I know what you are thinking.
Simple ways to achieve financial freedom?
There is nothing simple when it comes to money right?
Nothing is simple with money, yes, I understand that.
What I mean is that you make it easy for you. And you can achieve that by applying these solutions until it becomes a habit.
Habit is something you do as often as possible. Once an action becomes a habit, you can close your eyes and do it without even thinking about it.
These habits, listed below actually makes you wealthy.
It is not a one off thing. They are habits that should remain a part of you for the rest of your life.
Save more and invest the difference.
Save more in this economy?
Let me tell you something you don’t know about wealthy people.
They always, always have money to invest.
How do you think they come up with those funds?
They save like crazy!
So in good times, in bad times, in recession, in depression, anytime, they have lots of available money.
This is because they do not want to miss out on any opportunity.
The best opportunities always come in a recession.
Take for instance, while a lot of people are crying and complaining about the bad economy, there are few souls making tons of money on the stock market.
Some companies stock prices have risen more than 400% this year. That means, if you invested a 100,000 in any of them, that money will be worth 400,000.
Let me assure you, I am not here to promote the stock market, though that time will still come.
I am only trying to tell you while it is important to save even in good times and in bad times.
The habit of saving always allows you to take advantage of opportunities.
When you save more, there is always an avalanche of where to invest it.
The greatest task for you is to develop that habit first.
If you don’t have savings, start now to save. If you have savings already, start putting more money away.
It does not end in savings, you have to invest them.
- 5 Things You Should Never Do With Your Savings if You Want to Be Wealthy
- 7 Simple Ways to Save Your Money
- 6 Reasons Why You Should Save
Earn more and invest the difference
Earning more income aside from your main source of income is easier in the 21st Century because of the rise of the internet.
In the 20th Century, a lot of working class were content with a job. They will get a job and remain there until they retire.
It is easy for them because the jobs pay well and they were relatively safe.
We cannot say that for today’s jobs. You will even be lucky to get one.
If you have a job, do not allow it to be your only source of income. Be relentless in your search for other sources of income.
There are things you love to do, use your current salary to start developing it.
If you don’t have a business idea to develop, start seeking for one. When you find it, start learning as much as you can.
All you need is a phone with internet access. You can take as many courses as you want, subscribe to blogs that teach what you want.
There is nothing you cannot learn online these days. And there are lots of free materials too.
Before you know it, your idea will start to pay you.
That is the second source of income. If you develop and market it further, it can pay more than your current job.
That is when you will start thinking of quitting your job.
If you finally quit, then it will not be long before you start all over again – developing new skills, new abilities, learning more and then starting yet again another business.
Relying only on your job for as your source of income is not good for you.
First is that it will only take a miracle for you to achieve financial freedom.
Secondly, what if you are laid off? What if the company suddenly folded up?
It is always good to have a second source of income, even multiple sources of income.
They will save you a lot of stress and they will make you wealthy.
Spend less and invest the difference
To spend less money almost means the same thing as saying to save more money.
When you are doing both, you have the same intention of accumulating more money for yourself.
But they are a bit different.
Someone who is trying to spend less might not have any savings at all.
The person might belong in the category of people who are striving to learn how to save. So there is no saving more for them because they do not have savings in the first place.
When you have a high income and maybe less obligation, you are sure that if you worked hard on yourself, you can save more money.
That is when the two terms become the same thing because for you to start saving more from your income it simply means that you have to start spending less.
You are earning good money doesn’t mean your lifestyle should go through the roof.
It’s an opportunity to build your wealth.
Keep your lifestyle the way it was or make a little adjustment, then invest the remaining funds.
There are other little expenses that cause a lot a lot of havoc to our finances. Thing like sweets, biscuits etc.
Yes, they are small, but when they add up, you will be amazed.
Put your expenses under control and build your wealth.
To achieve financial freedom, you need to invest a lot.
You can see in the three points above, it is made clear – invest the difference.
When you save more, earn more and spend less, you are only freeing up more funds for investment.
Investment is the surest path to achieve financial freedom. It is what brings in more money into your bank account.
You should spend more time learning how to make better investments.
So that when you have that extra funds that come from saving more, earning more and spending less, you will have a lot of options where to invest it.