The 10 commandments of reaching financial freedom
We all aspire to find financial freedom. To some this means having enough to finance your obligation while to others it means a life where debts are not tying you down. Whatever side you take, it takes some effort to achieve financial freedom. Here are Ten Commandments to follow on your way to financial freedom
You need to define your goals and objectives, come up with short and long terms plans that will help you get there. With a solid plan, aim at meeting each of the objectives. Tracking your progress will help you know whether you are on track.
- Do not be swayed easily
From time to time, you’ll be approached by marketers and bombarded with enticing offers and adverts. These will only lead you astray, stand firm and embrace the idea of satisfaction. With this attitude you will be in control of your spending, buying only that which is necessary and needed.
- Have a budget
You need to know where your money goes, have a budget in place and ensure that you stick to it. Also know where every cent comes from. This will help you reduce spending and increase the amount that you save.
- Aim at reducing the amount spent
We are able to save when we reduce our expenses. Tactically work at reducing the amount that you spend on a monthly basis. If you are paying more interest on your credit, then find a way of reducing it and increase your savings.
- Reduce the amount owed
The ultimate goal should be earning interest instead of paying it. You can achieve this by aggressively paying off the amount owed. You can start by paying off high interest rates or large amounts.
- Find a side hustle
If your salary or income is not enough to cater for your spending and saving, take action, find ways through which you can increase your income. It does not matter how small, as long as it is an additional income; embrace it and move from there.
- Do not live beyond your means
One reason why people over borrow is due to living beyond what they can afford at a given moment. Cut on expenses that are costing you savings and you will be on your journey towards financial freedom.
- Save first
Don’t wait to save what is left after you have spent. Set aside the amount to save even before you spend anything else. This will ensure that you have something going towards saving every month
- Do not spend what you have not earned
Always assume that you earn when the money gets into your account. The fact that you have gotten a bonus doesn’t give you the leeway to spend in anticipation of payment.
- Take stock
Periodically review whether you are on track. If not, make adjustments, learn some lessons and move on. If you are, pat yourself on the back and carry on, you’ll eventually make it.