Financial freedom and independence do not just happen, you would have to work for it. Several actions must be taken willingly to attain what you are craving for. It is never too late to work out a path that leads to absolute freedom and independence.
This article is about the various procedures leading to that financial freedom and absolute independence. It shall cover developing the habit of thriftiness, avoiding or minimizing debts, and investing with your savings. Lets now look at the various procedures:
This is to say that one has to develop the habit of savings. Savings is a term that means setting money aside for future use. This can be done by keeping your money in a piggy box, bank, saving with a credit union, joining "Susu" schemes, and so on. This is the starting point for persons who do not have a very good financial background to their financial freedom and independence. To be able to save, one has to properly appropriate earnings.
2. Avoiding or minimizing debt
Debts are incurred at every point of our daily lives. However, at a certain point in time, debts can be good. This is when debts incurred are used for productive purposes, for example, establishing a lucrative business. Also, some debts do not create a way for returns. These debts are termed as bad debts. Both these debts are not must not be encouraged since they tend to become liabilities. They are liabilities since they take cash out of your pocket such as buying fuel, paying for repairs (cars) and paying bills (house), and so on. It is also very unreasonable to start paying others before enjoying what you have earned. A better way to avoid incurring debts is to properly appropriate your earnings, as to what to spend and what to save ( at least 10% of your earnings ). This will help you to do away with or reduce the rate at which debt is incurred. The savings habit mentioned above shall take you to your financial freedom and absolute independence when followed consistently.
3. Investing with your savings.
Investment is far better than savings since the rate for both vary. Unfortunately, you need to have some funds before you can invest as the saying goes, " BIT BY BIT, THE BIRD BUILDS IT'S NEST ". Unfortunately, that is where we, those that are classified as not having good financial grounds, started. There are several ways in which you can invest your funds. Investing helps you build your wealth, thus giving you financial freedom and absolute independence. It is a way of growing your finances. The above three procedures will get you onto your path to financial freedom. Just follow them. Start by being thrifty and follow it consistently. This is affordable for everyone since it is proportionate to your income. There can be no excuse. What are you waiting for? Start right away. Avoid withdrawing those funds until a certain given period. Do not wait long because there will never be a favorable time. Work on your debt by properly appropriating your earnings. Then invest your funds so you can grow your finances. These three procedures shall indeed put you on the right path to financial freedom and absolute wealth independence.
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