Financial Freedom. This may sound like a good theory. But the truth is that it is possible to achieve anyone. And I mean anyone - even once who actually had thousands like you in student loans. No matter what financial troubles you have today, there is always a way to get back into the black. In this article, we consider the importance of financial freedom and share some financial freedom tips, including some that work for me.
It is about recognizing that you need more money to pay off the loan and maybe your income is increasing with one favor - we'll get it in just a minute. It is also about planning for your long-term financial situation by actively saving for a rainy day or retirement.
Do you want to get rid of debt for good? Are you desperate to avoid 9-to-5 pieces? Is there a place you always want to visit? Do you need to save for marriage, children or retirement?
When I achieved financial independence, it was because I connected it to an emotional goal. My goal was to get out of student loan debt and save for my first home. And honestly, it was a great experience seeing debt reduce and my savings increase.
I got so excited seeing the number change that I worked hard to make more money to see a major change in my personal finances. If I had not set a goal for anything emotional, would I have achieved my goal of financial freedom perhaps. I was desperate to get out of debt and move out of my parents' house. That frustration inspired me throughout my journey.
I misquoted that paper and completely forgot about it. And then one day, just a year later, when I was already living in my new house, I found it in my notebook. Certainly, I have accomplished all three things. The funny thing was that I was not consciously thinking about those goals.
You cannot complete everything you want in a month. But a year is a long time to progress on its goals. Make sure your target is connected to a specific number you want to hit. Believe it or not, you will start working towards the goals that are even without realizing it.
Knowing what you want to achieve makes financial freedom a million times easier.
You can use tools like Mint, which will let you know how much money you are spending, which categories you are looking after, how much money you have in all your accounts, and how much debt you have.
Another good thing about Mint is that it allows you to set targets within the dashboard. You can keep an eye on your goals and know that depending on how much money you have invested in the month, you will hit that goal. Thus, you have to hold you accountable and remind you to keep paying for it.
After using Mint for a month, I managed to save some extra money towards my new Wedding Fund goal. Mint helped me stay focused on my goals and pushed me towards making more passive income to hit my financial milestones.
On the other hand, Kanye West is not afraid for his money. He lives in a $ 20 million mansion. And at one point, with a $ 53 million loan, he decided to ask Mark Zuckerberg on Twitter for $ 1 billion….
Difference between two super successful gentlemen? Buffett did not spend more than needed, and West spent money he does not have.
The truth is, many rich people do not look like rich people. Zuckerberg literally wears the same boring T-shirt and jeans every day.
Buying less stuff can really help you get rich.
By spending less, two things work in your favor. One, you will have more money to set aside for your financial freedom. Two, you will learn that you really need very little stuff to survive, which also helps you to put more money.
And this goes into our next point…
Many people feel the same thing after ending their last loan payment: Relieved.
If you have a $ 50,000 loan, even if you have $ 30,000 in cash in the bank, you can't really call yourself financially free. You're still $ 20,000 in the hole.
Having money in the bank while paying someone else is not as glamorous, it brings you closer to financial freedom.
There are two main ways to pay off debt: snowball and avalanche. Snowball is when you first pay off the smallest debt. An avalanche occurs when you pay off a loan with the highest interest rate.
You need to decide what is best for you. But when I was working towards being debt-free, I did the snowball effect. It helped keep me more motivated. Since I was able to get rid of my first debt, a $ 1,200 credit card bill, in just one month, the feeling of accomplishment prompted me to deal with a huge, sluggish student loan.
And since credit cards were not a problem, I would pay, on average, three times the $ 300 minimum payment. In the end, it took me almost three years to pay back the student loan instead of the nine years I was allotted.
Paying off a big debt causes a heavy weight to fall from your shoulder. After paying off your loan, you increase the bank's amount. It's a terrible feeling to watch the number climb (even if you had to see it falling in the beginning), and it inspires you to keep it going.
If you are serious about financial freedom, you will have to shed some blood, sweat and tears.
