Yes, Financial Freedom is possible. Financial freedom means having enough savings, investments, and cash to afford the kind of life we desire. Attaining Financial Freedom can be challenging, especially when faced with growing debt, cash emergencies, medical problems, and overspending, but it is possible through discipline and careful planning.
In this article we’ll talk about is financial freedom possible and ways to achieve it. Let’s get started-
You can also read our article on How to achieve financial freedom in 5 years?
What is Financial Freedom:
What does Financial Freedom mean? Money that’s working for you by having enough savings, investments, and cash on hand to afford the kind of life you desire.
It’s not just a dream anymore. At Financialgem, we are dedicated to helping people reach their financial goals by providing them the tools they need to take control of their money and live freely.
What financial freedom actually means?
Financial freedom is not about being able to purchase every material item you want, though that’s certainly a plus. Rather, financial freedom means that you no longer have to work a job simply for money. Instead, financial freedom allows you to pursue what makes you happy – whether it’s living in an area of high opportunity or building a business and traveling around while you’re young and healthy enough to enjoy it.
Financial freedom also means that you can live your life on your own terms; financial independence allows you to make decisions based on what’s best for your family rather than working jobs just because they pay well. Most importantly, financial freedom means peace of mind: knowing that if something unexpected happens (like a layoff), there will be more than enough money to get through it until things are back on track.
Financial freedom Doesn’t Mean Having No Money.
Many people dream of financial freedom, but they often believe that freedom is about having more money than you can spend. If you have all the money in the world, then you’re free, right? Wrong! Financial freedom doesn’t mean having any money; it means having the freedom to do what you want with your money and your life. When you’re in debt up to your eyeballs, you don’t have any choice about how to spend your money—you need to make payments on your debts every month or else risk going bankrupt and ruining your life.
Taking back control over your own life
You might not realize how much control over your life you actually give to banks and other financial institutions, but trust us, it’s a lot. Financial freedom isn’t just about owning property or being able to buy things you want. In a way, financial freedom means taking back control over your own life.
You decide what to do with your money; you know where every single penny goes; and as a result, you feel more in charge of yourself than ever before. It’s an incredible feeling! So if you haven’t already, why not start taking steps towards financial freedom today? It all starts with small changes.
You can also read our article on How to achieve financial freedom before 30?
Why it makes sense to be financially independent
Most people want to be financially independent. According to a survey conducted by Wells Fargo, 66% of respondents said they’d like to reach their financial goals as soon as possible. Even though few people actually achieve their goals, that’s understandable: with money comes Freedom—financial freedom. Many people would love to have enough money saved up so they can live comfortably without worrying about finances every day. It means fewer stressors and more time for family and friends. But what does it mean to be financially independent? And how do you get there?
How it means having no money:
When most people hear about financial freedom, they think of having millions in their bank account, but that is definitely not necessary to achieve financial freedom. In fact, having a lot of money can complicate your life and make achieving financial freedom harder than if you just had less cash at your disposal. So what does it mean? It means living within your means. That’s it! If you have enough money to cover all of your expenses for an entire year, then congratulations! You are financially free!
Read our detailed article on How to achieve financial freedom faster?
How to start budgeting responsibly
Getting your financial house in order starts with budgeting. Budgeting is about thinking about what you have, what you want to spend money on, and how much you’re spending. Develop a budget that allows you to save money towards short-term and long-term goals while also staying financially responsible. A few steps to start planning your budget:
Figure out how much money comes into your household each month by combining all sources of income, such as paychecks, investment dividends, and so on. Next, figure out how much you can realistically afford to set aside for savings (short-term and long-term) and other expenses like debt payments or health insurance premiums.
After that, create categories for expenses like housing costs, transportation costs, food costs, entertainment costs, clothing costs (and more). Finally, track your spending for at least two months to see where your money goes and adjust accordingly. You can use stash app to budget and invest wisely accordingly
Ways to save money without it hurting
This can be accomplished by making a few changes in your daily life. Take public transportation to work instead of driving or walking, switch from bottled water to a reusable bottle, or get rid of an unnecessary monthly subscription like that gym membership you never use.
The list goes on, but once you start thinking about your expenses and how they affect your savings rate, it’s easy to see where some simple changes could save extra money each month. For example, if you cut out a $5 coffee habit three times per week (let’s say Monday, Wednesday, and Friday), then that’s $30 per month!
That adds up to $360 saved per year. Now do that for 10 years, and you’ve got $3,600 sitting in your bank account—not too shabby for something so simple! Plus, it feels good knowing that you’re saving yourself from buying coffee every day when there are other things to spend money on, like bills or vacations.
Small steps towards financial independence
Setting goals and putting in place a plan is crucial to getting out of debt and staying that way. Here are some steps to get you started. Your first step should be to create a budget. This is especially important if you have no idea where your money is going right now. Start by listing all of your expenses – rent/mortgage, utilities, car payments or lease payments (if applicable), groceries, gas, entertainment costs (bars/restaurants), student loan payments (if applicable), credit card minimum monthly payment (if applicable). Then list all sources of income:
- Paychecks from work or school
- Other income streams like side hustles or freelance gigs
- Retirement contributions
- Savings accounts
Finally, subtract all expenses from all income and see what you’re left with each month.
Financial Freedom relationship Your Health
If you are working a 9 to 5 job with high stress, then it could impact your health. If you are financially free, then you can choose lifestyle fitness according to your convenience. It is also important to maintain the body properly. Take care of your health by visiting doctors and dentists regularly, and follow advice from health professionals if you have any problems.
You can also read our article on Low stress jobs that make $100,000 per year.
You can achieve financial freedom by taking control of your finances and, more importantly, your life. If you just start adding multiple sources of income and start living within your means, then achieving financial freedom will not take long. Side income tips articles will also help you to l inch closer to achieving the financial freedom you deserve. Take a look at your finances, create additional income streams, pay down that debt, and before you know it, you’ll be debt-free.