9 Habits Will Help You Reach Financial Freedom
Become financially free? Financial freedom and independence – these terms are on everyone’s lips today. But what do they mean? What factors are essential to achieving financial freedom? You will get these and other answers in this post.
To make it equal planned to achieve financial freedom without Successions and the like is certainly not a sprint but a marathon. But there are also consoling aspects for the “simple mortals”: it is not uncommon for the average wage earners to become financially free, while many large wage earners cannot do it because of their complicated lifestyle combined with lack of financial education.
Table of Contents
The path to financial freedom
Achieving financial freedom is a goal for most people, but too many people cannot. Here are ten essential habits that lead the way.
Step #1: Learn How to Manage Money by making a Budget
I’m sure many of you want financial freedom, and you probably have goals for the future.
If you want to move on, stop wondering how to end the month, and/or want to take control of your finances so that you can learn how to achieve financial freedom, I recommend that you continue reading this article.
I have put together some of my best financial management tips in this post, and I think you can improve your finances by instilling some of the suggestions below into your life.
Create a budget.
If you are complaining that you don’t have enough money, but you don’t have a budget, well you need to make one! And if you spend more money than you earn, you also need a budget. If you have debts, you need to budget.
I don’t know how to tell you otherwise.
If you don’t do your accounts, you can’t get away with it. If you want to achieve financial freedom, do your accounts. Create a budget with the actual amount of expenses and your basic income without taking into account potential bonuses.
It can help you determine where your money problems are coming from, where you need to improve, and more. This can help you save money because you will see your spending, and you will most likely find out why you are having a problem with money.
Stop letting money control you.
If you want to take control of your financial life, you must take control of your money.
This means that you need to stop worrying about all the little things in life and create a plan of action so that when a small glitch happens to you, it won’t be challenging to resolve.
It’s up to you to manage the money and not the other way around. You should create a budget, get extra income, reduce your debt, have an emergency fund, cut your spending, to stop letting the money control you.
Step #2: Start Investing Now
Now you know how to stop depending on the arrival of your next salary. It’s time to find ways to make your money work, to quickly achieve financial independence.
The safest way for additional income in the long term is real estate investment, specifically rental investment. Investing in real estate will earn you handsome sums every month, thanks to the rents collected. Otherwise, placement via the stock exchange turns out to be attractive, if more risky, alternative.
If you do not yet have the resources to invest in real estate, you can opt for small investments within your means. The Internet offers many possibilities to help you generate passive income.
You can sell your skills without spending a lot of time on them. Instead of going to the different platforms that pay, you can also create your website.
Step #3: Clean Up Your Finances watch Your Credit
One of the first things to do if you want to achieve financial freedom is to put a brake on your debt. This is one of the first rules to follow if you’re going to be financially free.
The ideal would be to free yourself from any individual or family debt contracted and to learn to manage your daily life with what you have in hand.
You should know that credit can quickly become a real barrier to financial freedom.
Not only does it expose you to risks (seizure of goods) in certain situations, but it also contributes to accentuating social insecurity.
In this sense, being free of all credit is a plus that will facilitate your financial development, knowing that the main advantage will be to raise your standard of living. There are a few tips you can put into practice.
Step #4: Continuous Education
“Money is not important!”
How often do you say or hear this phrase in everyday life? In the end, it’s not just banking crises and falling interest rates that make people negative about finance.
Talking about money, organizing it and multiplying it remains taboo. It is better to delegate this difficult task to your banker, broker or insurance advisor.
But there is another way! Finances can be simple and exciting, you don’t have to settle for lousy interest rates and that doesn’t mean that the administrative time required increases massively or that you have to change careers in the financial sector.
Only those who are well trained in the field of money and others can easily and simply build up substantial wealth and have a carefree future. Hope and confidence are very bad guides!
- Doesn’t your whole life work for others?
- Not sacrificing everything for your career, but maybe watching your children’s football games on weekdays?
- Prevent your children from experiencing the same fate as you?
- Traveling the world while you are young?
- Live according to your ideas?
- Do you control your life and your time?
- Let your money work for you instead of working for your money and sacrifice most of your life?
With your answers to these and similar questions, there is a strong motivation to take charge of your finances and thus achieve the results you want.
