The Road to Financial Freedom – Steps You Must Take
The Road to Financial Freedom – Steps You Must Take – Countless researches have been made and books written on the road to financial freedom but still yet, a lot many people are still struggling to break even and success still eludes a greater percentage of individuals in our contemporary society. What exactly is financial freedom and what are the factors responsible for it? These and similar questions I tend to answer in the course of this article.
Financial freedom put simply means having an income flow that far exceeds your compounded liabilities over your expected life span. In other words if you factor in your tax dues, your mortgages, medical or health care expenses, insurance premiums, college tuition fees, bank loans, debts, daily expenses etc and compound them over your expected life span taken into cognizance inflationary tendencies, if the result you obtain is a fraction of your annual income then, you can truly say you’ve achieve financial freedom. In a nutshell it simply implies that your income far outweighs your aggregated liabilities over your expected life span. Can this really be achieved or is it a theory propounded by financial experts? To be honest with you financial freedom is not a myth but a concrete reality that can be achieved with articulate planning and execution. The fact we are surrounded by individuals who are millionaires and billionaires is a testimony that it can be achieved. These individuals are not aliens with mystery powers but mere humans who adopted certain steps that ultimately ushered them into financial freedom. The steps they took are not mystery secrets but rather mere perfunctory considerations and exercises which many people tend to overlook in the course of their daily existence. Here are the steps they took.
Having a strong desire to be financially free. You must desire to have financial freedom before you can have it. Having a strong desire does not mean wishful thinking for something or mere day-dreaming. If you have a strong desire to be financially free, then, your thought will be saturated with you desire to be financially free and ideas on how to achieve it will start springing forth. All round us are product s of human thought from the simplest invention to the most complicated technology of recent times. All these things were once thoughts and desires but today they are now concrete realities. If you strongly desire financial freedom then, you can truly achieve it.
Next in line is financial planning. Desire will put ideas into your head but planning will order those ideas in such a way that they become realistically possible. You must have a financial plan or risk failure. A journey without a plan is an effort in futility. A financial plan must be objective, realistic, specific and quantified within a time frame. Your financial plan must be written and drawn out carefully. Don’t make abstract plans or say you have your plan in your imagination. Make it solid reality by penning it down carefully. Once your financial plans are carefully written out, you get the push to do something about them each time you view them on print.
After carefully making your financial plan and writing it out, then, you need to optimize it. Optimizing you financial plan involves cross-checking it and picking loopholes. If you are not knowledgeable enough to do it your self, you can seek expert advice on your financial plan. Why not consider giving it to financial planner for more credible assessment. Bad plans can be catastrophic and expensive in the long run. Exposing your plans to professionals or seeking expert advice will save you the agony of complete failure or fiasco and minimize the rise in carrying out your plans. Although it may cost you a bit money, but better pay and get what you pay for, than risk losing everything with a badly laid out financial plan.
Lastly, execute your financial plan. Even the best financial plan would be useless if nothing is done about it. Merely having a paper financial plan, though, a right step is not enough to usher you to the gate-way of financial freedom. Executing your financial plans may involve setting out some specific amount from your monthly stipend and investing it. If such was your plan why not go further in opening a separate bank account and lodging those monies into it. Sometimes the times may be tough but if you learn to stick to your plan, come what may, then you are on your way to financial freedom. Researches have shown that those that who stick to their plans willy-nilly still manage to turn out better than those who make no plans. So always do your best to execute your financial plan irrespective of economic climate. Manage to squeeze out something always that would aid you in keeping to your financial plan. Don’t give yourself excuses as there will always be an excuse for failure. See your plan as a no-turning-back matter. Always push forward in executing it even a little step at a time will ultimately bring you close to the doors of financial freedom. Don’t mortgage your future. Start doing something for yourself and the time to do it is right now – execute your financial plan!