This is because once you have the reigns of control on your finances, you can start actively building the machinery you need to achieve financial freedom Having a budget sets you off on a path to better financial management. As such, saving brings you closer to financial freedom. This helps you to track your expenditure and as a result, you will be a better financial manager by sealing any wastage loop holes in your spending. That way, you can allocate various needs appropriate portions of your income. This is because a budget allows you to meticulously plan your expenditure according to how much you earn. This is a very clichéd statement but one that is vital to achieving financial freedom. The following are some of the strategies you can use to achieve financial freedom:įailing to plan is planning to fail. Instead, you will always be borrowing to cover expenses and this will hurt your chances of building long-term wealth.Therefore, it is important for everyone to aspire and work towards attaining true financial freedom. You will not be able to pay your utility bills on time, comfortably cover your children’s education, or pay for quality healthcare. Similarly, one cannot attain financial freedom if their monthly or annual expenses exceed their monthly or annual income.Īs such, without attaining financial freedom, you are bound to always play catch up with your finances. Financial bondageįor instance, you cannot be financially free if you are burdened with enormous debt that your current income cannot pay. There are many other definitions of financial freedom but they are all variations of the same fundamental precept financial freedom involves overcoming financial challenges that can essentially put you under bondage in the form of endless financial problems. According to Robert Kiyosaki, financial freedom is “ the freedom to be who you really are and do what you really want in life. This description is closely similar to what the author of the popular financial prosperity book- RichDad, Poor Dad- defines as financial freedom. But what exactly does financial freedom mean?Īccording to a Forbes article by Toby Mathis, financial freedom may “look a bit different from one individual to the next” but “the common denominator is the control and freedom to choose to do what you wish.” More and more people are investing their time and energy on financial literacy with the sole aim of achieving this so-called financial freedom. Besides the Blockchain, cryptocurrencies, and NFTs, financial freedom is among the most popular topics dominating contemporary conversation.
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