Some authors have decided to help their readers achieve their financial goals. Of course, it is important to recognize the opportunities of the time and not to hesitate too long to seize them. A look at the economic past already shows this. There are always scenarios where money could have been invested to deal with wealth a few years later. Here are 3 for my recommendations.
Think and grow rich
A self-help book on the subject of money and the mindset of Napoleon Hill, which was published in 1937 and is still one of the author’s most famous works and in this category.
Hill has spent many years working hard on the secret to success. According to his research, it is important to give correct instructions to the subconscious.
You also need to have self-confidence, persistence and determination.
In his work, he describes 13 success laws that provide advice and are meant to level your path to material prosperity. “Think and get rich. The Laws of Success” is for me a complete work on money and wealth.
It was my first book on the subject at that time and it is still the best known and most popular book. important in this category. I can only advise you to read it several times to be able to record all the information.
Some parts of the reading must be seen in the context of today since the economy changed at that time. However, I can only recommend the book to you. A read for those who are not satisfied, who want to do more with their lives and who want to get rich.
The Richest Man in Babylon: Success Secrets of the Ancients
A work by George S. Clason, published for the first time in 1926 and still relevant today.
It is “in man in Babylon Richest”, as the title suggests, in the city of Babylon, which was one of the richest cities in the ancient world. The inhabitants of the city knew the value of money and followed the basic rules of the economy.
Thanks to clear parables, you will learn more about these rules and how you can use our payment methods competently. Although these stories are almost 100 years old, they have not lost their relevance.
Here you will also learn, for example, the trick to save or invest 1/10 (or 10%) of your money. I recommend the job to anyone who wants to learn the basics of money.
I found the stories presented in a very clear and understandable way. “The richest man in Babylon” is an excellent read for all beginners.
Rich Dad Poor Dad (What the Rich Teach Their Kids About Money – That the Poor and Middle Class Do Not!)
The author, businessman, and investor Robert Kiyosaki writes in his book “Rich dad poor daddy: what the rich teach their children about money” on the different opinions of the rich and the poor regarding money.
In his childhood, he had the opportunity to know the point of view from both sides. First, that his father is a primary school teacher and has little interest in becoming wealthy.
On the other hand, that of the father of his best friend, who may not have the best school education, but who knows the money well.
The curious young Kiyosaki learns a lot from “his” rich father and now shares his knowledge with us. The book is particularly suitable for beginners in the financial field and anyone interested in becoming an entrepreneur.
For me, reading was fluid, short stories and comparisons also relaxed the reading flow. An interesting overview of the various beliefs.
Step #5: Take Care of Your Health
There are so many things you can do with your finances – none of this will help you if you neglect your health. My family has always overlooked this, and we suddenly saw both ourselves and our friends how quickly someone could unexpectedly cross the Wupper.
Slowly, it begins to appear on me now that I have passed 30. As the saying goes: up to 25, the body forgives everything, but the consequences come at some point.
And then sooner or later, an unhealthy lifestyle will take its revenge.
Make sure you have a healthy diet. Of course, you should not and should not live like an ascetic, but a trickle of blood on the grill. Or treat yourself to a glass of wine, have fun with your friends with a beer or whiskey. But always in moderation. Five beers a day is not right; believe me.
Do you move regularly? By that, I don’t necessarily mean a permanent, high-performance sport, but running two to three times a week, a team sport, because I should also be able to use the gym.
I’m still in the phase where I have to force myself to do it. But as I said, I am slowly starting to notice the consequences of my lifestyle, which is not extremely unhealthy, but very poor in sport, but rich in meat.
Some processes also work under direction, so that you stay motivated to do something permanently. Because your physical form also determines your energy level and, therefore, your physical and mental power. So step on the gas and work on your body!
Step #6: Set Life Goals
Build passive income
Learn how to budget all your expenses for the coming month in advance. This will allow you to meet fixed payments, automatically withdrawn, to cover your main costs: rent, electricity, water, telephone subscription, Internet, or even a bank loan.
Whenever you receive a payout or any receipt, assess this share to never spend.
Once these payments have been deducted from your pay, you will be able to use the remaining part to provide for other secondary needs, such as the purchase of clothing, leisure, eating out, etc.
It is this technique that is both simple and rigorous, which will allow you to keep a positive control, as well as a margin of safety.
You have different options for creating passive income and achieving financial freedom. First of all: only make investments that you understand!
