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Wednesday, 20 June 2018

Path to financial freedom

How to get early financial freedom in life
Can I get the financial freedom early in life? This is the common question we all having in our mind, and there are many articles written in this topic. Is that everyone looking for financial freedom? What is tempting to get into this state in early life? Is that attainable by all? Do you need to sacrifice a lot to reach the FF? You may have lot of such questions in your mind, but it will be difficult to find the answers in one place.

To keep it simple, yes, you need financial freedom. Is that achievable? Yes, it is. But, how are you going to attain that? 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 a must 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 is a broader outline, one has to plan in detail of each phase of this cycle.

Earn More: 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. You need to make sure to find some legitimate ways to earn more money from the beginning.



Spend Less: 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.

Save More: 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.

Invest All: While 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 and consistently to reap the full benefits.

19 comments:

Debbie said...

we earned financial freedom early in life by working hard and investing in property and stocks at a young age. we were 40 when we "sort of retired". we have a lot of income property now, we take care of it and the tenants but it has given us a lot of flexibility and freedom. we are extremely lucky!!!

eileeninmd said...

Hello, Spend less and save more. These are great tips and post. Thanks for sharing. Enjoy your day!

Beauty Unearthly said...

Hello, thanks for the information. Have a nice day

Elephant's Child said...

Thank you. I have all that I need and a little extra and am very grateful.

Rose World said...

Great tips but somehow not that easy to achieve. Possible but hard. Thanks for this post.

The Armchair Squid said...

Good advice. It's not always easy to follow but it's good advice.

Christine said...

Thanks for the great advice!

DUTA said...

We can control spending and saving. Earning more and investing are not always easy to manage. In any case, Luck is an important factor when it comes to Financial Freedom.
Good, thought-provoking post!

Nancy Chan said...

Great tips! I have learned to spend only when necessary, making exceptions only when on holiday or feel that I deserve a break. God has provided for our needs and more than we need!

Joyful said...

I remember when I was young, retirement seemed so far away. Many young people think that way and so if they haven't learned from a young age they start too late working on financial freedom. I think schools should teach about money issues from the beginning to the ending of going to high school. It might help many young people.

Hilary Melton-Butcher said...

Hi Weekend Windup - good advice ... start early and save hard, be practical with your money and look after it and any assets you may get. Cheers Hilary

wendy said...

Hello and thanks for visiting my blog. You sure have lots of interesting articles here. We are FF but we are now 60 LOL
And enjoying our retirement as you know ☺☺

PerthDailyPhoto said...

All good advice WW, sometimes hard to follow, especially re the spending bit ☺

NatureFootstep said...

I´m retired so things are as they are. :)

Lowcarb team member said...

An interesting read, thank you.

All the best Jan

Linda said...

Good tips! There was a time when a savings account was commonly advised but now it is almost worthless.

RO said...

These are some really great tips! hugs...RO

Betsy Adams said...

Great advice.... We work constantly on our budget --but have some money set aside for emergencies... We also use credit cards but ALWAYS pay them totally off each month.. it's that 'interest' which we are not willing to pay!!!!!

Thanks for sharing.
Hugs,
Betsy

Leigh said...

Very practical advice! Best part is, it works!