In a world where financial stability is becoming more and more difficult to find, more and more people are looking for ways to achieve financial freedom. What is it? How do you achieve it? And once you have it, what do you do with the money? We’ll explore all of these questions and more in this post. So whether you’re a recent graduate struggling to make ends meet or a retiree who wants to make the most of your golden years, read on for tips on how to achieve financial freedom.
One day I asked my brother do you know what is Financial Freedom? He said yeah someday I will achieve it. But I asked How much money do you need to achieve this kind of freedom, he said “A lot”. I repeat the question a lot means how much? He said A lot means A lot.
This is the exact problem. We don’t know financial freedom, We don’t know how to achieve it. Somewhere and someone told us Financial Freedom means a lot of money. But my friend that’s not true. That’s not financial freedom.
Simply says financial freedom is when you don’t require to spend your time to earn money.
What is financial freedom?
Financial freedom is the ability to have total control of your finances. It means not owing anyone money, being able to do what you want with your money and not having to stress about bills or debt. While there is no one-size-fits-all answer to achieving financial freedom, there are specific steps you can take to get you closer to your goal. Keep in mind that it will likely require some discipline and hard work, but it is attainable for anyone willing to put in the effort.
How to calculate the amount require to financially free
Let’s understand this with an example If you’re doing a job, salary ₹35000. you’re strictly following your budgeting rule 50:30:20 ratio which is needs wants investment/savings. Then if you put 20% of 35000 which is 7000 per month in any stock market or crypto or fixed deposit in a good ratio, if you don’t know investing portfolio must read [Ideal] Investment Portfolio According to Your Age. Let’s assume you continue this investment for 40 years and create a balanced portfolio CAGR 12% which is a balanced return no need to be very bullish on crypto or like any kind of high volatility stock. You can easily create a 12% CAGR.
After 40 years your total investment is 33.6L and the Future value of this investment means you will have 8.24cr for the rest of your life. For the rest of your life, you don’t need to earn. If you invest for 30 years you will invest 25.2L and the Future value of this investment means you will have 2.45cr for the rest of your life. This is the power of planning and the power of compounding.
How to stay on track to maintain financial freedom
Once you’ve achieved financial freedom, the key to keeping it is to stay disciplined and make intelligent choices with your money. That means creating and sticking to a budget, being mindful of your spending, and investing in yourself. It’s important to remember that financial freedom isn’t a “one and done” thing—it’s something you have to work at every day. But it’s worth it! Not only does financial freedom give you the freedom to do what you want with your money, but it also makes you feel more in control of your life. You’re not at the mercy of your job or your debts. You’re in charge!
Sources of financial freedom
So how can you achieve financial freedom? There are a few avenues you can explore. One is to invest in assets such as stocks, property, or a business. Another option is to work toward becoming debt-free and saving money. Finally, another way to make money is to develop multiple income streams. Remember that financial freedom isn’t about becoming rich overnight, no matter which path you choose.
It’s about taking the necessary steps to gain control of your finances and build a life you’re proud of. And once you achieve it, what should you do with all that extra money? You could do several things, from saving for retirement or investing in property to taking a vacation or starting your own business. Whatever makes you happy!
How do you achieve financial freedom?
Achieving financial freedom is not easy. It takes much hard work, dedication, and focus. But it is achievable. Here are the three steps you need to take to achieve financial freedom:
- Set your goals: What do you want to achieve financially? What is your ideal lifestyle? What are your short-term and long-term goals?
- Create a plan: How will you achieve your goals? What are the steps you need to take? What is your budget? How much money can you save each month?
- Stay focused and motivated: It’s not going to be easy, but you have to stay focused and motivated if you want to achieve financial freedom. Make sure you are constantly learning and growing as an investor. Find a financial advisor or community that can help support and motivate you along the way.
What to do with the money once you achieve financial freedom
Congratulations! You’ve achieved financial freedom. Whether through investing, saving or a combination of the two, you’ve reached a point where you no longer have to worry about money. So what do you do now? This is an essential question because it’s too easy to let the money sit there and do nothing. But financial freedom doesn’t mean you have to stop working or retire early. You can do plenty of things with the money to make your life even better. Here are a few ideas:
- Invest in yourself: learning new skills or taking courses can help you grow as a person and increase your income potential
- Start your own business: this is a great way to make money and be your boss
- Travel the world: see new places and experience different cultures
- Enjoy life: go out to eat, see a movie, take a weekend getaway
How to stay on track and maintain financial freedom
Once you’ve reached your goal, it’s essential to stay on track and maintain your financial freedom. Here are a few tips to help you stay on track:
- Create a budget and stick to it
- Make a plan and stick to it
- Avoid overspending
- Track your net worth and progress
- Stay disciplined
The benefits of financial freedom
Once you achieve financial freedom, countless benefits come with it. You can finally free up your time and energy to do what you love rather than spending your days grinding away at a job you hate. You can also travel the world, spend time with your family and friends, or save for retirement and other long-term investments. But the best part is that you no longer have to worry about money. You have the freedom to choose whatever you want to do, without having to worry about whether or not you can afford it. So how do you achieve this elusive goal? It’s a lot simpler than you think. Read this article You will understand Financial Goal Setting – How to plan Your Financial Journey
Conclusion:
Achieving financial freedom is not easy, but it’s worth it. Once you have finally reached this goal, it’s crucial to stay on track and maintain your newfound financial stability. Use the money you have freed up to invest in yourself and your future, and enjoy the peace of mind and freedom that comes with being financially secure.