Many have ignored the simple steps towards their financial freedom, even if the facts are already in their faces. Growing old in a mediocre environment might be the culprit of this.
Their minds have become conditioned to the point of thinking it’s a freedom they can’t achieve even for a hundred years of trying. They will say it’s just a myth.
Some would also argue that only the already rich get richer while the poor get poorer. Ultimately, deciding that it’s not a cup of tea and just gave up the idea.
It’s disheartening to see people settle for less every day, hoping that their government saves them from the pits of poverty.
It should not be the case.
Nobody can save you here, only but YOU and your prayers.
Take note that although achieving financial freedom may not be as easy as some financial gurus describe it to be, it’s a personal thing. You’re the one to take the initiative.
And there are simple steps that anyone can follow. It’s better to have a starting point than not to start at all!
So simple that it’s an easy decision!
You will be on your way to financial stability when you apply these steps to your daily lives. Make it a habit; I implore you.
Step 1: Don’t live beyond spending capabilities
If your spending habit goes unchecked, it will always result in financial instability.
If your lifestyle is to spend lavishly every pay raise or promotion, it will be a financial disaster soon, that’s for sure.
What’s worse is having the habit of living beyond your means. It will strain even the little that you earn, and squeeze you out more till you’re dry.
We have social media to blame for this.
People follow their favorite celebrities and emulate them. It’s a saddening fact nowadays that some people will resort to borrowing money to keep up with their idols’ lifestyles, or at least appear to be like them.
I threw a stone into the sky. Whoever gets hit with it, don’t get mad. But the truth hurts.
You can’t live like this for long, or you’ll end up dead broke.
Start with skipping those expensive coffee breaks with your colleagues.
Get rid of those cigarettes and weekly drinking habits. You can thank me for that later.
Instead of subscribing to gym memberships, do calisthenics at home. You’ll have a healthier body, but not only that, you’ll end up with a healthy wallet too.
Cut back those unnecessary luxuries that you are used to doing.
The instructions might be dull and boring to you, but it’s just common sense!
These are just a few ways that you can do to save up.
Try living below your means.
I know for some, to do this abruptly will be difficult. But you can do it little by little every day and still live comfortably.
Step 2: Save Up and Invest
I’m sure that after you’ve adapted yourself from what you’ve learned from Step 1, you notice that you now have the capability of saving up some money.
Saving up money is one of the wisest things anyone can do for themselves and their loved ones.
Think about your future, instead of thinking and living only in the now! There’s nothing wrong with that.
Imagine your frustration if you have nothing to pull out when a problematic situation arises!
To avoid it, learn to save up.
The conventional way is saving money in a bank with .25% per annum. Not bad if you intend to keep it there for the time being.
But don’t put all your eggs in one basket. Aside from saving, have some for emergencies and investments.
I know you always have plans when you have the money in your palm. Just put them on hold for a while and hear me out for a second.
I have some recommendations that could help with your steps to financial freedom.
We’ll always start from your aggregated income, be it from salary or side hustles, keep these sub-steps in mind:
- From your total revenue, take out 10% then put it to your savings account. Keep it untouched at all costs.
- Take another 10% and put it to another account for emergency funds.
- Again, take the third 10% and save it for future investment opportunities.
This way, your money will grow.
After all the deductions, what’s left is all for you. Just don’t spend them altogether in one sitting.
You should learn some budgeting skills and survive until next month’s salary. Here’s an article that might help you with that.
Step 3: Try Improving Steps 1 and 2 for your Financial Freedom
Steps 1 and 2 are simple to implement. It’s an excellent plan to start towards your financial freedom. They sure look good on paper, if you’ll ask me.
The problem comes in after a few months when most people quit along the way.
Why? — They lack a purpose.
It’s tough to execute a plan without a purpose.
It’s challenging to start from zero. But it’s more depressing to fall back to where you’ve started. Make sure not to do that.
Ask yourself, “Why am I doing this?” To whom are you doing this for and to what end.
When you have the answers, saving money and minimizing your expenses will be effortless.
Make it a habit. Then improve your saving skills day after day.
Read business magazines and books about saving and investing. You can also talk to professionals.
Look for such articles on the internet and bookmark it in your browser for future reference.
There are also online programs to enroll in if you want to up the game of saving and investing. You can visit this link and find one of Anik Singal’s courses that might interest you.
I’m glad you’re still reading up to this line of my post.
It’s a good thing that you’ve learned the essentials earlier than later.
Me, a former OFW, I learned the steps later in my career. But you know how the saying goes, “it is better to be late than never.”
Now you have the steps to financial freedom and have known your purpose, you’ve got to implement them soon.
Gradually merge them with your daily activities until they become natural to you.
The path to freedom is open, and you’re the only variable!