Financial security and freedom are two things that many people strive towards. However, getting there can be tricky and difficult, and many people don’t even know where to start, let alone if they’re on the right path or not. Whether you are looking to invest, enter the world of trading, or just simply save for a rainy day, there are several steps you can take that put you on the right path towards this financial freedom that you want.
Life Goals
The first step is to set life goals. You need to know what you are saving for and when you need to save it by. This will allow you to have a framework, as well as give you some direction. These life goals should also include being able to save for emergencies, such as surgery, or losing your job suddenly Including a “what if” takes most of the stress away financially if something were to happen.
Budgeting
Budgeting is easily one of the most important aspects of gaining financial freedom. You need to live within your means, even below your means in some aspects, and be able to spread your money out intelligently, so that your bases are covered, but you are still able to save/invest.
Start Investing Now
Investing and having an investment portfolio is one of the main ways to gain long-term financial security. Yes, being able to save for a holiday is great, and you should definitely do it, but once the money is spent, it’s gone. Investing in stocks, property, and even cryptocurrency, gives you a diverse portfolio and multiple avenues for profit. The sooner you start the better too, you can’t really “miss out”, but the sooner you start gives you the ability to invest for longer, meaning the payday after 10, 20, or even 30 years is much, much higher.
Get a Financial Advisor
A financial advisor ties into the previous 2 points. People may know what they want to do with their money, but they aren’t sure about which are the best options. This is where a financial advisor comes in.
They will give you direction with regards to investments, where to spend your money, how to save more, help you budget and help you save for the smaller things like a holiday or even a new car, all while ensuring your long-term financial safety is still intact.
Automated Savings
When you first start earning money, and you are paying rent and paying off a car or whatever it may be, saving can be tough. Setting up an automated savings account can be incredibly useful in this aspect. You can decide how much you want to save, and it can be a large or small amount, but it’s the fact that every month you will be saving, and every month you save is another month where you are a step closer to your financial goals.
Pay Off Credit Cards Quickly
Credit cards are almost a necessary evil in this day and age if you aren’t already rich. They can get you out of tight situations, and help you see out more difficult months. However, in the long term, they do not help your financial freedom goals. Try your best to pay off credit cards as quickly as you can, while not missing any payment days. This will also help you build a good credit score, which will most definitely be beneficial in the years to come.
Look After Your Belongings
This may seem like quite a small thing, but looking after your stuff properly can save a lot of money in the long run. This can apply to everything from your phone, to shoes and your car, all things that can be expensive to replace. Make sure your car is running correctly, change the oil when needed, check your tires regularly. Apply this logic across the board, looking after something is way, way cheaper than buying it new all the time.
Watch Your Health
Your short and long-term health are vitally important to ensuring you live a long life. Your health needs to be a priority, and making the correct choices with regards to it, can also save you a lot of money. Try to eat healthier, exercise regularly, give yourself the best possible chance to not get sick, not go to the doctor, and minimise the risk of having major health issues as you get older. These types of issues are sometimes unavoidable, but if they aren’t, you should be making the effort to stop them.
Keep On Top of Things
It’s all good and well knowing these points, but acting on them, and then staying on top of them is the main goal. There is no use just doing these things once or twice and then leaving them, they require maintenance. Make the time to check on your investments, make time to workout, keep learning and educating yourself on new ways to invest or save money, or learn how to improve what you are currently doing. Adapting and learning more is essential to long-term success. While all these tips don’t guarantee anything, because you never know what will happen, what they will do is give you the best possible chance at success. These points are also all things you can start doing right now.
What is essential to remember, is that you don’t need a lot of money to save for financial freedom, you just have to be consistent, stay on top of your money regularly, and you may well find yourself on the path to financial freedom.
