You are reading this because you want to make money. But the question is we all are making money, be it little or just crossing the line over at the end of every month or you might be owning a Boeing Dreamliner 737, who knows? But the fact is, we all have money. Then what is it that makes some of us rich and some of us just struggling to meet their needs? Maybe luck, maybe inheritance, maybe sheer hard work or maybe a genie in a bottle? The fact is these all might very well be the reason behind someone’s financial freedom but we would be enlisting 8 steps which can ensure your financial freedom:
- Shifting to net-worth mindset
It’s the key to financial independence. Your income’s ratio to your liabilities, expenses and investment define the base of your financial freedom and your actual net worth. If this ratio is positive, your net worth is healthy even if your income is not increasing. This can be achieved with a simple trick; you don’t save what is left, you spend what is left after saving. This simplest of move would actually build upon your investment, a much-needed pool of money for rainy days and a potential worth. Almost everyone has practiced this basic habit which has enabled them to gain financial freedom.
- Track your expenses
Yes, it’s necessary! After you are done with calculating your net worth it time to track where your money is going. Identifying your expenditure heads such as bills, fees, entertainment, commute, groceries, etc. This might not taste good but its the key to budgeting and materializing your net worth. This habit also builds up an unconscious way towards accountability and adaptability. It really puts your spending in perspective.
- Keep on learning
We age and we rust. But if you are looking for financial freedom you need to keep your mind and your skillset to a desirable level. Learning a new skill set or exploring new earning ventures would not let your mind get rusty and will secure your flow of income. Digital marketing or digital services is all you want to rely on. If you experience in a working domain, go on to the internet and search your way. There are hundreds of fields offering remote paid jobs online from teaching to being a virtual assistant manager. Millions across the world are earning via the internet by providing their services. This habit in return improves your skillset and keeps that steady flow of income healthy.
A wise man once said, never put all of your eggs in one basket. This principle remains at the center stage of financial freedom. People earning six-figure incomes are rarely earning it through one source. The majority of them are engaged in a pool of earning activities. While they must be busy with their 9 to 5 routine but they also would be utilizing their free time in either small scale entrepreneurship or offering services to millions around the world through the web. The key is to stop relying on one source of income so that a steady and diversified flow of income keeps coming.
- Be an investor, not a consumer
The world is full of consumers but the rich and smart minds are investors. This investment can be in any form; be it financial or time. One has to invest today for it to be fruitful tomorrow. The majority of people who are living their dream of financial freedom has invested their time or money smartly. The other reason for being an investor and not a consumer is that when the investment ratio to your income is greater than your spending, the net worth increases which define who is struggling and who has attained financial freedom.
- Build your social circle
Yes! You need to grow your social circle having a pool of experts and opinion givers. This group of people grooms your mind to think positively and act proactively. It is this social collaboration that expands the social security combined with financial independence. Experts in this group pave your way in a number of ways such as helping you explore new ways to earn money and investment opportunities and guiding you on critical decision making. Although finding sincerity in this domain is tricky but not impossible.
- Read, Read and Read
This has to among the top of the list for someone who desires financial freedom. It pays you back in one way or the other. Reading in today’s era helps you explore new ventures and platforms to try your luck. Internet, for instance, was not a solid earning source a decade ago, but today you will find numerous ways to earn money. From social media platforms to online investment websites; this all would be untapped until you don’t read about them. Reading also helps in grooming your competency. You would find your way to earn you have read and understood an array of skills.
- Be patient
With all being said above, it is important to realize that nothing happens overnight. Nature’s every happening takes time. Attaining financial freedom is a slow and steady but a definite way to a better living standard. All of the ideas available online of elsewhere grow with time and since wealth is dependent on the multiplier effect, it by all means requires time. The majority of us lose heart and let go on an idea after some time. This proves to be disastrous and adds to the frustration. In some worst cases, an individual quits on the idea of financial freedom for the rest of their lives. Since failure is important for success; this initial failure might not be the failure but rather an opportunity to wait for the best.