You can work towards financial freedom at any age. But what is financial freedom? Financial freedom is classified as having money coming in to cover your expenses and entertainment, allowing you to spend your time in whatever way you wish. When you are financially free, you have money coming in to support your lifestyle and you don’t need to swap any of your precious time for it.
Below, we’ll take a look at working towards financial freedom at any age.
Set Your Life Goals
Start by setting your life goals. It’s totally possible if you are vigilant to become financially free in around 5 years. It might take you less time, it might take you a little more. What’s important is that you get clear on what it is you want to achieve. This is because even saying ‘I want to be financially free’ is a vague goal. Ask yourself the following questions:
- Where do you want to be in a few years – 5 years, 10 years, etc?
- Who do you want to spend time with?
- What would you like to be doing?
Set life goals that really speak to you so you can build up the momentum to complete them.
Come up with a Budget
Now it’s time to come up with a budget. You need to take everything into account, such as your utility bills and your insurance. You need to make sure all of your expenses are covered, and that you cut back where possible. Look at areas you’re overspending currently and how you can stop that. The goal right now is to live below your means so you can actually put money away. You shouldn’t be spending every penny that you earn.
Pay off Your Debts in Full
Having debts can stop you from reaching financial freedom. If you have debts, it’s a good idea to pay these off before you attempt to put any money into savings or investments. This is because interest can be expensive, and can really add up if you’re not putting a significant amount towards the money you owe. Work on paying your debts off first in a way that helps you to build momentum and keep it up.
Create Automatic Savings
Once your debts are paid off, it’s time to save some money – everybody needs an emergency fund. Set up automatic savings so that you don’t even have to think about transferring the money. You can set it and forget it.
Start Investing Now
Investing is crucial if you want financial freedom. You will never become financially free with savings alone! Apps can help you if you’re just starting out, but you may want to speak to an expert or financial advisor if you want further help later on down the line.
Educate yourself on other ways to make money. Find ways to make passive income, for example. You will need to spend a little time on these methods, but once set up, you can spend the bare minimum.
Calculate Your Freedom Number Now
Why not get started by calculating your freedom number now? It’s probably much less than you think!