Your 9 to 5 cannot cut it. If so, then you need to pursue it and look for money outside of your current job.
Some experts recommend keeping seven streams of income. If you have a 9 to 5 job, congratulations, you have one, only six more to go!
Now, you can look at your sources of income in two ways: active income (trading time for money) or passive income (money that can come to you even while you sleep).
If you trade your time for money, you are limited to the hours of the day. Here are some side jobs from which you can earn an active income:
If you don't have a lot of time to devote to earning an income, you can focus on increasing your income with passive income:
Fortunately, your seven streams of income can all come from the same source. For example, if you are an ecommerce specialist, your seven streams of income may come from creating seven different stores. And remember: You don't need to start with seven streams, you can build it over time.
If you do not pay your family for their funerals, debts, and taxes, then one for rainy days, retirement, and (sorry to be sick here) to make sure you die. Putting money on the side is important. Okay, now come back to that happy place.
If you've got that 9 to 5 job, talk to your company about adding a retirement plan, or check to see if you already have a cut. This deduction is withdrawn before it hits your account, so you never feel like you are losing money. And it is great to check it periodically and watch your savings grow.
Next, you want to save enough money for an emergency fund. Some experts say $ 10,000 is fine, while others say you have six months of salary. And if you make too much money, to be honest this number may seem too high. So instead, start with a goal you can afford - such as $ 100 your first month. And as you start earning more active or passive income, start increasing your goal from $ 500 per month to $ 500 bi-weekly and beyond. If you overspeed on credit and a high credit card bill arrives, do not use your emergency fund - focus on taking more active income opportunities so that you can pay it off faster.
The emergency fund is only for unplanned emergencies such as when a tree crashes at your home, a car accident requiring you to pay to get it out of pocket, or a trip to the hospital.
By setting aside money for rainy days and retirement, you'll be less likely to be where you are now: wishing for financial freedom.
Ultimately, the things that help you live a more fulfilling life will be the experiences you make, not your own products.
And are you buying things that make you happy in the long term? Do you have a loan to buy a bunch of goods that makes your life easier?
Now flip the switch.
What is your happiest memory? what were you doing? With whom you were?
Let's make more memories like this.
Maybe you have a friend whom you like to work outside. Invite him to workout at home for free on a YouTube playlist.
This night date. You want to make it unforgettable. You have never done good activity on Groupon for a fraction of the price.
You always dreamed of traveling to Rome. You are saving money for a year to experience your dream vacation. Go on that holiday looks guilt-free. You did not go into debt for this, you have earned it. Or you can become a digital nomad and travel the world while working abroad.
Life is made up of moments. Best friends and family come from quality time spent together. While some products can help get you closer to your family (such as weekly family video game nights), most of them do not add much value.
The money you do not have does not excuse that you have money.
Why?
Because if you want to pay yourself $ 1000 per payment period first, then whatever is left has to go towards the bills. And if you do not have enough to cover those bills, you are forced to take a side income to meet the costs.
By paying yourself first, you guarantee that you are always putting money aside to invest in yourself. By doing the opposite, you only get what's left, which is usually not enough to help you experience financial freedom.
You can pay yourself first in other ways as well. For example, if your company has a retirement savings program, you can ask to withdraw money for your retirement. This way you are investing in yourself and your future first. Money is deducted from your salary, so all that is left is money that you can set aside for your bills and expenses.
Compile a list of all your debts: mortgages, student loans, car loans, credit cards, and any other debt you have accumulated. Be sure to include any money borrowed from friends or family members over the years.
Now, take a deep breath. And another. Then add all the numbers.
How much debt do you have?
If it is a large number, it is not wrong, I promise I will share some ways to pay later in this article. If it's a small number, congratulations! Feel free to share your financial freedom tips in the comments below.
Next, take a look at all the money you have saved.
Compile a list of all your savings: savings accounts, stocks, company stock-matching programs, company retirement-matching programs, and retirement plans. Then we will add the recurring monthly payments you receive, such as salary, party money, and so on.
