Financial Freedom Definition!
Financial freedom means having sufficient investments with steady monthly financial outputs that cover all your monthly expenses at a minimum cost. This would mean that you will not have to work another day to earn money for affording your lifestyle and instead you can focus on things which are important to you like family and passions. Doesn’t it sound like a dream come true? or maybe even too good to be true? Believe me or not there are many people on this very same planet who have achieved financial freedom and are enjoying life without the stress and hassles of working to earn money.
Now let’s have a deeper look at this fantastic idea.
If you own a business that is earning great money and is allowing you to afford your lifestyle, does it mean you have achieved financial freedom? Depends, if you also need to manage and supervise your team/employees this means you are working and are not financially independent, you still need to work to earn. Financial freedom simply means you do not have to work to afford your lifestyle. On the other hand, if you own a share in the business as a sleeping partner, and it’s giving you a handsome amount of money to meet up your monthly expenses then you are financially independent. A sleeping partner means someone who has made a share of financial investment but will not be working to run the business. Let’s say you made an investment in a coffee house but you will not have to supervise the business and still, it is making you able to afford your lifestyle it means you have achieved financial freedom.
How to Grow Rich?
Gathering any amount of wealth you need to have a plan. Planning is very important, but your plan should be very realistic and customized. This means you need to design a road map to financial freedom based on your own statistics of income and expense of living. Once you have a plan, it is very important to stick to your plan because gaining financial freedom/independence is all about the mindset.
How to Get Rich Investing Wisely?
Gaining financial freedom is no rocket science; you design a customized plan for saving money and then investing that money in something that will generate you a steady passive income. Keep growing your saving and passive income until you are able to pay all your living expenses from your passive income without withdrawing from the principal amount.
If it really is that simple, why don’t you see more people gaining financial income? It’s because as simple and desirable the idea is, most people do not have the right mindset for it. They do not have the patience required for growing slow and steady, or they are not willing to take the risks which are involved in businesses. Some find it hard to trust others enough to invest their hard-earned money into someone else’s idea. There are people who just are unable to make any savings at all because they are bad at budgeting and money handling. If you have any such issues, you need to work on them first.
How to become financially free?
There are two ways of achieving financial freedom. One is to grow your passive income to help you pay for all your monthly expenses. Other is to reduce on your living expense and minimizing your lifestyle to fit into your small passive income. Either way, you still need a passive source of income which is steady and helps you pay all your monthly expenses every month.
How to save money?
To make an investment, you first need to have savings that you can invest. If you already have some savings to get you started, great for you but how to save money while you already making barely enough each month? Well, obviously you need to cut down expenses and be very careful about where you are spending money. You need to carefully analyze the goal you have set for yourself and when do you want to achieve it. Divide the total amount of money you need to save on the total months you have till your deadlines, you will know how much you need to save each month. Once you know that craft a saving plan and see where in your monthly expenses you can save.
Here are some helpful tips for saving money
- Look for cheaper alternative whenever you can this includes everything from renting living space to shopping
- Spend only on essentials
- Stop eating out and learn to cook
- Cut out on partying out if you do that a lot
- Alcohol is expensive try to cut out on that too
- If your income grows do not upsize your lifestyle or you will not be able to save
- You can also take up a part-time job and make the extra income count as saving
Where to invest your money for passive income?
Once you have saved up some savings and think you have enough to invest somewhere, it’s time to decide where? Where would you like to invest the money you have worked so hard to save? Do your research, the more research you do the better idea you have of the market. My advice is you do not need to and should not wait for saving heaps of money. Start small. Try to make several small investments in different sorts of businesses, because you do not want to put all your eggs in one basket. When you are sure about the outcome of each investment you can invest more in the business which is yielding you better profit. Remember it’s the money you have worked hard for so do not make hasty decisions and avoid impulsive investments. Following are some ideas for passive income.
- You can literally invest in any business as a sleeping partner to have a passive income.
- Or you can buy a property and rent it out.
- You can also give your property on lease for a longer time period and invest the money further in any business.
- You can also buy an early retirement plan
For for more tips on how to gain financial freedom please refer to this gurrusays.com/financial-independence-how-to-get-rich-investing-smartly