Currently
world’s majority population is busy working out their financial independence. As
spelled, financial independence isn’t that easy to achieve. It takes a lot of
courage to handle your debits and credits, manage your incomes and expenses.
The credit rating does hamper your growth to financial freedom. If you possess a
bad credit rate you ought to get it cleared as soon as possible by timely
repaying the loans. If you can count
upon exceeding expenditure bills, you should cut them off immediately. But is
it all as simple as it seems. Check out what I came across through some internet
blogs and finance articles, some tips to help you gradually work out for
financial freedom:
#1 The Most Important Financial Asset – YOU
It is your
skill, knowledge, experience, and personality that matters a lot as an
important financial asset. Based on these features, your career becomes your
next very important financial asset. And all these qualities and features all
because of your existence, thus being the most valued object among your
personal assets.
To utilize
and save the asset, it is important for you to take care of how you wish to
work out for financial freedom. You need to focus upon your will power, sharpen
your skills and fight for desires in order to aim to achieve your goals.
As per the Basic accounting principles, you
are your very own principle financial asset. Work smartly and invest carefully
to ensure future financial security for self and family, thus enduring
long-term goals with the practice of short-term goals.
#2 Define Goals and Set the Targets
Your
ultimate aim in life should be financial freedom. To reach this destined target
you need step up the various stepping stones of life. The life may play with
your illusions but it is necessary that you identify the threats and analyse
the distance you wish to travel. Mark your goal destinations and work to grab
them faster.
People
those are known to be successful had set their goals right, visualizing their
future life and marking each step of their journey in life.
Pen down
your goals, set a roadmap to achieve them with simple steps. Your goals are
your personal insights for financial freedom; it is not necessary you explain
them in detail and make a complex roadmap to it. List down your priorities and
needs, re-arrange them as long-term and short-term goals and get down to work.
#3 Quick Steps – Follow the Short-term Goals
Short-term
goals are made to be fulfilled in less time. Thus keep a sharp focus on
fulfilling such goals, keep striking those that are already fulfilled and you
can see your-self growing. Break your long-term goals in to steps and mark them
as your new short-term goals.
People tend
to fail their plans, when they begin focusing more on the long-term goals and
start losing upon the short-term plans. Make sure, your focus remains intact
and you get up every time you feel low.
Goals are meant to be achieved with sincerity and honesty.
Spend
cautiously and save for the retirement.
#4 Ensure that you spend less than what you
earn
The key to
financial independence is to have a positive cash flow where your income comes
from passive income sources. Even the richest men in the world would not
continue to be rich if they forget to save and spend cautiously.
The rich
have smartly set up their sources of passive income and are then enjoying the cash
intake. Though it sounds pretty easy, minting coins through passive income isn’t
that simple.
Take
control of your finances, set up a record of every inflow and outflow.
#5 Understand finances
Being a
financially literate person is about knowing how the finances work and how to
care for money. Understand the terms, the
debts, the tax, the inflow, returns, etc. and be serious when you work with
them. Handling finances are not fun but applying them to your daily expenses
will help you understand where you are losing.
#6 Borrow to invest, not to finance expensive
stuff
Remember
borrowing should be purely dependent on the investments rather than daily
expenditures. Getting personal loans
is easy, but your expenses should be well planned and chalked out.
Many people may get habituated to the use of
credit cards to enhance their personal lifestyle that they cannot afford. This
will get them timely happiness followed by a burden of debts and repayments
bills. At such consequences you should sit back and wait rather than falling in
the trap to borrow money. Money is a
matter of fact that comes with patience and fortune. You don’t have to fall
prey to unwanted expenses. Thrifty expenses can save the decline of the credit
score.
Moral: Financial independence is about smart understanding. Though it is not easy, but it is achievable only when you understand your priorities and focus on your steps to achieve your goal.
Moral: Financial independence is about smart understanding. Though it is not easy, but it is achievable only when you understand your priorities and focus on your steps to achieve your goal.