Keep these numbers in mind as we work through the next few financial freedom tips.
But remember that money is a good thing, even if it just takes a lot of burden.
You are eligible to achieve financial freedom.
According to you by Jane Cincario in terms of making money, you are a crook, people who do not make a lot of money, often feel shy when it comes to making money. And so the biggest hurdle that many people experience when it comes to making money is that they think it is bad to have money. Many blame it for being and want it. "We use it daily to extend our lives, yet we always focus on the negative about it," Cincario said of the money.
Food is a necessity just like food or water. It helps you buy the things you need and live the life you want.
To experience financial freedom, you need to see money as a way to help you achieve your dreams, fuel your energy, and live a stress-free life.
Because if you look at money negatively, you will see the possibilities of making and keeping it twisted.
 |
| Achieve Financial Freedom in 2020 - Sanjeev Nanda |
What is Financial Freedom?
Financial independence is about taking ownership of your finances. You have a dependable cashflow that allows you to live the life you want. You are not worried about how you will pay your bills or sudden expenses. And you got overwhelmed with debt.It is about recognizing that you need more money to pay off the loan and maybe your income is increasing with one favor - we'll get it in just a minute. It is also about planning for your long-term financial situation by actively saving for a rainy day or retirement.
Financial Freedom Tips by Sanjeev Nanda
1. Write Down Your Goals
Why do you need money?Do you want to get rid of debt for good? Are you desperate to avoid 9-to-5 pieces? Is there a place you always want to visit? Do you need to save for marriage, children or retirement?
When I achieved financial independence, it was because I connected it to an emotional goal. My goal was to get out of student loan debt and save for my first home. And honestly, it was a great experience seeing debt reduce and my savings increase.
I got so excited seeing the number change that I worked hard to make more money to see a major change in my personal finances. If I had not set a goal for anything emotional, would I have achieved my goal of financial freedom perhaps. I was desperate to get out of debt and move out of my parents' house. That frustration inspired me throughout my journey.
I misquoted that paper and completely forgot about it. And then one day, just a year later, when I was already living in my new house, I found it in my notebook. Certainly, I have accomplished all three things. The funny thing was that I was not consciously thinking about those goals.
You cannot complete everything you want in a month. But a year is a long time to progress on its goals. Make sure your target is connected to a specific number you want to hit. Believe it or not, you will start working towards the goals that are even without realizing it.
Knowing what you want to achieve makes financial freedom a million times easier.
2. Track Your Spending
An important step towards financial independence is tracking your spending.You can use tools like Mint, which will let you know how much money you are spending, which categories you are looking after, how much money you have in all your accounts, and how much debt you have.
Another good thing about Mint is that it allows you to set targets within the dashboard. You can keep an eye on your goals and know that depending on how much money you have invested in the month, you will hit that goal. Thus, you have to hold you accountable and remind you to keep paying for it.
After using Mint for a month, I managed to save some extra money towards my new Wedding Fund goal. Mint helped me stay focused on my goals and pushed me towards making more passive income to hit my financial milestones.
3. Spend Less
In 1958, Warren Buffett bought a five-bedroom house for $ 31,500 and has not moved out of it since. His net worth? An astounding $ 90.3 billion. He can buy a larger and more expensive house. But his frugality may very well be the reason that he is one of the richest people in the world.On the other hand, Kanye West is not afraid for his money. He lives in a $ 20 million mansion. And at one point, with a $ 53 million loan, he decided to ask Mark Zuckerberg on Twitter for $ 1 billion….
Difference between two super successful gentlemen? Buffett did not spend more than needed, and West spent money he does not have.
The truth is, many rich people do not look like rich people. Zuckerberg literally wears the same boring T-shirt and jeans every day.
Buying less stuff can really help you get rich.
By spending less, two things work in your favor. One, you will have more money to set aside for your financial freedom. Two, you will learn that you really need very little stuff to survive, which also helps you to put more money.
