Financial freedom is the ability to live life to the standard you desire without relying on a constant employment income. It also ultimately controls the money, rather than controlling everything. It is the dreamland of personal finance and to stop working when one wants and maintains a lifestyle they desire. The simple equation to achieve this is to live according to the basic truth.
Keep a clear track of your spending
This is one of the most crucial steps taken towards realizing financial freedom. You must know that each and every spending, however, small it may be counted and therefore every expense must be clearly tracked. By so doing, you will then begin making some small cuts on your expenses, and before you realize, you will be making significant savings.
Avoid impulse spending
Impulse spending means just buying something “just like that” without any prior plan of making the purchase. You must make sure that all your purchases are planned and you only spend on those pre-planned and budgeted expenses. This way, you will avoid the habit of spending anyhow anytime.
Avoid the debt cycle
The debt cycle happens when you become a serial borrower. This means that at any given time, you are in debt and this reaches a time when the debt chokes you, and you get a financial breakdown. The debt cycle can be avoided by learning to live within your means and proper planning.
Mind the friends you choose
Your choice of friends will greatly determine your financial freedom. If the friends you move and hang around with are spending recklessly, it will be most likely that you will also develop that bad culture of reckless spending. Therefore try as much as you can to be careful of the spending ways of the friends or the people you move about with, they may ruin your financial life by injecting the bad behaviors into you.
With some investment, you will be assured of generating more money that you spend. This means that you have other sources of income other than just your traditional income like salary. Investment, however, needs your attention and you must make a very wise choice and consult before you invest your money.
There are some investment ventures but the most lucrative these days can be the real estate investment, stocks or any other as advised by your mentor. By investing, you are assured of money working for you, and you will be on a very nice track towards achieving financial freedom.