Today’s post is a guest post from our friends about our favorite topic…financial freedom. Our friends offer 7 tips to help you push towards financial freedom. Sit back, get the coffee, and enjoy. If you are exited and want to start using a product to help you start saving or earning more money, stop by our financial freedom products page!
Building financial freedom requires dedication, discipline and consistency. The purpose of building financial freedom is to create enough streams of passive income to fund your day to day lifestyle. When you are financially free, your money should work for you, and you should have more time to do the things that make you feel happy and fulfilled.
Here are some essential tips to help you build financial freedom and start living the life you want to live.
Analyse Your Living Expenses
Pay attention to your biggest expense, this is often your living expenses. If you are spending over the odds just to survive, consider reducing your living costs to leave you with more money at the end of the month to invest.
For example, is your mortgage cost too high? If so, consider renting your house and moving into a smaller, less expensive property. Your rental income should cover your mortgage and provide you with extra income to invest. Your rent should be lower than your mortgage cost to leave you with extra cash to save or invest at the end of the month.
Pay Your Debts
If you have debts, pay them off as quickly as you possibly can. The quicker you reduce your debt the faster you can begin working towards financial freedom. Pay your smallest debt first and keep paying until you are debt-free.
Do a Financial Audit
Conduct a financial audit and check how much you spend on insurance and various other costs. Ask yourself some crucial questions, for example, does car insurance cover medical bills? Can you reduce certain costs by consolidating bills such as insurance premiums? Sift through your finances and identify where you can cut costs.
Cook and Meal Prep
Instead of wasting money on restaurant food, cook and prepare your meals in advance. You will be surprised at how much money you can save by doing this.
Get a Side Hustle
Take up a side hustle, consider getting a part-time job, drive for Uber or set up a small business on the side. Use the money you get from your part-time job to pay off your debts faster. Once you have paid off your debts, invest the money from your side hustle.
Build Assets
Build assets that will earn you money while you sleep. For example, creating a website with high-quality content about an interesting topic is a digital asset that could provide you with a long term passive income. Investing in a property when you have the funds to do so could also provide you with a long term passive income.
Invest
Consult a financial advisor if you have no idea how to invest your money, but investing should most certainly be part of your financial freedom plan.
Building financial freedom will certainly take time but the most important thing is that you start now. Start by analysing your finances and identifying areas where you can minimise spending. Pick up a side hustle, earn more, pay off debt, save and invest.
Hi
Good tips, thanks for sharing. Analysing spendings really is key, tracking and gett ingan overview on what is effectively kept from one’s paycheck. Wealth is what one is able to keep and put to work. Acquiring and building assets is another central piece to build the bridge towards FI. It’s amazing how focused our society is on ecactly the oposite:spending cash for stuff that increases our cost basis and furthermore, these things don’t generate anything for us. The focus on income generating assets such as company stocks really is key.
All the best
SavyFox