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Money. One of the single most important things in our lives that determines most of what we experience in life. What we eat, where we go to school, how good our health care is…everything really. Money determines the quality of our lives whether we want to believe that or not.
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The saddest part of me saying all this is knowing that because money plays such an integral part in our lives, some are imprisoned by the need to get and keep as much as possible. Sometimes, though, no matter how hard you try, you never seem to get control of their finances, because of the lack the knowledge of how to become financially free. Financial freedom is one of the main ways to truly have control over your finances and by extension your life.
If you don’t master your finances and achieve financial freedom, you will forever feel imprisoned by money. This is why I wrote this post. As a young person on a mission to financial freedom-the ability to work smart enough so that in a few years, I can live my life without needing to physically work for money-I wanted to share some of the top tricks I have learned from others who have mastered their finances and are living financially free lifestyles.
Before we start, financial freedom is more than being able to afford all your expenses comfortably. It’s about never again having to worry about the lack of money. Having peace of mind when the subject of money comes up because you’ve invested either your time or money wisely and can see great results from your efforts. It’s about being confident and fully aware of your finances and how to keep it invested and safe and also how to keep increasing it year after year.
Here are awesome tips that will help you get on the right track to achieve this kind of freedom.
1. Read this book! Seriously!
Click here to purchase: Rich Dad’s CASHFLOW Quadrant: Rich Dad’s Guide to Financial Freedom
One of the most life changing experiences of my life came when I read this book. This book made me finally understand what money was and made me understand my need to have a good relationship with money. It also helped me accept the fact that anyone and I mean anyone, can live a financially free lifestyle by doing three important things:
1. Investing in financial education by reading books and studying business successes and failures.
2. Increasing financial IQ
3. Investing in good cash flowing assets
It’s been over two years since I was introduced to this book and I’ve since read ALL Robert Kiyosaki’s books as well as others he recommends, and those that I come across on my own. My whole life has changed since. But what’s been the best is that I have a passion for life now. I wake up every morning knowing that I’m on a journey of working towards what I love to do and helping others along the way. And eventually being able to achieve financial freedom to where I don’t have terrible money problems anymore. This little book has helped me to really understand what financial freedom is and has helped me come up with a plan of how I can become financially free by focusing on cash flow. I suggest that you read it too if you really want to become financially free.
2. Get rid of all your bad debt
A terrible problem that many people face is that they’re drowning in bad debt. Again, this is something I learned from reading the Rich Dad’s Series. Bad debt is any debt that you carry that doesn’t bring in positive cash flow into your life. My advice to you if you want to be financially free is to pay those off and try to acquire good debt instead. Yes, there is such a thing as good debt. You can check out this book below to get a deeper understanding of what this all really means.
3. Save money to invest in cash flowing assets
Many times we save money and invest it into non-cash flowing assets or what many financially free people like to call liabilities. Sometimes there’s nothing to do about it. If you’re a typical working person, you need to get this car (a liability) in order to get to work. You also need a home for your family to live in. There’s no going around it. If you want to become financially free, you need to learn how to also invest you hard earned money into assets so that your money starts to work for you instead of you having to work from money for your whole life. This is the best way to achieve financial freedom. If you are at this point in life where you have money to invest, learn how to best invest your money by reading this book.
4. Start a profitable side business in the meantime while you work on your bigger dreams
If you’re not at this point where you have money to invest, then you also have the option to start a side business. You can look into starting a side business online as a way to increase your finances to help you invest in your real dreams later on. I personally am at that point. Therefore, I choose to invest in starting a website where I share my knowledge of money. I started my website/blog for $50. I have since started to make some great extra money from it, and while this is awesome since I plan on using income generated from this blog to invest in my bigger ideas the most important thing for me is my ability to learn FROM this side business/blog.
Here are a few important business skills that I will be able to learn from this side business
- I will be able to learn effective marketing,
- How to budget business income properly
- How to network effectively
- How to take a business from $0-successful
- Most importantly learn how to make business mistakes and bounce back.
All this valuable information will be able to translate into my business/businesses in a few years to come.
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5. Get your spending under control
Another super important step to becoming financially free is being able to manage your money…exceptionally well. Yes, financial freedom does involve making large sums of money (if you’re smart, more than you will ever need). However, If you’re not keen to manage this money properly, you will quickly get back to square one. Many of us are not yet financially free as yet, however, now is the best time to learn how to manage our income/money. If we master it now when we’re only making the average amount of money, we not only have a chance to become financially free faster than the average person, we also have the ability to remain financially free for as long as we continue to manage our money well. If you can have control of your money, then you’re truly free!
6. Map out a financial plan for your future
Have you thought of your financial future? This is one thing that is constantly on my mind since I understand that in order to live a good quality life, one must have sufficient finances to not only live well while in the prime of life, but to also be able to live just as well when one has aged. According to statistics, many people experience a drastic decrease in quality of life when they leave the world of work. This is mainly due to the fact that they have left work and their income is now cut in half-inmost cases more than half. However, statistics also show that living expenses such as medical expenses increase as we age. Therefore, many elderly folks end up having to depend on their kids for support. Here is an article showing how unprepared most of us currently are for retirement. In order to avoid this, you need to create a solid financial plan for your future so that your life remains the same or improves as you age.
7. Make it a priority to become financially literate
A super important tip that I have for you above all is to become financially literate. With financial literacy, you will see the word in a completely different light. You will understand money better. Your spending habits will change for the better, the way you approach money and other situations will improve. The way you look at people will change. And most importantly, you will begin to lose your fear of not having money. Instead, you will start looking at situations as great opportunities for financial growth, rather than the opposite. After I started to educate myself about money, I got a renewed zest for living mainly because I started to see more opportunities for growth rather than problems that I couldn’t solve. I have more confidence in my ability to provide value while making money doing so. The books above can help guide you along your path to financial freedom. It just takes a few mindset changes and you will be on your way to actually enjoy life and living life as you truly wish too!
These are all really awesome tips if you really want to become financially free. And the bottom line is that this is something that more people should be striving for in their lifetime. So start working on your financial freedom plan today so that your life can improve!