So firstly what is Financial Freedom…it’s whatever you think it is to you. It could be you’re debt free, it could mean that you’re able to retire and not get on a pension, it could be that you have a certain amount of savings, or it could just mean that you have no worries anymore when it comes to money.
And as I kind of feel, there are different levels of financial freedom that I want to experience in my life, I’m currently in one stage and can’t wait for the next stage when I am completely good debt free, however I still count myself as financially free because of these other factors it brings to my life:
I have been working with those who want feel like they don’t have quite enough, who want to get their spending under control and who instead want to be able to rapidly reduce their debt, create savings plans and say YES to what they truly want in life or in other words reach financial freedom.
In all of this work that I have been doing I have come to realise there are simple but essential steps you need to take to get to financial freedom. It’s not this difficult and unattainable unicorn that most think.
So what are the steps???
- Get mind ready – get real of your current financial position
This is the most important element to you reaching financial freedom but so many other coaches don’t even touch on this. The more research I have done in this area the more I know this is makes the difference between you achieving your goals and not achieving them.
How do you get mind ready?
– Examine your current money mindset and focus on changing any negative views you have about your money and its situation to be positive and no longer negative.
– Look at your money beliefs – examine if there is anything that is holding you back from truly achieving financial freedom because of beliefs you may hold deep down.
– Understand the difference between your needs and wants so that you can start focusing solely on what you need.
- Set goals financially & for life
There is so much power behind being focused on what we truly want in life. Goals can include those day dreams you have and aren’t just limited to your money situation.
When goal setting its important to actually look at the goal and break it down to as many small goals as possible. The more you break it down and the more you make the goal actually achievable the more that you’ll stick to the goals process and actually reach your goals.
- Build a budget to know where the money is currently going and where it should be going in the future
It’s that ‘B’ word. It frightens off so many people, but it doesn’t have to. It doesn’t have to be this paralysing document, it doesn’t have to be something that stops you from doing the things you truly want.
This is a document that actually does the opposite, it helps you to create the life you actually want, it’s the pinnacle piece that gets you financial freedom.
- Build an Emergency Fund
An Emergency Fund is the difference between money worries and no money worries. Ensuring that you always have money for any emergency that may pop up in your life means that you can truly relax and feel that financial freedom.
- Pay off Debt
Paying off debt in accordance with the Debt Triangle which is what I have come up with is the easiest and most efficient way to pay it off, keep on track in paying it off and having an easy strategy to get it paid off as quickly as possible.
- Savings Plans in Accordance for your Goals and Retirement Needs.
You might be 50 years off retirement or 5 years it doesn’t matter we all need to be able to create savings in order for us to reach our financial goals. You can also be creating savings whilst paying off your debt. It’s all about making sure you’re being able to say YES to what you truly want in life.
- Living an Amazing life of Financial Freedom
This part is all up to you, having followed all the other steps you should be well on your way to financial freedom.
As I said previously financial freedom is whatever you want it to mean. It could mean that you’re on top of all the steps and know 100% what’s happening with your money!
Do you want to know more about these steps???