Almost everyone wants to achieve financial freedom… who doesn’t right?
Financial freedom will allow us to live a life that we’ve always wanted without worrying about our financial state.
The definition of financial freedom can be different for everyone.
To one person it might be getting rid of debts. To some, it might be just living comfortably in a beach house with her dog, and for others, it might be traveling around the world, while sustaining herself and her family.
And to me, it’s simply having the pleasure of ordering food without looking at the price first! :p
So I’ve been searching for different ways to achieve financial freedom.
I’ve mixed everything here and I’ve done some of these things already!
And if you’re searching on how to have financial freedom, this post is for you! 🙂
10 Sure Ways On How To Have Financial Freedom That Works
1. Find Out Your Why
Find the reason why you want to have financial freedom. Dig deep and contemplate well.
Having a why will push you when the journey gets rough. And it will get rough.
Your why will serve as your anchor to hold your ground when life throws a ton of challenges at you!
My advice is to really find your why and perhaps put it on your vision board and as the wallpaper on your devices. This will help to remind you to keep on going and hustling!
Extra tip: Try to be VERY specific. Don’t just say “freedom”. Close your eyes and try to imagine YOUR life if you would have a steady income that can give you financial freedom.
2. Find Out Where You Are Right Now
It takes a lot of courage to think where you are financially right now. If you have debts, list down each one of them and their amounts. Take a look at your savings and your monthly expenses as well.
Having an honest look at where you are right now, is a good starting point.
This will help you with what needs to be paid first, and what needs to be paid last.
If you’re in need of a budgeting template, you can grab mine for FREE. It’s the exact template I use on a daily basis 🙂
3. Track Where Your Money Goes
This is important to know because this will help us see where we spend our money the most. Once we’ve tracked down everything, we get to choose where we should spend less money on.
Personally, I track all my expenses using a spreadsheet! Not only is it convenient but I get to see where my money goes.
Since I tracked my daily expense as well, I saw my spending pattern. Before I did this, my monthly budget on foods, groceries, and clothes wasn’t consistent.
Sometimes it would exceed my preferred spending amount. And this would affect the money that goes to savings and emergency fund.
So having a specific and clear expense sheet that will let you know what to prioritize when you receive or gain money!
4. Have A Budget
Now that you’ve written down where your money goes, it’s time to set up a budget for it.
The more specific a budget list is, the more effective it is.
Have a budget for everything that’s written down on your expense sheet. Doing this will control your expenses on a weekly or monthly basis.
In my post, on how to live a frugal lifestyle, I’ve shared a very popular budget strategy called the “50/30/20 budget rule”.
- 50% goes to your NEEDS
- 30% goes to your WANTS
- 20% goes to your SAVINGS/DEBTS
It’s a good starting point if you have no idea how to start a budget. You can personalize that rule and tailor it to your lifestyle!
5. Pay Off Your Debts
Let’s be honest, we can’t have financial freedom if we have debts. Debts take up a large amount portion of our salaries or sales.
What you can do is utilize “the debt snowball method”.
It’s a debt reduction strategy wherein you list down all your debts from the smallest to the biggest amount. The reason why it’s a popular method because a lot of people get to pay off debt a lot faster this way.
Since they get to cross out first the smaller debts, they get into a momentum of crossing out debts after debts.
If you want to learn more on how this works specifically, you can read more here from Dave Ramsey.
When I realized that paying off debts is one of the first stepping stone to financial freedom, I immediately listed a strategy for me to get rid of these debts the fastest way that I could.
And I can proudly say to you right now, that your girl just cleared off all of her 3 debts this year!
Once I paid off everything, I saw my savings go up at a faster rate! 💃
6. Live A Frugal Lifestyle
Since financial freedom doesn’t happen overnight, a change in lifestyle is a must.
Now that you’ve understood where your money goes, and you’ve tracked down your expenses, it’s time to live below your means.
