16 Mar Personal Guide To Financial Freedom
Financial freedom is not something which comes to you naturally; rather this is something for which you need to work hard.
There are several ways through which financial freedom can be achieved by you. These methods have been stated in the headings below.
Credit Card Debt
If you really wish for financial freedom then the first thing which you must immediately do is get rid of high interest debts and other credit balances which you have under your belt at the moment. Do not pile up these kinds of debts as they really make you suffer in the long run.
Rather than saving your money in the saving account of your local bank, try to invest this money in something that can give you good returns. Try to increase your cash flow and decrease your reliance on the 9 to 5 job which you are currently doing.
Consider Your Affordability
Making a small down-payment for your home means that you’ll need to pay a higher amount every month. When your home equity becomes equal to 20% you need to give something for mortgage insurance as well. This insurance can be as high as 2.25%. Considering this fact, it is better that you go for a larger down-payment as this can turn out to be a good financial move for you in the long run.
However, something which should be kept in mind is that you should not become overly ambitious. Try to purchase a home when you really can. Trying to live beyond your means can really put you in a very tough situation.
Adjusting your expectations pertaining to your own lifestyle is something which is very difficult to do, but this is perhaps the only way through which you can actually achieve financial freedom. Yes, it is hard to get rid of your favorite car, shifting to a less expensive property and cancelling your vacation plans, etc. To establish a financial plan, you need to be flexible.
Finally, make a proper savings plan for yourself. Savings are not only linked with how much cash you’re holding on to in your bank account; they are also linked to how much you can cut your spending by. Try to get energy efficient devices in your home so that your bills can be reduced. There are many energy saving techniques which you can easily find on the internet nowadays.
Financial freedom is something that requires some serious effort and it is by no means a piece of cake for anyone. According to Robert Kiyosaki, “Financial freedom is available to those who learn about it and work for it.”