Personal Finance

11 Expert Tips to Achieve Financial Freedom

Would you like the ability to live the lifestyle you desire without having to rely on anyone else for money? Without having to look up to anybody else to make the important decisions that can change your life? If Yes, it is the Financial Freedom that you are looking for.

Freedom is not given, it is won. You yourself are in-charge of claiming your financial freedom and without planning, you might be planning to fail. The 11 expert tips presented here ensure your victory towards the lifestyle that you have always dreamed about.

1. BE SMART – Set your financial Goals

Setting goals early and planning to work towards them is irreplaceable as they help in making directed efforts and minimize the chances of getting lost in the vast possibilities. Choosing goals that are realistic is very important in making big leaps towards your financial freedom.

2. THINK SMART – Plan your budget

Cut your dress according to your cloth by organizing your expenditure. This will not only limit your expenses but also empower you to make important decisions and enable you to take risks without keeping too much on the line as per your budgetary requirements. Remember to save before you spend by making your spending plan that suits you.

3. ACT SMART – Cut the Credit

Credit Cards give you purchasing power but also draw you towards debt. They are lucrative but at an excessive cost. Any kind of debt holds you back and snatches away your financial freedom. Any kind of debt should be managed and cleared as soon as possible. It is a right choice to cut the credit and if that means getting rid of credit cards, then Why not?

4. START SMART- Start SIP

Systematic Investment Plans are the perfect way to bring discipline in your investment routine. By contributing a small amount of money into the funds of your choice, you can achieve wealth creation by not having to worry about the risk of timing in the investment market. Power of Compounding: Compounding investment earnings can turn your small investments into a whopping sum after a period of time. The best way to take advantage of compounding is to start saving and investing wisely as early as possible.

5. STAY FOCUSED – Asset allocation and portfolio rebalancing

Rebalancing helps in maintaining the desired level of asset allocation in your investment portfolio by periodically buying or selling the assets. This is vital in achieving your financial freedom and goals in the timeframe you choose for the money and the level of risk you are willing to take.

6. CHOOSE TO DISCUSS – Convince people who matter most

Two is greater than one and coming to investment related decisions, discussing with your spouse is always the right way forward. The family that sticks together, grows together. Convincing the people who are affected the most by your financial decisions is of prime importance before making them.

7. PLAN AHEADOF TIME- Choose a career that grows

Choose your career wisely which will make money and motivate you for years to come. Goals set ahead of time are achieved through persistence which is achieved only if you have a job that motivates you instead of drowning you in the work-related pressure. If you enjoy your work, you will also enjoy the hard-work it brings. If it is too hard to handle, it is not the right choice to make.

8. TRUST THE TRUSTWORTHY – Choosing financial advisor

This is too important to not emphasize enough. Choosing the right financial advisor is an act of sharing your decision-making and risk-taking load to attain the financial freedom with the expertise your financial advisor has. The right financial advisor is a guide with whom you can discuss every step of your journey to financial freedom and completely rely on to get the right advice.

9. PLAN TAXES – Ahead of time

There is no way you were born to just pay bills and die”, it is also true for the taxes you pay. Your hard-earned and smart-earned money should be used where it can contribute the most towards your financial freedom, so why not plan your taxes ahead of time by making smart investments? Section 80C while helps your investments in tax saving. You will soon realize the importance of planning your taxes as a very important step of your journey.

10. GET INSURED – Ensure peace of mind

As acclaimed American financial Guru Suze Orman says, “A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life.” Do not get lured by investment linked insurance plans, in turn take term plan and health insurance plans. Getting your assets and loved ones’ safe and insured will set you free from the worries of these what-ifs without crushing your mental peace to pieces.

11. EMERGENCIES HAPPEN – And they will

Unpredictability is the most predictable thing about life. As financial guru Ezra Benson says, “Do not leave yourself or your family unprotected against financial storms… Build up savings.” Saving your hard-earned money is one of those things that you cannot and should not leave for tomorrow.

Create an emergency fund that amounts to up to 3 months of your monthly expenses to meet any kind of contingencies. Going by the habits of highly successful people, it should be a priority to attain your financial freedom.

In the end, remember that the path to Financial Freedom may appear intimidating in the beginning but is achievable, sooner and easier than you thought it to be. Working towards your own financial freedom is ultimately your choice. You can choose over your stresses and mundane lifestyle by managing your finances wisely and thus achieve the lifestyle that you desire without relying on anyone else but Yourself, because,“You have the Power.”

 

 

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