Living a frugal lifestyle doesn’t mean you should starve yourself to save money. It doesn’t also mean that you won’t reward yourself when you’ve finished a major project at work.
Living frugally means being smart and economical with your money,
I’ve written a whole blog post on how you can live a frugal lifestyle as well! Go check it out and take note of number 2 – I’m sure it’s tough but I know a strong woman like yourself can manage it! You can read more about it here: How To Live A Frugal Lifestyle To Increase Savings FAST.
Also on that post, you’ll read about how you can save more money by writing down a budget, bringing a list on your grocery trip, and by simply staying healthy!
7. Invest In Yourself
This one is always overlooked.
People think that the only way to achieve more money is to constantly work. But that’s not always the case.
In this digital age, you can learn just about anything from your home. This is a REALLY GREAT ADVANTAGE with the ongoing pandemic and establishments are still closed.
Be wise with your time and invest in yourself. Nobody got rich watching Netflix all day..
Learn and try out new things! You can learn a new skill and practice it over time. A few years from now, you can for sure have the opportunity to monetize that skill!
There are a ton of free and paid courses on the internet. Just search for whatever you’re into!
Even Harvard gives out free online courses on their website! They even give out verified certificates if you’d like to receive one!
Don’t be afraid to start something you’re not familiar with. We all started from being a newbie, from having zero knowledge. Until we decided to take up something and dedicate ourselves to learn it.
Back then, I had no idea how to start and earn from my blogs. All I know is I wanted to write about the things that I was passionate about and share my experience.
So I did my own research, watched a ton of videos, and read a lot of resources online. I even paid a good amount of money to two affiliate marketing courses.
And third time’s the charm for me. My third affiliate marketing course was when I found out about Wealthy Affiliate!
Wealthy Affiliate has skyrocketed my learnings on that topic. Even though I was a bit of a newbie back then, the people there were really knowledgeable, friendly, and easy to contact!
If you don’t believe me, you can sign up here for free and check out the website and their free lessons that come with it!
There are other ways that you can invest in yourself without taking money out of your account. There are a lot of free courses out there for every niche. Plus, you can take advantage of Youtube as well. It’s all free and there’s a ton of valuable gems in that platform!
Also books you can read to master your finances:
- 10 Best Personal Finance Books For Young Adults
- Top 10 Best Investing Books For Beginners To Read This 2020
- 10 Best Stock Trading Books For Beginners To Start Reading This 2020
8. Learn More About The Financial Space
This is another way that you can invest in yourself. Learning about the financial space can affect your money mindset.
The lessons taught in this space can make its way at the back of your mind. You would think differently about how you spend your money and time.
In my free time, I listen to podcasts, and interviews by different financial or self-help people.
I listen to Ramit Sethi and Gary Vaynerchuk. Ramit’s recent videos talk about money, life, and mindset. While Gary talks about how to be happier as a person, how to make more money, different business strategies, business marketing ideas, and how you can leverage your strengths.
If you’re not sure where to start, just try to get to know the basics like the difference between a savings and a checking account. Or how to calculate the interest payment of all your outstanding debt. Or even to understand how banks are making money out of credit cards.
You’ll feel more equipped when you start getting to know how money works – and it definitely helps to pave the way to your financial freedom!
What I love about today’s technology is that you can filter out what you’d like to pay attention to. You can filter out the noise and only watch or listen to what’s important to you.
9. Create More Income Streams
Do you know how many income streams a millionaire has? An average income stream of a millionaire would be 7! Yep, you read that right, SEVEN INCOME STREAMS.
And in this section will be discussing some of the easiest ways on how you can achieve more than 1 income stream.
Other than having a full-time job, you can also get a side hustle. A side hustle can be in the form of a business or a second job.
Since the virus is affecting most of the businesses right now, there’s a slim chance that business owners are still hiring.
But don’t worry, the internet has our back!
