Freedom has one definition and that is to have a choice, make your own decision and do what you want. But the definition of freedom has become different that is according to of the event, circumstances, and situations.
Every word has a general definition, but it makes a lot of definitions because of the different perspective of a person. It same goes in Financial Freedom when hearing or read this word you will think about money, freedom in money!
What does exactly mean about financial freedom?
Financial freedom is not about having a lot of money so you can get freedom, no that’s the misconception of the financial freedom. The real meaning of the financial freedom is the ability to control and planning about money concerns, it’s not an excuse of having limited money in your pocket.
To have a stable planning, you should carefully controlling your financial freedom. In able to achieve the financial, first make a plan for yourself because you are the one who can identify your needs to cut off or diminish some unnecessary spending and the next thing you need to do is to create a plan for the future such as planning for your retirement and expenses just in case emergencies happen.
Here are the steps for a successful financial freedom:
- Analyze, figure out and study your financial status at the moment the first step you need to do. You need to trace all your expenses so you will know the direction of your money. Write down all the reason of losing your money and calculate how much the cost of losing money per year and that will identify the amount of your net worth.
- Make your set of financial goals, it sounds like you’re making a wish list. You need to anticipate what happen in the future, you need to think ahead. How much will you spend and invest so you can save money?
Keep the goal practical such having work that will pay right and the same time it has benefits. Rank your goals from what is the most important, so you will not get confused on your priorities. Either it is for short term or long term.
- Trace your bills, eliminating the unnecessary expenses by getting your monthly bills. Trace all the payments you did every month and there you can decide which you want to eliminate that cost you a lot to your bills. You can control some service like for example, buying broadband plans in cheaper price.
- Planning for retirement fund is very important to assure the status of your financial future. Early to start the better, when your working gives a bigger amount for retirement takes that opportunity.
- Teach your children how to save money, by this it would less your problem in financial stuff because your children will help you in comes in budgeting. When you teach about financial stuff they will be aware and initiative to do some ways in saving money for their needs.
These are the five steps leading your success of your financial freedom, hope you able to follow this steps correctly. You can find more effective steps at Top 7 Binary Robots as well. Make sure that you follow the ones that are the most effective with you.