The path to your financial freedom entails a lot of steps. You must be determined to go through all of them no matter what. It involves a lot of sacrifices. You need to deny yourself today’s leisure for the sake of tomorrow. There is no doubt that it can be very hard. You also need to put in place plans that can help you improve your financial situation. The plans you choose need to be focused and consistent. This article looks at the steps you need to take to secure your financial freedom.
1. Start tracking your net worth
Your net worth is a good benchmark that can help you determine where you are and guide you to your dream destination. Look at how you divide your income into what you consume and what you save. Look at whether the money you save is finally consumed. Find out if the money is spent on worthy investments. If you realize that the money you save ends up getting consumed, then you are on the wrong path. Other important things you need to look at and optimize is your debt to income ratio. Finally, subtract liabilities from the money you have to find out your net worth.
2. Invest in yourself
After establishing your net worth, you need to invest in yourself. The best way to do this is to acquire a new skill that can help you pursue your financial freedom. Continue to invest in reading to help you continue creating wealth. But as you work hard to invest in yourself remember to stay consistent. For instance, if you secured a loan through Money Trumpet, it is ok. But paying it to borrow more money is not the way to go if you are seeking financial freedom.
3. Learn new investment ideas
Many investment opportunities out there have not been exploited. They range from investing in real estate to stocks to forex. Whichever investment you choose, do some research. If it can make you an extra dollar per day, it is a good investment. Learn about the fees you will be required to pay before you outlay your cash. Also, look at the downfall and the traps that are likely to hinder your progress in your new venture.
4. Diversify your sources of income
Building side hustles has enabled many people to find financial freedom. Side income may not be much but it can help you pay your recurrent bills and increase your savings. Freelance work is the best side hustle you can rely on to help you secure your financial freedom. If you have a passion for anything be it writing, photography or even drawing, use it to make some extra money. Also, you can choose to sell items on eBay or Amazon and raise the extra income you need. Other methods that are helping people secure financial freedom are:
· Selling art and craft at Etsy
· Selling design work at CrowdSpring
· Writing blogs to make money via ads and affiliate links
· Finding part-time jobs on AngelList
5. Be patient
This is the most important thing that people forget when seeking financial freedom. Note that you will not attain financial independence overnight. It takes time and your patience can be a great asset. Invest your time in building knowledge and watch your investment grow slowly.