You can apply for a part-time job as a virtual assistant, a content writer, a video editor, a mobile developer, customer support, and even admin support! The opportunity that the internet has given us is endless! And it’s our job to capitalize on it.
You can start looking for an online job at Upwork. And if you have trouble in making a profile that stands out from the rest, I got you covered girl! I’ve written a post on how you can get clients in no time!
Another form of side-hustle is selling things!
Think about what’s in demand right now? With the ongoing pandemic, people are advised to go out with a mask.
If you’re crafty and you can make a creative and effective mask, then there’s a high chance that you can make money by creating such a product!
I’ve written a post two months ago about how you can make money from home. I’ve listed down 12 ways on how you can do so! So if you don’t where to start, you can begin by reading it here: Ways To Make Money From Home In 2020 – Tried & Tested
Other related make money posts:
- 7 (Easy) Steps On How To Start A Blog For Free And Make Money
- 25 Best Side Hustles To Make Money On The Side This 2020
- Passive Income For Beginners: 4 Ways To Make Money Work For You
Some of what I did personally was to sell my clothes and my old gadgets! Not only am I decluttering my closet, but I’m also making money!
Gary Vaynerchuk even has a series of videos on Youtube, wherein he goes to garage sales and looks for very cheap toys that are being sold in Amazon or Ebay for a higher price! Then the price difference would be his profit.
This just shows that there are many ways to make a few dollars from selling. You might be even good at something that you can make a course out of and you can sell it.
You’re good at public speaking? Make a video about how to overcome stage fright and how to structure your talk to make people listen and be curious.
Have a knack for teaching? Make a course out of your favorite subject and try your best to be informative and bring value to your potential listeners!
Another popular income stream of millionaires would be what they call a “rental income”. This comes from renting off assets like a house, a condo unit, an apartment, or even just a room!
Back when I was in college, I rented a cheap house that was near the campus. Since at first, I was the only one who lived there, I thought why not advertise the other rooms that the house had? So I did just that and I became a master tenant!
It even came to a point that I wasn’t paying any rent anymore because the rent money was big enough to cover it. Plus, I get to save some of it as well!
So if you have an extra room in your place, you might want to consider renting that out. Or you can just list it to Airbnb!
Other than investing money in real estate, investing in the stock market is a common link among all wealthy people. They’ve invested in good companies that became big over time.
10. Set out short and long term goals
Set out a goal for your finances and life. You can separate them into two categories naming minor and major goals.
Those goals could be reaching $5000 in savings in 3 years, or being debt-free by the end of the year. A life goal can be switching careers to get a higher pay or quitting your corporate job to start your own business!
When I made a goal to be debt-free this year, I realigned my priorities to accomplish that goal. And when I achieved it, you know your girl had to celebrate! The celebration could be just treating yourself to a good restaurant, go to a spa, or even just relaxing in the movie theatres!
A life goal that I also attained this year was to quit my 9-5 job! I could’ve stayed in my corporate job but there was this feeling that kept bothering me.. I’ve always wanted to do something more and something of my own.
And if you’ve been feeling the same way too, I’ve listed a lot of tips there that can help you!
But let’s be realistic, it wouldn’t be advisable to quit a job when you’re in debt, right? One important statement that I wrote there was to work on your backup money or savings.
You should always have extra money for rainy days.
Take The Path Less Travelled
The road to a complete financial freedom is a long journey.
Most people give up along the way because they’ve set up their mind that financial freedom should happen in months or years. But in reality, it takes a long time to build up wealth and to live comfortably.
If it was so easy, there should be a higher number of people without debts, have a home to live in, have a sustainable business, and a lot more people should be happy where they are financially.
But sadly, that’s not the case. Statistics tell us otherwise. I’m not stating these facts to scare you and look the other way.
I’m telling you these things so that we will be much more prepared and be ready to push through when the going gets rough!
Now, which one of those ways will you try out first? And which ones are you already doing? Let me know below and let’s talk about it! 🙂