Road to Financial Freedom

What do you want, really? What is your dream?

But does it matter if it can’t support our life financially? It is a bitter pill to swallow but it is also the biggest reason why most of the people are stuck in the ‘rat race’, sitting in the office from 9 to 5 just to pay bills and die.

Are you tired of a life like this? Do you want to change the way you live your life, the thing you spend your time on? Achieving financial freedom might be one of the ways that can help you to chase your dreams or live your life comfortably in a way you like.

Financial freedom doesn’t necessarily mean quitting your day job and stop working anymore. It is more like having enough savings and cash on hand to afford the lifestyle you want. Emergencies like medical fees and repair fees do not worry you and you get the freedom to quit the job you hate.

Achieving financial freedom is not easy and it requires an enormous amount of time and discipline. But it will be worth it when you get to do something you love, say making music, on a Tuesday afternoon instead of sitting in the office cubicle. The thing you love might only earn half of the money compared to your day job wage but you no longer have to stress about the money anymore because you have found a way to cover your monthly expenses.

First and foremost, know your goals. Having a clear vision of what you want such as getting rid of your debt for good or saving for a wedding can help you reach your goal much faster. You can have multiple goals and classify those into two – long-term goals and short-term goals. It makes all the goals look more achievable. The concept is simple, the more specific your goals, the higher the likelihood of achieving them.

After listing down your goals and deadlines for your long term and short term goals, compile a list of all your debts. List down your mortgage, student loans, credit card loans, and any other debts, start to manage it from the highest interest to the lowest. It is impossible to consolidate and steer clear of your debts overnight but it can be a good start by starting to pay off the loan that charges you with high-interest rates.

Getting smart in managing your debt by having an efficient repayment plan can save you a decade or more worth of work. It can act as a motivation for you to pay off your debt before you can start building wealth. Always pay off your credit card loans in full, this can help you to admonish yourself from impulsive purchase and spending the money you don’t have.

After knowing how much money you need to pay for your debt every month, you can now manage your spending even better. Make a monthly household budget and stick to it strictly. Take a hard look at your daily expenses and cut down all the unnecessary expenses like the online subscriptions you no longer enjoy. Give every dollar a name because budgeting is a crucial step to build wealth on purpose.

And also, take good care of your property can make everything from cars to lawnmowers last longer. The same goes for your health. Poor health can cause your insurance fees to skyrocket and force you to retire with a lower monthly income. Therefore, sending your property for maintenance from time to time and take good care of your own health are surely a smarter choice.

Calculate where you are today. Figure out how much money you need to reach financial freedom. How much savings you need to have in your bank so you will not struggle for a living when you quit your day job to pursue your dreams. Figure out your number, make a long term financial plan based on your number, tied to your emotion and motivate yourself to work hard. The desperation can keep you going through your journey and reach higher.

Track your expenses, keep them under control and never forget to save the extra. Try to save the 10 to 20% of your paycheck and build an additional stream of income like getting yourself a part-time job during the weekend or after work if you have some spare time.

Grind for the extra money to invest. Invest whenever you can because when you invest, your money works for you, even if you are not a professional in the financial market. You can learn how to trade on a demo account, spend some time on analysis and try out your trading strategies without trading with your real money. Remember, only fund your live account with the money you do not depend your life on.

Trading Forex may seem difficult at first but it gets easier once you get yourself familiar with how it works. The only commitment you need to do when you start your Forex trading journey – never says no to learning. Trading Forex requires continuous education and given the resourceful of the internet, it’s even easier for you to learn and experiment with strategies to pick up the one that is profitable.

Financial freedom is paramount because job security is an illusion. The reality is if you are an employee, you are constantly interviewing for your job even if you have already got the job. Passive income can play a major role when it comes to the uncertainty of job stability. With Forex trading, you can develop it into a fruitful business and allow you to achieve financial freedom at a much faster pace. You may not gain a lot for now, but never underestimate the power of compounding.

Achieving financial freedom is all about discipline and humility, owe nothing – manage spending – save – trade and invest. Let it surprises you!