The path to financial freedom is neither straight nor uneventful. In fact, it can be a roller coaster ride of successes and failures. So how do we make sure that we get to our desired point of financial wellness? The financial journal “My Path to Financial Freedom” contained in this Avida Land planner offers important advise to those who are serious in getting there.
Why serious? Because attaining financial freedom requires wisdom, temperance, and hard work, nothing less. It seems that one has to be deadly serious about intentions and actions in order to laugh one’s way to the bank. Let me share some tips I got from this journal.
Tips to Attain Financial Freedom
Determine Your Financial Condition
Determine your real financial condition. List your assets and liabilities, income and expenses, as well as short-term and long-term goals. Your net worth or what is actually yours is computed by deducting total liabilities from total assets. Net cash flow is derived from deducting total expenses from total income. The result provides an idea as to how capable you are in funding future needs. By knowing exactly where you are, you can then set your financial goals.
Set Financial Goals
Financial goal is the prize you can set your eyes on as you work your way towards it. Stay focused and unwavering especially during the most difficult and trying stages. It is highly recommended to create visual reminders of your goals such as pictures that provides happy feeling instead of the difficulties in sacrifice.
Start with a Plan
The path to financial freedom starts with a plan which should be S.M.A.R.T. (specific, measurable, attainable, relevant, time-bound). You can actually make it smarter by making it exciting and rewarding. Whatever it is you decide on, make sure that it provides you a feeling of elation while giving a sense of pride and fulfillment.
Act on Your Plan
Work, save, and invest. Save a part of your income to invest so eventually your money can work for you. The three leading investments are securities, foreign exchange, and real estate.
Keep at it
Study your cash flow regularly so you will know if you can afford to take out a loan or make an outright purchase that involves a considerable amount. Remember to spend less than what you earn as doing otherwise will surely lead you to debt. Most importantly, protect yourself against financial disasters by having an emergency fund, health insurance, and life insurance.
Who wouldn’t like to attain financial freedom? It is unthinkable for someone not to aim for it. It has been said that humans were not born to just pay bills and be slaves to work. For us to truly LIVE, we must both be able to WORK and PLAY.