Many people in this world live their life as a compromise where they sacrifice one thing to attain some other thing for example, you might have seen many times people would like to go on an vacation or buy something grand. Which they would love to buy but still they can't buy can't travel, why?
Because, in back of their mind they know if I spend my money here, how will I pay my rent? how will I pay the EMI's? I can't pay my bills properly and they keep sacrificing like this in their life for many things. Because of which their life gets dependant on pay check to pay check. They don't love their job but still they can't leave that job.
Because all bulls are paid with that pay check they can't travel, because they are dependant on their job, where the money comes from there are so many problems like this because of which they spend their entire life in average and keep sacrificing.
You can change this entire situation and there are some proper methods to change it. There are some steps you need to follow if you want to achieve financial freedom.
Financial freedom means, you have the freedom of doing those things which you want to do in life.
You shouldn't think in back of your mind that if I travel, how will I pay the bills? all these things shouldn't be present in your mind and to do this, you need to achieve financial freedom.
If you want to live such a life, where you have financial freedom where you all those things which you desire then, right now you need to live a life which maximum people are not living. If you want to be in those 1% people who don't have any problem of money then, you shouldn't do those things which 99% people are doing today. To do all this, you need to remember one thing financial freedom is 80% behaviour and 20% knowledge.
What's the behaviour?
Well, you will know that one by one. I am going to say specific behaviours, which you should remove from your life. If you want to achieve financial freedom. All behaviours are very important, so don't miss even one.
Living life in denial look
The first behaviour is Living Life in Denial look. One big misconception many people have is, if they have to change their life they have to do grand steps and do big things that's when their life will change. Maximum people, when they think to change their life when they think to do something big, the biggest and the first mistake they do is they start setting goals larger than life very early they think, to change my life now, I will work like crazy will exercise, read book, get up early do this and do that like this, they set very big goals which are many times, unrealistic at their current level. They think, these are things they need to do to change their life but what if I say that if you want to change your life, you should not do big things but do small things and do it repeatedly.
You have to treat your financial life as your physical life example, you know this and understand this that you can't loose 10 kg weight overnight at-least in a healthy way just like that, you can't become millionaire overnight. The first behaviour you need to change you should know to change your small behaviours.
what are those small behaviours?
The first thing you need to do is to understand your current financial situation. Many times people live in denial they don't want to accept the fact that yes, they have a lot of EMI over them they are not able to live the life as they want they live in so denial, many time what they do is many times, they buy expensive things without thinking what will be it's implications why?
Because they live in denial they don't want to accept, they have a lot of loan and they are in despair so first thing, check, write and check right now what is your current income? and then on the other side, what are your expenses? where do you spent most of your money? how much is your monthly savings? if you have credit card, costly phone, or a car what are it's EMI's and limits? it's necessary for you to get out of this denial and to do that, do these small things which I said you.
Never think about emergency funds
Then comes second behaviour Never thinking about emergency fund. Many times this might have happened with you that you have to somewhere, when it's raining you wish from your heart that please if I get out it should stop raining but what happens, as you come out, it starts raining many times, while driving, people are stuck in traffic the line they are in, apart from that, all other lines move and as you go to other line, even that stucks.
If anything that can go wrong, will go wrong. If something gets a chance to go wrong, they go wrong. So, it's better to be prepared for it.
Most important thing which will take you to financial freedom is that, you must create an emergency fund where you must save at-least 1000 dollars. Your first aim in life must be that you can save this much money for yourself. This money which you will save don't use them in birthday parties or for buying pizza. This will be your emergency fund which must be there to use in your worst life situation. Similarly, create an emergency fund for yourself. So, that you have some money on tough times which will help you survive some months. So, that if anything happens or if your job goes, you can rely on that for few months.
Not using Debt
Then the next behaviour is Not Using Debt. You might have seen or learnt this, that if you take a snowball if you throw that from a hill full of snow, it will start rolling as it rolls, more snow sticks to it and as it comes down, that snowball becomes very big. If you want to create wealth and achieve financial freedom obviously, the most powerful weapon with you that is your income but your biggest enemy are your debts, loans, EMI's you must finish them, if you want to be rich and there is a method to finish these debts.
If you want to achieve financial freedom like that 1% then, right now do different than those 99% people. like you must know to live in less money you must increase sources of income by more work hard, that's when you will clear debts and achieve financial freedom.
Runaway Fund
Next behaviour is Create a Runaway Fund. Look, once you have cleared all your debts when you are completely debt free after this, don't lend money to anyone and don't spend money here and there. This is your time to create a runway. Now, your extra income you have which you were using to clear debts earlier using that, save up-to 3 months of living expenses, which is kind of extension of emergency fund. If there is any problem or emergency you can have some money, where you can do whatever you want can find, a new job can work on creating new sources of income for this, you need to give 3 months of time. Start creating runaway fund. This will help you a lot to achieve financial freedom in your life.
Never Think about Retirement
Then come, last point never thinking about retirement. There is a single trick to achieve financial freedom, where you have to do short term sacrifices for long term gains. Now, you don't have any debts you have made yourself, financially secure for 1 year by creating different funds. You are financially fit now.
It's time to maintain financial fitness like when you are physically fit after hard work then you just to do maintenance. Here, you don't need to do aggressive exercise nor you need to follow your diet strictly. Similarly, to maintain your financial health, You must invest 15% of your income for your retirement by investing consistently every month.
You will keep increasing runaway fund where, at some point, you will have so much money being financially free for your entire life by the current standard, current style of living you can spend like that entire life, without working a single day by doing all these you can say you are financially retreat and achieve financial freedom.
If you have any questions feel free to ask me in the comments below. Subscribe for advices >3
Note. I didn't advice you to invest or any other stuff. You have to do everything own your head.
This Blog is for Financially freedom. There is no use of infringement or copyrighted material. Everything was my own writing by my hands on my mobile screen. Thanks..