In simple words, it is the situation where you have sufficient passive income to have a comfortable, debt free lifestyle and work according to your preferences, not because of some needs or restrictions.
You don’t have to be a millionaire to enjoy financial freedom. That’s a BIG MYTH that misleads many people into believing that they don’t stand much chance of being financially independent. Financial freedom is different from making money.
In this article, you will find information about the various aspects of financial freedom. If your aim is to get rich, this may not prove to an insightful source of information for you.
Believe me. Gaining financial freedom is not a cakewalk but it is not impossible either. How much time and hard work it requires will depend on your financial conditioning. Let me explain how…
Financial conditioning stands for various common beliefs such as:
- Debt is a dirty word. Keep away from it.
- Working for a stable company will provide job security.
- Saving is a priority and spending should be minimized to enhance the level of savings.
- Hard work can yield a reasonable income.
- Emphasize on retirement planning and funding.
If you can recognize and agree with any of these statements, your financial conditioning will need modification and revision in order to achieve financial freedom and be your own boss!
The aim is to shift focus from the long term future to the present, from RETIREMENT PLANNING to WEALTH CREATION.
For doing so, you need to know your current financial position in accurate and exact terms. Make a list of your assets, liabilities and sources of income and expenditure. Don’t leave out any item so that you can arrive at the correct figure of your net worth (assets – liabilities) as of today. Your cash flow will be estimated through the income and expenses figures as it is the difference between income and expenditure.
Once you have determined the money flow and the net worth, you can successfully start planning for your financial freedom. Most people think that their first priority is to become debt-free. That’s why so many of them fail to achieve their dream of financial freedom.
Even though breaking free from the debt burden is essential, it will follow and not precede wealth creation. You will have to make money in order to pay-off your debts. Concentrate on leveraging your existing skills and developing new ones in order to build wealth.
Get rid of any previous beliefs and myths that surround financial freedom and make a fresh start. After all, it’s all in the mind. You have the power to direct your thoughts and actions towards better planning and execution on order to act logically and be financially independent through a rational and realistic approach.
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