“Financial freedom” is a term that is often thrown around without proper explanation. Almost everyone talks about wanting financial freedom, though few people could even define it, let alone develop a concrete plan for attaining it. Here is everything you need to know about financial freedom and how to get it.
What Exactly is Financial Freedom?
Financial freedom, put simply, is the ability to be financially self-sufficient. This means not being dependent on any other person or entity for your financial well-being. As simple as it may sound, this is a goal that the vast majority of people are a very long way off. Debt, obligations and dependency on jobs for money make financial freedom impossible for most people. If you really want to become financially independent, however, there are three basic steps you will need to take.
Get Out of Debt
The first step in achieving financial freedom is to get out of debt. As long as you are stuck making payments on borrowed money, you will never be truly financially free. If necessary, get a debt consolidation attorney, such as one from the Law Office of Barbara B. Braziel, to help you restructure your debts and make them easier to pay down. Once you are out of debt, it’s also important to do anything you have to in order to stay out.
Save Your Money
A large component of financial freedom is to have a savings that can take care of you for a period of time if your normal income should be interrupted. Usually, a good starting point is to have enough set back for at least two months. If you can create a larger savings, however, more is always better.
Guarantee Your Own Income
Once you have successfully removed yourself from debt and created a savings, the only element of your financial security for which you are still dependent on someone else is your long-term income. This is why it’s important to find a way to make income on your own and outside of your job. The easiest way to do this is to start a small side business while keeping your job. If you need to, you can scale this side business up to meet your financial needs later on.
Becoming financially free is a process that will require hard work, dedication and even some sacrifice on your part. Once you have reached financial freedom, however, it will all be well worth it. Remember to do everything you can to be self-sufficient financially, and you’ll be on the road to eventual financial freedom.