Time. Money. Freedom. After more of these things? Financial freedom should be your end goal. It may sound like a distant dream, but it is achievable with hard work, determination, strategic planning and a few sacrifices in the short term. Here’s how. (Disclaimer: This article contains spons0red content, meaning we may receive compensation from the products or services mentioned.)
Start with a strong financial foundation
The building blocks of financial freedom start with the way you manage money, day to day and month to month. Money essentials will ultimately dictate whether you make it or not.
You should have an accurate and effective budgeting process in place. Managing your outgoings and ensuring you have enough disposable income left over is crucial in giving yourself money to save or invest consistently.
A strong foundation also needs low levels of debt (none of the high-interest kind) and goals to work towards. Consider what financial freedom means to you and the goalposts you’re working towards.
Build passive income streams
One of the main goals of financial freedom is to reduce your reliance on work, whatever you consider that to be. To do this, you’ll probably need passive income streams to keep cash flowing in.
Passive income can vary from things like rental property income to returns on stocks and shares. The idea is to earn money doing the least amount possible, or at least something you enjoy doing.
Consider whether you have funds you can invest in property and other investments, or business ideas you could explore to start making money. Hopefully, you’ll stumble across a goldmine you can benefit from for the rest of your life.
Invest your money for the long-term
The way you use your money will largely dictate how successful your journey to and beyond financial freedom will be.
Unless you can save hundreds of thousands or millions, savings aren’t usually enough to afford the freedom lifestyle you’re aiming for. Even if you can, inflation will slowly eat away at their value over time.
The key is to invest. Investing your money helps it to grow over your lifetime, beating inflation and helping you afford the lifestyle you want in the long run. There’s always a level of risk with any investment, from low-risk options such as index funds and property to higher-risk options such as stock trading and market investment.
Your attitude to risk is important here – only do what you feel comfortable with. Speak to a qualified financial advisor if you’re not sure how to go about things.
Financial freedom is attainable, but it’s not easy. Start with the right foundations and work your way gradually to that end goal with smart investment decisions.