Financial freedom seems impossible, where do I start?
by Chris Hogan
We all know the feeling or the panic into our stomach when we see the bill for an unexpected car repair. How are we going to pay for that?
But what if a car repair was just an inconvenience? Instead of worrying, you pay the bill without thinking.
Do you feel a relief? That’s what financial freedom feels like.
Paying for a car repair without stress is just a small part of the picture. It’s more than that. It’s knowing you don’t have to worry about retirement. It’s the freedom to quit your JOB to do something you love, even if it means being paid less.
Financial freedom means you can make life decisions without stressing yourself too much about the financial impact, because you are prepared. You control your finances instead of being controlled by them.
Financial freedom does not mean that you are "free" of financial responsibility. Quite the opposite. Having complete control over your finances is the fruit of hard work, sacrifice and time. And all of that effort is worth it!
Ready to learn how to build a life of financial independence for you and your family? Start by defining what financial independence looks like for you.
What Does Financial Freedom Mean to You?
Financial freedom has to be personal. Dream big and be specific about your goal.
What does financial independence look like for you? Maybe it looks something like this:
Freedom to choose a career you love without worrying about money
Freedom to take an international trip every year
Freedom to pay cash for a new car
Freedom to retire a decade early
When you are financially independent, you have options. That may sound too good to be true, but you can do this! Here’s how to begin your own journey to financial freedom!
Step #1: Learn How to Manage Money
You won’t get ahead if you don’t have a plan for your money. Instead, you’ll find yourself wondering where your money went at the end of every month! That’s not financial independence; that’s a recipe for financial disaster
Building wealth is impossible if you’re living paycheck to paycheck. Give every dollar a name before the month begins, and track your spending throughout the month.
You won’t get to financial independence on accident. Budgeting is the first step to building wealth on purpose.
Step #2: Clean Up Your Finances
Once you start learning how to manage money, you may realize you have made some mistakes with your finances in the past. That’s okay! But if you want to be financially independent, you have to clean up the mess before you can start.
Most people feel like they got a raise when they start budgeting, so that’s good news for you.
Step #3: Be Smart About Your Career Choice
Your income is your biggest tool. There is no reason to get stuck in a job you don’t like, especially if it’s making you unhappy or even miserable. Finding a job that you enjoy and also supports your goals of financial security will help you enjoy the journey.
So what should you look for? Here are a few things to keep in mind:
Where do you want to be in 10 years?
Is there income potential?
Can you grow?
Do you enjoy the work
Do the benefits support your goals of financial freedom?
Your choice of career can have a big impact on your long-term financial plan, so take it seriously!
Step #4: Create a Strategy for Short-Term Savings
If your goal is financial freedom, you need a backup for the unexpected life events that happen to all of us, like car repairs, broken appliances and medical. That’s why you should increase your emergency fund to cover three to six months of expenses.
Having the cash on hand to cover an unexpected life event and gives you peace of mind and that is a critical part of your financial plan. Once you have savings, you’ll start to feel more flexibility in your budget. You’ll be able to say yes to shopping.
Step #5: Learn About Your Investment Options
Now that you have a plan for short-term savings, you’re ready to a financial advisor who can help you make the most of your long-term investment options.
The good news is the sooner you start investing, the more time your money has to grow.
Real Estate Investments
Your home should be part of your plan for financial freedom, not something holding you back from achieving it. That’s why it’s so important to make wise decisions about the kind of home you purchase and how you choose to finance it. If you buy a home that is a good investment, it will continue to grow in value as the years go by.
Step #6: Be Active in Your Journey to Financial Independence
Making the right investment decisions is the first step, but let your investments on autopilot is not an investment strategy.
A financial advisor can help you:
Make decisions about your investment strategy
Create a realistic plan for what financial independence looks like for you
Know what investment options you have beyond retirement
Reaching Financial Freedom
Financial freedom is about more than just being able to cover unexpected emergencies, like a car repair.
The fun really starts when you realize you can meet the needs of others. Imagine being able to bless a struggling family by paying for their car repair! It’s not just about you anymore; it’s about leaving a legacy!
If you live like no one else, later you can live and give like no one else.
All the hard work needed to get there is worth. You’ve got this!
Bill – conta
What if – e se
Relief – alívio
Feels like – se parece
Look like = se parece com
Retire - aposentar
Manage – gerenciar
Budget – orçamento / despesa
Budgeting – elaborar um orçamento
Income – renda
Get stuck – ficar preso