5 Steps to Get Financial Freedom

Saturday, August 11, 2012

1. Make the decision, take action

To achieve financial freedom we have to change our beliefs about money to leave room  for a new lifestyle.
What is the motivation to change your life? Are you ready to become financially free and make your own decisions? What will you do in your free time?

As for me, it was the fact that I worked for people so many years creating web sites and I had never
 thought of creating my own web site and my project to achieve financial freedom.

One day a web master came to our company to explain his project, my boss had bought one of his web sites.
In the meetings I realized how was his lifestyle: independent because he was his own boss and with lots of revenue that came from their web sites and also dedicating a few hours.
He had created a system to make money.

I said to myself: I want that for me, so then I was inspired and decided to take action.

2. Pay all your debts

To pay all your debts is to overcome the addiction to credits, changing your buying habits and establishing a plan to pay everything you owe.
Make a budget to control expenses and sell what you do not use to pay debts faster.

The first freedom to discover is to live a live without debts!

3. Create an automatic savings system

Put a fixed amount each month aside into a separate savings account, you can create a monthly bank transfer to an account without a credit card, just a savings account to save money and get interest of investment in return.

Do not worry if at first is a small amount perhaps just 50 euros, but after 10 months you will have 500 euros!

It is a matter of creating new habits and learning a new financial education.

4. Invest


In the previous steps to learn about how to achieve financial freedom we have been really talking about controlling money, see?

Pay off debt, budgeting, saving .. and investing now!

Study diversified financial products and investments in simple and compound interest.

 Einstein spoke of the wonders of compound interest and he was a genius, so this is good advice.

5. Work for yourself

This is the big extra step and not only for economic reasons, it is to discover how to create residual income for things coming from you .. products, ideas, services ... something that comes from your creativity to provide value to people.

Discovering your creativity will give you great happiness, is a great personal satisfaction and a joy that increases your confidence in yourself.

This is the ultimate goal of having financial freedom: discover your creativity through your freedom.

It is simple: the more income you have the more you will invest and the more freedom you will gain.

It must be something that does not make you work until you drop down exhausted, although at first you have to give it a push and put effort into it.

You are not leaving the rat race to start the horse race and work even more, right?

Create a passive income system to get to a point where you will not need to exchange your time for money anymore. I'm not necessarily talking about starting a business on your own, it is just to work less but smarter.

If I were asked to explain in one sentence how to achieve financial freedom I would say: control your money or the bank will do it for you.
It takes discipline to manage money and acquire new habits and in no time you'll see that you'll get fantastic results!

2 comments:

Unknown said...

No debt, Investing in mutual funds thru' SIPs, Have some money in stocks,..
passive income part is to be improved for me,.. . currently it is only almost a month's income from my day job of an year,.... The thought of finanancial freedom is really exciting !

Libertad y Finanzas Personales said...

Hi Rajesh,
I'm glad for your progress and passion for financial freedom, the quest to be the master of your time. I'm sure you'll get better results soon!

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