Financial freedom is a way of life that one naturally aspires to, as it guarantees greater independence and a more fulfilled life. Indeed, this autonomy allows you to no longer depend on a simple monthly salary to live, and to have the freedom to undertake all the projects that are important to you. Financial autonomy is accessible to everyone contrary to popular belief: attainable on condition of being sufficiently determined and disciplined. By having this state of mind, you will be able to better manage your budget, and will be motivated enough to generate income other than through employment.
The importance of financial freedom
Financial freedom is a concept that can be defined in 2 ways:
The freedom an individual has to to be able to live his life as he wishes without depending on a job. From this perspective, a financially independent person is then able to support themselves without having to work for a boss. She is free to make decisions about what she wants to do and this, without depending on anyone. His outings, his travels, his working hours… are entirely his responsibility and do not depend on the agreement of any hierarchical superior.
Have more passive income than current expenses. These revenues are obtained from sources other than the monthly salary. Instead of working more to earn more, you make that income work for you.
What mindset do you need to have to be financially free?
Financial freedom is available to anyone who wants it, but it does not come without work. To become financially independent, you must acquire a certain state of mind.
Determination is the key to financial autonomy, because it allows you to undertake your personal projects. You will mainly need it for deal with possible failures on your journey, because you should know that being financially independent does not happen overnight. You must therefore work on it every day, and be patient, because the results may be delayed.
To become financially independent, you must also exercise discipline. One of the reasons some people fail to achieve this goal is that they lack the willpower to break free from overconsumption. And yet it is by limiting unnecessary and superfluous expenses that you will manage to have enough money for your essential needs. You must therefore learn not to succumb to the temptation of a society that pushes you to spend more and more.
The methods to apply to achieve financial freedom
Understanding the concept of financial freedom is the first step to fully enjoying it. Once you’re in the right frame of mind, you can then implement some techniques to become financially free.
Think of systematically put money aside when you receive your monthly salary. To be sure not to spend it, you can ask your bank to block this savings. If you manage to save even 10% of your salary for several years, you will have a fund that can be used in an emergency, and that you can invest in a personal project as soon as you can.
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Logically, to better manage your budget, you must avoid debt at all costs. It is indeed tempting to borrow to buy a car or household appliances, but in the long run it isA false good idea. To fill this type of need, you can buy second-hand devices.
If you were to incur debt, it would be for your investments.
Find other sources of income
The goal of financial freedom is not to get rich endlessly, much less to live for money. Rather, it is put money at the service of your life, which means having enough income to do what you like and get out of the infernal cycle of work-metro-sleep. For this, it is necessary to find other sources of income, which can then be reinvested in order to be transformed into passive income.
The solutions are numerous in terms of lucrative activities, but the main thing is above all to devote yourself to the one that you like. Rental property investment, for example, is very profitable, and will provide you with regular income in addition to allowing you to increase your wealth. You can also turn to entrepreneurship by setting up on your own account, making investments in the stock market… If you feel that your income does not yet allow you to make large investments, you can also start with small activities such as of the services on platforms that remunerate online for example.
Reduce your expenses
It is perfectly possible to reduce your expenses by carefully examining your lifestyle. Identify your most important needs, and avoid spending on trivialities.
The right method is also to compare the income you earn every month to your monthly expenses. You will be able to visualize your possibilities in terms of savings, and adapt your mode of consumption as much as possible to your means. For food, for example, you should cook as often as possible since ready meals are more expensive. Take advantage of sales to buy clothes, don’t hesitate to buy products in family size to save money (check the price per kilo), carpool to save fuel…
Try as much as possible to quit bad habits like the cigarette which not only is a real sinkhole for your budget, but is also harmful to your health.
Finally, get into the habit of always negotiate prices when you buy. At worst, sellers will deny you the discount, but most of the time they will give you a discount, so if you do this consistently when shopping, you’ll get some great deals.
Financial freedom is reaching out to you, it’s up to you to make it a life goal!
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