Who doesn't want be free from living paycheck to paycheck? Here are a few steps I've taken to get a good start on my way to financial freedom
1. Get a reality check and figure out where you're at.
Where else will you start? It's important to know exactly where your finances stand and how much more losses can you tolerate before you sink in debt and never be able to get up. Getting a better picture of your financial status will guide you in establishing your goals and achieve financial freedom.
On my previous post, Going Through Lifestyle Inflation, I mentioned that I have a negative net worth but looking into it closely, I still have a few bucks in my name. It can't wipe off my long term debt, of course, but I can use it to pay for the current ones without touching the money I'm saving for my operation.
Basically, I'm broke but people wont notice; not even the merchants I owe to. That's a good start.
2. Set your goals
Decide what it is that you want the most and focus all your efforts in it. Consider what you find out in number one then set long term goals first to get a bigger picture of what you want for your future.
Now, achieving long term goals is a process so I suggest you to divide it into small ones.
My ultimate goal is to retire at the age of 35 so my short term goals include establishing/enhancing funds, paying off my debt at year end, starting out new investments, etc. Notice that these short term goals are directed towards achieving the long term.
Your course of action would differ depending on the goals you set in number two and your capacity to fulfill it base on number one.
If I were to enhance my funds fast, I could start by cutting off my expenses. Then again with what I'm earning, it would not be enough so I need to find another source of income. The success of my previous goal now depends on my capacity to get another job and earn more.
4. Keep Yourself Motivatd
Never forget your biggest "why". The reason why you started this should be big enough to keep you on track. There will be sacrifices along the way and some of it could be difficult ones that you may need something to just hold on to.
I enjoy sitting at home with my dog, reading and drinking coffee on a rainy day but since I may be taking a twelve hour job and a few gigs on weekends, I may not be able to do just that.
5. Revisit Number 2 and 3
You may or may not be crossing off your short term goals fast enough so don't forget to check it ones in a while.
Some of your strategies may also become inaccurate depending on the changes in the circumstances that you may need to adjust your courses of action as well.
I have a lot more to do to accomplish my goals so if you have any advice for me, leave a message on the comment section below. I'd appreciate it a lot.
- Aisiah Ezekyel