Financial independence or financial freedom refers to a state wherein one person doesn’t have to work for money, but money is working for them. It’s like the top tier of all financial freedom. What you should know is that reaching such a dependence requires a great deal of financial education, good financial decisions, and less money loss. Although that might seem impossible, it’s actually not. You see financial dependence is a long term goal. Although the ideal timeline for you to reach it is before you retire like before you reach age 60, you can stretch that to a lifetime too.
Although a lifetime can’t make you financially free, its a good way for you to entrust your will to your next of kin. The fact is even if you fail over and over again in attaining financial freedom, you should still try because it’s very much worth it. But how can you actually attain financial freedom? It might seem impossible but it’s actually not. You just need to know a few things that you need to do in order to achieve that.
Accept your situation: The first step to financial freedom is to acknowledge your situation, that you need to manage it or you need help. Realization and awareness is a good thing because it makes you realize the things that are really important and you will develop ways on your own on how to manage them.
Have a more sound process in managing your finances: It’s always a challenge to save especially if your salary is just enough or just barely getting by. But if you can find a way like getting an extra way to earn and save them, you can save. If you have just enough, maybe you might want to reassess and see what things you can save, like minimize eating at a fancy restaurant 3 times a week. Minimize it to two or once a week and stop buying things that you don’t need like an extra TV during Black Friday sales and so on.
Know more about growing your money: The easiest thing to do about money is spending it, saving it is that hardest part because you have to face your urge all the time not to spend. It’s always going to be a challenge controlling your urge especially if you’re the type of person that has a “light hand” when it comes to handling money.
Financial freedom is a state of being free from any debt and is in a situation where the money is working for them and not the other way around. If you wish to know more, have a peek here.