The desire for financial freedom is universal to everyone: who wouldn’t want to live without a financial leash?
No one knows when the next financial crash is due and no wants to experience the scarcity that a financial crisis brings. So educating yourself on how to become financially free is essential to gaining true peace of mind.
Eighth-grade dropout turned entrepreneur/investor, Robert Kiyosaki, is better known the author of ‘Rich Dad Poor Dad’, the most popular personal finance book of all time. Some would call it the ultimate financial freedom handbook!
Whatever you choose to do in life, every decision you make has consequences.
The repercussions of your actions can be good or bad—but when it comes to financial management, poor actions can lead to irreversible damage to finances. That’s why it’s so important to be fully accountable in the management and acquisitions of your finances. From your purchases, to your credit and your investments.
As the years go by, society’s spending habits tend to move more and more into consumerism due to brands finding ever-more creative ways to push their products in our faces (even when we don’t necessarily need them).
This cans seriously affect your financial future if you’re spending your money instead of investing it. A good way to tackle your spending splurges is to ask your self at the moment, once you pick up the item that you feel you desperately ‘need’, “Will I die, if I don’t get this item?”
99% of the time the answer will be no—the other 1% is the food, medicine, etc that we do need to stay alive! Shifting your mindset can be hard when you start, but it will get easier as you realise how little you actually NEED.
Learning how to budget is an essential practice for to achieving the financial freedom you desire!
Budgeting gives you the parameters and guidelines you need in order to properly control and manage your expenses. Simply put, a budget gives you a better sense of accountability. Budgeting is ultimately the tool that will help you better secure your personal finances.
If you need help getting started, there are loads of apps out there to help you design a budget that works for you.
A fundamental practice to achieving financial freedom is to work for yourself instead 0f working for a bank or a credit card company. Learn to pay yourself first before you pay someone else.
This enables you to achieve two things: you make yourself richer, and you stop getting poorer.
It’s no surprise that debt is the leading cause of financial instability and insecurity for people all over the world. It can have a crippling effect on people and their lives if not managed and monitored properly.
There are lots of ways that taking out loans can go very wrong, leading to loss of property, assets, businesses and even in extreme cases loss of life. Going into debt is a big risk and should not be taken lightly.
Being debt-free should be the goal!
Everyone should have an emergency sum of money that can support their living expenses for at least 3 months.
This comes in handy when you need to cover the unforeseen circumstances that life throws at you, such as house or car repairs, medical expenses and other emergencies.
Planning for an emergency fund is vital to prevent borrowing money and going into debt.
Make sure that you have an emergency cushion to fall back on in case your cash flow suddenly comes to a halt!
The best method is to open a separate bank account and start saving for your emergency fund.
Your education should never end and you should aim to be learning new things every day! So why not educate yourself more on how to acquire and keep your money?
There is a broad amount of resources our there to help you update your knowledge about the finance industry and how it works. Attend a seminar (we put on many for just this purpose!), or use the resources available online.
Educating yourself will allow you to take full responsibility for your financial future by understanding and becoming aware of how the financial system works.
It’s important to pace yourself and not go all at once as it can be quite confusing. You can start with learning how to budget then work your way up on how to invest.
You can’t aim for a goal you haven’t set! Whether you want to start your own company, become an investor or are saving up for a house, set weekly and monthly targets for yourself. Align them with your budget and stick to them by being extremely disciplined with yourself.
Keep splurging to a minimum—stay focused on the bigger picture! Your future is worth it.