As already mentioned, you have many options. In addition to company stocks, real estate, or stocks, there is also another option. This possibility consists of creating your own business.
There are many different ways to make money on the Internet and start a business for yourself: affiliate marketing, dropshipping, merchandise, etc. The good thing is that you don’t have to spend as much money on the Internet as you do on a property, for example, to earn the same amount.
I can’t explain everything in detail here. The best thing to do is find out for yourself what works best for you on the Internet.
I am helping you!
You also have the opportunity to participate in my challenge and change your attitude towards money in 7 days and set your compass on financial freedom. Either write me a message on my Facebook page.
Step #7: Keep order
I understood this principle very late as a spontaneous and chaotic person. Financial freedom requires pleasure. Disorder destroys your happiness.
Business success and disease do not go hand in hand. Logical, right? I highly recommend that you make sure everything is clean, sorted, and handy in this area.
It is useless if your kitchen shines every day as if a bald head cleaning professional had cleaned it when your financial future lacks order and simplicity. The principle:
Clean the apartment once a month and take care of the finances.
I can also recommend that you scan whatever is possible. Unfortunately, there are still so many documents that arrive in the mail and then fall into files over the years.
I have got into the habit of scanning all letter mail so that I can find it in a few seconds with a simple click of the mouse.
Step #8: Live Below Your Means
You will never get satisfied with money, but with satisfaction, you will get money.
I know most people think the other way, but it is not. A satisfied and appreciative lifestyle helps you immensely on the path to wealth and is an underestimated habit.
Sunrises, nature walks, and mediation ultimately give you more peace and contentment than a big house, an expensive car, and a deep pool.
Knowing deeply that the essential things cost the least (money), you will have a new look at many aspects of life. For me, it means being thankful every morning, enjoying the food, and living with all of your senses. From the moment that great satisfaction spreads inside me, I don’t need much anymore.
The best condition to manage with less material goods.
In a quiet moment, think about the things that make you happy. You will see that there are straightforward and free things below.
Fill it with life, and you will strengthen your financial habits as a “side effect.”
Step #9: Get a Financial Advisor
I have read more books in the past four years than in the previous 35 years. I am a little angry with myself for not having started earlier.
Books, as old-fashioned as they seem, offer you huge benefits. I can read books quietly.
Reading is very focused and enjoyable for me. Another advantage of conventional paper reading is that you are forced to follow a predetermined path.
From the beginning to the end of the book. This reading path automatically takes you to subjects or subjects that you never took into account when browsing.
More food for thought. For example, I learned from Tony Robbin’s book “Money” * that my financial freedom is realistic.
High quality, with many cases of calculation and well described. I have also learned that conscious renunciation also means enjoyment.
This simple fact was so well presented and so motivating in the book “Unfortunately, cool, fat and lazy” * that I immediately started to do without.
Another perfect way to gain knowledge is to hear the biographies of your models. I have read a lot of CVs over the past few months, including those from Tony Robbins *, Steve Jobs *, and Elon Musk.
Just take your smartphone or laptop with you when you do the housework, find the biography you want on YouTube and Co., and listen to it while cleaning or driving.
You only learn about the success of successful people.
Increase your income
It is much more complicated than cutting spending.
You can try to create a passive income, for example, by writing a book or through interest and asset returns. You can work as much as possible in your spare time to speed things up.
Maybe you can combine your hobby with money?
But everyone needs time, breaks, and variety in life to stay healthy and feel good.
The path to financial freedom can be unexpectedly short. Most people are not even aware of it.
The first steps can be to drastically cut spending and invest savings with attractive returns, for example, in ETFs or stocks. And then let the savings sit as long as possible to benefit from the compound interest effect.
This is the purchase and conservation approach. This approach is not to trade securities back and forth. The advantage: it saves the high transaction costs that one usually has when buying and selling securities. And you save a lot of time and stress.
Determination and patience: the keys to success
Whoever you are, you can be financially free. However, the road to financial autonomy is more or less long and strewn with pitfalls. To get to your destination, you need to have determination and patience.
Financial freedom is not achieved overnight. It is a progressive process requiring daily efforts. In the beginning, you will certainly have a little trouble with managing your budget since you will have to continue to support yourself. But by being very determined, you will quickly reach this much-desired freedom.