These 12 Habits Will Help You Reach Financial Freedom

There is nothing valuable as freedom. Lots of people have not only failed to hit a financial freedom mark, but they have also sunk into debts thus making it impossible to save for the future. Before getting down to habits that lead to financial freedom; let’s define financial freedom.

 

What is financial freedom?

Financial freedom is a state of having adequate personal riches to live, devoid of having to work daily for their necessities. Financially independent people have assets thus generate cash which surpasses their daily expenses.

 

That said; let’s check out the habits that assist individuals to reach financial freedom.

 

  1. Set Life Goals

A desire for financial freedom is very indistinct of a goal. What does it imply to you? List down how much you ought to have in your bank account, what your lifestyle involves as well as at what age you should achieve it. That said, you need to understand that the more specific the goals, the higher chances of achieving them. For anyone to achieve the set-out goals, you have to establish a milepost at regular interval. You have to list them down neatly, and create the goal sheet at the beginning of your financial binder.

 

  1. Make a Budget

You need to make a monthly budget and make sure that you stick to it no matter what happens. It’s the best way of ensuring that you pay all bills as well as keeping your savings in check. Budgeting doesn’t only work as your monthly checklist; it also instils discipline in your spending habits.

 

  1. Pay Off Credit Cards in Full

Credit cards attract high interest when used for purchasing of product on a daily basis or getting emergency loans. That said; you need to understand that Cards are toxic to wealth creation, and the best way to cut off such unnecessary charges, you have to limit the use to cards. You can only use a card on monthly expenses such as rents/ mortgages only.

 

  1. Create Automatic Savings

When you are in business or employed, and you have a side hustle, you have to pay yourself. You can enrol into your employer retirement scheme and pay your monthly premium.  It is also wise to have a reservoir/saving for emergency use. To have this arrangement in place, you can always place a standing order so that the bank automatically remits cash into your emergency account. The amount that you wish to remit into your account is always debatable. However, the system works better for people who are employed; for those in business, you can still apply the same procedure or take the cash and deposit it into your emergency account. All said than done the automatic saving is the best because most of us lack the financial disciples.

 

  1. Ignore the Joneses

Most people are usually tempted to do what other people do “compete”. It is the most common thing that people like doing, for instance when you see your neighbour with the latest iPhone or a car you also make an effort of buying it. You need to learn how to ignore the Joneses; it is easy, all you need to do is smile politely nod and then take a walk knowing that you will have your share soon.

 

  1. Watch the Credit

Your credit standing is a determining factor when you want to buy a new car or to refinance a home. It as well impacts unrelated things, like car insurance and life insurance premiums. There is a high likelihood that the person with reckless financial spending habits might be reckless in other aspects of life like driving as well as drinking. That said, you need to note that it is always vital to get a report at a regular period to make sure there are no mistakes that will ruin your good name.

 

  1. Negotiate

Lots of people don’t like negotiating for goods and service, worrying that it makes them look cheap. If you desire to be financially able, you have to overcome such cultural handicap thoughts, and you will be able to save so much each year. Small companies, tend to be open to negotiation when purchasing products in bulk.

 

  1. Talk about your financial life.

In rare case will you see people talking about their financial life; however, it is critical to note that talking about your economic life will help you shape your thinking as well as reorganise how you want your financial life to look like. When discussing your financial life, you need to do it with your close (genuine) friends. They’ll help keep you accountable.

 

It also extends to your close family members (kids and wife), explain to them why you are not eating out. For instance, you can tell them you are saving for next summer; it makes sense right? It’s the only way to keep your family calm as you save.

  1. Proper Maintenance

Taking good care of your assets is another strategy of cutting on expenses; thus encouraging saving. As a master, you need to take care of a single asset since the cost of maintenance is always too high. Assets are investments that need care.

  1. Live Below Your Means

Masters a prudent lifestyle by living life to the fullest by spending less isn’t so hard. In fact, rich people live below their means before rising to affluence. Now, it is not a challenge to adopt neither a minimalist lifestyle nor head to the dumpster with things you have hoarded over the years. Just making small adjustments by distinguishing between things you have rather than things you want is financially essential as well as healthy behaviour to put into practice.

 

  1. Get a Financial Advisor

Once you have gotten to a point where you’re capable of discerning if you have amassed lots of wealth, be it cash or assets that are tangible but are not as readily available to convert to money, you need to get a financial advisor who will educate and assist you make credible decisions.

 

  1. Exercise and Eat Right

You need to live healthy, to create wealth. The principle of proper maintenance applies to the body. Poor ailments make insurance premiums skyrocket, and poor health might force earlier retirement with lower monthly income.


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