Why Is Financial Freedom So Important?
Have you ever dreamed of achieving financial freedom? All of us have some potential hidden inside of us, so why not make use of it? Most people are not living to their full potential partly because they do not have the time, will, or simply don’t care to study how to leave the routine they’re stuck into.
It is important to think big, do big things, and share everything you learn in the way. What else are we doing on this planet? It can’t be just to have the same routine for around 40 years and then retire when you’re more than 65 years old… That for no way can be the meaning of life. But it will be UNLESS you will want to change something about it.
How Can We Achieve Financial Freedom?
The best way to achieve financial freedom is to start early! Warren Buffet started at 11, nice eh?
The longer and a little bit complex answer are that you must have good financial literature and the right mindset.
Some things I consider crucial before investing in anything at all:
As you certainly have noticed by now, there’s no secret ingredient to make you rich from one moment to the other. If you aren’t able to wait years, even decades until you achieve something meaningful, then this process won’t be for you.
What Exactly Is Financial Freedom?
It is the capability to pay all of your expenses with your passive income.
This means the fewer expenses you have, the faster it will be to achieve financial freedom. Did you ever imagine a life where you could wake up at the hours you wish and do whatever you feel like for the rest of your days? Everyone does. Does everyone make something about it? Unfortunately no… But this blog exists to shift people’s minds on how they think about money in general and what they can do to change it.
How Long Does It Take?
No, it doesn’t take days, nor months. Usually takes several years. Some people get disappointed when they see it is not going to be a fast process. Actually, they should get excited, because there is actually ONE way to become financially free, and it’s easy and reachable to all. What’s not easy is to be committed in all the following years.
These number of years will depend on how much money you can save from your net income and invest it on a monthly basis. Whenever you receive your main source of income, invest an amount that you can afford to put in some stocks or other types of alternative investments. Then manage the rest of the money for your month wisely and in things you like.
Although, be cautious with your impulses because the faster you can control yourself from buying things you don’t really need, the quicker you’ll achieve your goal.
Pay Yourself First
After each salary, please pay yourself first. In case you have debts to pay, your first goal should be to monthly eliminate those debts and not entering in new ones. If you don’t need a fancy new car, don’t buy it. You don’t need a new expensive jacket, don’t buy it. You want to go on a very expensive trip now but you don’t really need it? Don’t buy it. Change your mindset to live happily in the moment and control yourself from buying things you DON’T need.
Remember, put a % of your salary in your investments each month and then only manage the rest of your month. Soon, the money you invest will be reinvested in itself. It’s called compound interest, and it’s truly wonderful. For a more in-depth way of understanding what I’m talking about please read The richest man in Babylon. It’s a story-telling book with a very important message. I highly recommend reading it.
Being Rich Is Not The Most Important
Financial freedom is. Having money but not time to spend it is not really worth much, is it? How much news there is of rich people whose life is completely miserable. They have what most people want, but they don’t have a clear reason why they’re doing what they’re doing. The reason must be clear in your head.
What’s the point of having a mansion, a Bugatti, four holiday houses, and a private jet when you DON’T have the time to enjoy all of it with calm and peace of mind? I would love that people would stop being so consumers about things they don’t really need and that they would be able to wait UNTIL they become financially free.
To be honest I don’t blame any of them because I was just the same. Sometimes it is hard to see things in a different way when in most cases the education most of us received was focused on the same goal: to have a good job and work for the rest of your life.
Let’s Not Waste More Time!
There’s not a better way to start changing the way you think about money than today. Money is not a big deal. Most people are afraid of talking about it because they were taught that way. Usually, they run away from the subject. How can you be good at something that you’re afraid of talking about it openly? I’m afraid you can’t.
Let’s start changing your mindset about money today. Post by post, we will make our dreams look very real. It is just a matter of time until it happens.
Do you have the will to change your life? If so, join me on this promising journey of financial freedom!
Books
Read the list of books that are helping me achieve financial freedom here.
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