And this goes into our next point…
4. Pay Off Debt
Some people would consider it prudent to invest your money in shares rather than paying off your debt. If you are an expert stock picker, this is probably true. But if you have never invested in stocks before, then you can take more debt.Many people feel the same thing after ending their last loan payment: Relieved.
If you have a $ 50,000 loan, even if you have $ 30,000 in cash in the bank, you can't really call yourself financially free. You're still $ 20,000 in the hole.
Having money in the bank while paying someone else is not as glamorous, it brings you closer to financial freedom.
There are two main ways to pay off debt: snowball and avalanche. Snowball is when you first pay off the smallest debt. An avalanche occurs when you pay off a loan with the highest interest rate.
You need to decide what is best for you. But when I was working towards being debt-free, I did the snowball effect. It helped keep me more motivated. Since I was able to get rid of my first debt, a $ 1,200 credit card bill, in just one month, the feeling of accomplishment prompted me to deal with a huge, sluggish student loan.
And since credit cards were not a problem, I would pay, on average, three times the $ 300 minimum payment. In the end, it took me almost three years to pay back the student loan instead of the nine years I was allotted.
Paying off a big debt causes a heavy weight to fall from your shoulder. After paying off your loan, you increase the bank's amount. It's a terrible feeling to watch the number climb (even if you had to see it falling in the beginning), and it inspires you to keep it going.
5. Create Additional Sources of Income
Okay, so at this point, you're probably thinking, "My debt is so much more than my salary, how can I repay it if I don't make enough?"If you are serious about financial freedom, you will have to shed some blood, sweat and tears.
Your 9 to 5 cannot cut it. If so, then you need to pursue it and look for money outside of your current job.
Some experts recommend keeping seven streams of income. If you have a 9 to 5 job, congratulations, you have one, only six more to go!
Now, you can look at your sources of income in two ways: active income (trading time for money) or passive income (money that can come to you even while you sleep).
If you trade your time for money, you are limited to the hours of the day. Here are some side jobs from which you can earn an active income:
- Become a freelance writer getting a job at ProBlogger
- Help a business owner as a virtual assistant with jobs at Upwork
- Become an uber driver
- Help with domestic tasks on task rabbit
- Pick up the odd, oceanographic job on craigslist
- even more!
If you don't have a lot of time to devote to earning an income, you can focus on increasing your income with passive income:
- Launches an online store on Obero
- Start your own custom clothing business on Shopify
- Sell profitable content (blogs, e-books, courses, webinars, audiobooks, podcasts, apps)
- Become an affiliate marketer
- Buy property and rent them
- Invest in shares
Fortunately, your seven streams of income can all come from the same source. For example, if you are an ecommerce specialist, your seven streams of income may come from creating seven different stores. And remember: You don't need to start with seven streams, you can build it over time.
6. Invest in Your Future
The final financial freedom tip is an important one. Say that you follow the advice and recommendations in this article, get out of debt, and increase your savings. May be enough to help you right now. But what if the unexpected happens? Will you be ready for this?If you do not pay your family for their funerals, debts, and taxes, then one for rainy days, retirement, and (sorry to be sick here) to make sure you die. Putting money on the side is important. Okay, now come back to that happy place.
If you've got that 9 to 5 job, talk to your company about adding a retirement plan, or check to see if you already have a cut. This deduction is withdrawn before it hits your account, so you never feel like you are losing money. And it is great to check it periodically and watch your savings grow.
Next, you want to save enough money for an emergency fund. Some experts say $ 10,000 is fine, while others say you have six months of salary. And if you make too much money, to be honest this number may seem too high. So instead, start with a goal you can afford - such as $ 100 your first month. And as you start earning more active or passive income, start increasing your goal from $ 500 per month to $ 500 bi-weekly and beyond. If you overspeed on credit and a high credit card bill arrives, do not use your emergency fund - focus on taking more active income opportunities so that you can pay it off faster.
