Just before we start making any talks on how to achieve financial freedom, let us discuss first what financial freedom really is and why you have to be mindful of financial freedom. Well first of all, financial freedom is otherwise considered as financial independence. This is the ability of a person to do what they want with their energy and time without worrying about money, ever…
What does it mean to be Financially Free?
Attaining financial independence may mean having ample amount of money used as investments or saved in bank accounts where you do not need to do any work.
Financial freedom may also mean owning multiple assets and businesses that provide sufficient cash flow where it already pays for your bills every month, without doing any work.
7 Small Steps to Financial Independence
Almost everyone wants to become financially free. The thing is, not everyone is aware on how they would get there or why is it so empowering.
Luckily, there are small steps that you can do to reach this goal.
- Build an emergency fund. Start with at least 1,000 dollars
- Pay debt using debt snowball
- Make savings of up 3 to 6 months of your equivalent salary
- Invest 15 percent of the household income to pretax retirement and IRA
- Have college funds for children
- Pay off mortgage early and;
- Build your wealth and learn to give