This is the common question everywhere in recent times, you can see many articles written in this topic. Is that everyone looking for Financial Freedom? What is tempting to get this in our early life? Is that attainable by all? Do you need to sacrifice a lot to reach the FF? There are lot of questions in our mind, but answers can’t be found easily.
To keep it simple, yes, you need Financial Freedom. Is this achievable? Yes, it is. But, how are you going to attain FF? This is where you need to work on the customized plan to suit your background, lifestyle and age. You can’t simply take a common plan to get this done. It should be tailored to meet the various needs of an individual. It doesn’t mean that you need to spend lot of money to get the plan prepared with a help of Financial Planner. Indeed it’s helpful, but not mandatory if you have the adequate knowledge.
There is a path to achieve the Financial Freedom in life. In simple term, you need to Earn more, Spend less, Save more and Invest All savings wisely. This will be a broader outline, one has to plan in detail of each phase of this cycle.
As soon as you complete education, it is vital to get into a well paid job. At times, you may not find the well paid job initially, but still you should try to get more at the earliest. There are many opportunities to earn multiple incomes. It could be a part time job, online earning, spouse job, Royalty bonus etc. But, you need to make sure to find some legitimate ways to earn more money from the beginning.
Not only earning more is important, spending less also key to achieve Financial Freedom. Need to prepare a budget every month and you have to stick to that. No one can create wealth by spending money more than their earning. You need to keep a track of each and every expenses, it helps to bring control in spending.
Earning more and spending less will result in more saving. It will give you the option to do what you want in life. Accumulate as much as possible to buy right kind of asset which will grow over a period of time. The systematic saving, and accumulation of money gives you confidence in life.
After accumulating the money, it is very important to invest the money wisely. If you keep the money in savings account, it will not yield adequate return. You need to learn and develop knowledge on investment products and choose the one wisely to invest the money you saved.
Keep repeating this for 10 to 15 years in your early career, Earn more, Spend less, Save More, and Invest All saving wisely. You will have good amount of Wealth by end of this period which gives you passive income to enjoy rest of your life. Again, this is easy to say than follow, you need to prepare your mind to do this diligently, repeatedly to reap the full benefits.