The emergency fund is only for unplanned emergencies such as when a tree crashes at your home, a car accident requiring you to pay to get it out of pocket, or a trip to the hospital.
By setting aside money for rainy days and retirement, you'll be less likely to be where you are now: wishing for financial freedom.
7. Buy Experiences Not Thing
Life is short. It is not about depositing all your cash until you turn 65. You are allowed to enjoy life while living.Ultimately, the things that help you live a more fulfilling life will be the experiences you make, not your own products.
And are you buying things that make you happy in the long term? Do you have a loan to buy a bunch of goods that makes your life easier?
Now flip the switch.
What is your happiest memory? what were you doing? With whom you were?
Let's make more memories like this.
Maybe you have a friend whom you like to work outside. Invite him to workout at home for free on a YouTube playlist.
This night date. You want to make it unforgettable. You have never done good activity on Groupon for a fraction of the price.
You always dreamed of traveling to Rome. You are saving money for a year to experience your dream vacation. Go on that holiday looks guilt-free. You did not go into debt for this, you have earned it. Or you can become a digital nomad and travel the world while working abroad.
Life is made up of moments. Best friends and family come from quality time spent together. While some products can help get you closer to your family (such as weekly family video game nights), most of them do not add much value.
The money you do not have does not excuse that you have money.
8. Pay Yourself First
You've probably heard the expression "pay yourself" before. But if you "pay yourself" before paying the bill, it means putting a specific amount in your savings account before paying anything else. And the act of paying oneself first has helped countless people gain close financial freedom.Why?
Because if you want to pay yourself $ 1000 per payment period first, then whatever is left has to go towards the bills. And if you do not have enough to cover those bills, you are forced to take a side income to meet the costs.
By paying yourself first, you guarantee that you are always putting money aside to invest in yourself. By doing the opposite, you only get what's left, which is usually not enough to help you experience financial freedom.
You can pay yourself first in other ways as well. For example, if your company has a retirement savings program, you can ask to withdraw money for your retirement. This way you are investing in yourself and your future first. Money is deducted from your salary, so all that is left is money that you can set aside for your bills and expenses.
9. Understand Where You’re At
You cannot achieve financial independence without knowing your starting point. How much debt you have, how much you save and how much money you need can be a depressing reality. But this is an important step in the right direction.Compile a list of all your debts: mortgages, student loans, car loans, credit cards, and any other debt you have accumulated. Be sure to include any money borrowed from friends or family members over the years.
Now, take a deep breath. And another. Then add all the numbers.
How much debt do you have?
If it is a large number, it is not wrong, I promise I will share some ways to pay later in this article. If it's a small number, congratulations! Feel free to share your financial freedom tips in the comments below.
Next, take a look at all the money you have saved.
Compile a list of all your savings: savings accounts, stocks, company stock-matching programs, company retirement-matching programs, and retirement plans. Then we will add the recurring monthly payments you receive, such as salary, party money, and so on.
Keep these numbers in mind as we work through the next few financial freedom tips.
10. Look at Money Positively
Debt can certainly be a little discouraging.But remember that money is a good thing, even if it just takes a lot of burden.
You are eligible to achieve financial freedom.
According to you by Jane Cincario in terms of making money, you are a crook, people who do not make a lot of money, often feel shy when it comes to making money. And so the biggest hurdle that many people experience when it comes to making money is that they think it is bad to have money. Many blame it for being and want it. "We use it daily to extend our lives, yet we always focus on the negative about it," Cincario said of the money.
Food is a necessity just like food or water. It helps you buy the things you need and live the life you want.
To experience financial freedom, you need to see money as a way to help you achieve your dreams, fuel your energy, and live a stress-free life.
Because if you look at money negatively, you will see the possibilities of making and keeping it twisted.
Hello, my name is Sanjeev Nanda. Sanjeev Nanda - I’m businessman with different ventures in the hospitality industry as well as the pharmaceutical industry. I love to invest in businesses and startups that are promising and hold the growth to the future.
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