindset.
You can try improving your social skills and building a deep connection with your friends to find a sense of belongingness that would ease up all the anxiety that you feel inside.
Always weigh up if it’s necessary to spend money just to solve the problem you have at hand. If it’s solvable without money, then don’t waste a single penny you have!
Have Life Goals
The unpredictability of life is what makes it interesting. Despite all the planning we make, things still go south, may it be for the better or worst. Still, no matter how unpredictable life can get, it’s better to have a direction on where you want to go. Otherwise, you’ll have no destination to reach.
It’s better to have goals in line in spite of all the chaos of life since it gives sense of purpose and a bit of motivation to stick with a particular routine.
