Financial freedom: a goal everyone aspires to accomplish, but often have a hard time doing so. Before anything, ask yourself this: what does it means to be financially free?
Being financially free means having full control over your finances. In other words, you’re not struggling to pay off debt, bills become an afterthought and you can safely money without worrying about not having enough left over. Unfortunately, many are strapped with their finances and the reasons are almost endless.
However, that doesn’t mean you should continue to be limited in how you spend your hard-earned money. In this article, we’ll be covering everything you need to help you become financially free.
What Keeps People From Being Financially Free?
There are too many reasons why people have little opportunity to spend their money freely. One reason, and a very common one at that, includes having too much debt. Often, that debt burden comes from habitual overspending.
Having poor spending habits is a main contributor. Constantly eating out at restaurants and purchasing coffee every day can have a profound effect on your budget. The same goes for those who buy everything that catches their eye in the store. Self-control is the most important skill to have when it comes to saving money.
Consumer debt comes in many different forms, ranging from car loans, to credit cards, and other personal loans. Debt payment can be an arduous task and it is made all the more punishing now as interest rates continue to climb higher and higher. If you fall behind on your regular payments, or even just on your minimum payments, your credit score will get impacted right away.
In addition to consumer debt, many of us have the necessary debts of life, such as mortgages and student loans. The vicious spiral of being stuck in debt can be quite demoralizing as it increasingly consumes a greater proportion of your income, your energy, and your morale. Fear not however – there are plenty of resources dedicated to getting yourself out of debt. All it takes is taking the first step and then sticking to the plan.
Becoming Financially Free
For those who are dedicated to improving their spending habits and improving their financial condition, there are many resources available as mentioned above. One option includes maintaining proper budgets using rules as the 10/20 rule.
Another way of becoming financially free is to simply increase your income. Financial freedom isn’t all about saving money; it’s also about making more money. Increasing your income allows you to bring in more cash and relieve the strain and stresses of being perpetually behind.
Let’s look at a few options.
Side Hustles
In today’s dynamic economy, many are turning to side hustles to diversify their income streams and attain financial security. A side hustle isn’t just a part-time job—it’s an entrepreneurial venture that allows individuals to monetize their passions, skills, or spare time outside their primary job.
From freelance writing and tutoring to selling handcrafted goods online or offering car rides through rideshare platforms, the options are vast and varied.
Survey sites are often a fantastic option to generate passive income. We’ve covered sites like Branded Survey in greater detail, if you are interested.
In the past, we’ve also looked at side hustle ideas such as driving for Doordash. Other ideas we’ve covered include side hustle ideas for retired teachers. In fact, some people even sell Pokemon cards online!
The beauty of side hustles is their flexibility; they can be scaled up or down based on one’s availability and ambition. For many, these ventures not only supplement income but also fuel passion and creativity.
Look For Ways to Make Passive Income
If side hustles aren’t your thing, these days, you can make quite a bit of extra cash through passive income. Passive income is revenue generated from another source that requires relatively little effort on your part.
A great way to make passive income is through investing. In the past, investing one’s money was something only wealthy people did. However, those times have changed; so much so, anyone can start investing.
While it might seem boring at first, investing is a great way to refocus that buyers’ itch or the buyers’ urge into investing. The thrill of buying an investment is often just as great as buying random item from a store!
What’s more is that there’s no shortage of investment methods to choose from. You can participate in the traditional stock market through brokers, which is when you choose a company selling stocks and buy them. Once purchased, you become the owner of a small portion of that company. You can then let the stocks accrue in value or simply collect dividends before selling them for more than you paid for.
Alternatively, you can also invest into real estate. Real estate can be an attractive investment to go with for a variety of reasons. For starters, it can be relatively less volatile than investing in stocks. You also have plenty of options to choose from as well. If you manage the property yourself, you can generate substantial rental income which you can use to pay off the mortgage with some cash potentially left over for yourself!
You can also invest into real estate shares, which function similarly to stock market shares. Instead of owning a fraction of a company, you own a small portion of an apartment complex. These shares constantly generate revenue when people rent them.
Other options for making passive income include affiliate marketing. Affiliate marketing is when you purchase products and services from another company and advertise it for them. Word of mouth is one of the most powerful assets a business can have, especially when it’s from the consumers. Through an affiliate program, you can use your social media and blogs to post links others can click on. When the link is clicked, you’ll earn a commission.
Invest in Yourself
Financial freedom isn’t just about saving money and paying off debt. It’s also about focusing on oneself. Being saddled with too many financial responsibilities can eat up a lot of your personal time.
That’s why you need to start investing in upskilling yourself so you can increase your income. A great way would be to pursue a college degree, a vocational course, or even a pursue a graduate’s degree. A graduate’s degree is an investment by itself, but the knowledge and skills you gain from it will be a significant help in your endeavors.
Education is not cheap and you typically have to pay from tuition upfront. Sadly the higher income comes much later! Students often pay for their degree by taking out a student loan. Student loans can help you pay for textbooks and equipment needed for your program. It’s important however to look for educational and student loans that offer reasonable interest rates and that are not predatory in nature. Additionally, the contract should allow you to pay off your loans on an accelerated schedule, if you choose to do that!
With today’s high interest rates, you’ll thank yourself for paying off the loan as quickly as possible! Since we’re on the topic of financial freedom, you will have to remember to factor in student loan payments in the future. Post-graduating, it would be great to hunt for a lender that helps you consolidate your loans into a single payment, which will make it easier for you to budget for.
Set Goals For Yourself
Having goals to strive for can make financial freedom so much easier to achieve. In fact, not having any goals is a common reason why people still struggle. Some of them don’t even have that many responsibilities; they simply have nothing to strive for.
Goals are meant to help people stay on track and remain motivated. This is why it’s important for you to set smart goals for yourself. When it comes to finances, your smart goal could be preparing to purchase a house, start a family, paying for a high-quality vehicle, or opening your own business. There are all kinds of different things you can accomplish.
Our website has plenty of resources for you to use to help you set your goals and get your financial life on track!
Consult a Financial Advisor
Saving money sounds simple enough, but it can be rather complex depending on your situation. If you’re in a situation where you’re unsure on what to do, this is why it’s highly recommended for you to consult a financial advisor. Financial advisors are masters of money and can help give you advice, set goals, and strategize the best way to pay off your debt. Before calling, make sure to do your research and read the reviews left by other clients.