In this generation, one of the most important things to achieve is to be financially free. It is an undeniable thing that each one wanted to be financially free. Why? To be able to do freely the things that you want such as travels or leisure, engaging yourself into sports, buy your favorite foods and the chance to help others.
Aiming to be financially free is not an easy thing to do, here are the things that you must do to achieve it. But before that, you have to determine first your needs and wants in life, make a list for you to figure out things. Separate the needs’ things from wants’ things to properly allocate budget. To achieve your biggest dream, you have to start these simple yet helpful ideas.
Allocate Your Money
First, before you will receive your salary you have to list down the things that you need to have or to pay for, such as grocery items, personal care, rent, electricity, and etc. Prioritize the basic needs before turning your head into the wants’ stuffs. And most of all set aside an amount of money as your savings before you spend; let’s say 10%-20% of the total amount of your monthly income. Save money in preparation for you to invest in the near future and set a target when to start a business for you to generate the money needed on time.
List Down All Stuffs That You Buy
Second, list all the stuffs that you buy for you to easily track where your money goes and to easily distinguish what are the items that you are going to eliminate to avoid short of budget. Is the stuff that you just buy is on the list of your needs? If not, next time doesn’t buy for it. Consider the things that are needed in your daily life, buying items that are not on your list leads you to short of budget.
Eradicate of Using Credit Cards
Third, if you want to purchase something whether it is on the list of your needs or wants it is better to pay it on cash rather than using credit card as when your credit card bill handed to you the possibility is you forgot to include it on your budget. Moreover, the allocated money that is supposed for the basic needs will be deducted to pay the credit card bill or you have to use your savings that is supposed for your investment.
Multiple Source of Income
Lastly, to be able to reach your goal which is to be financially free don’t rely on one source of income. One of the best advises, is to invest your money to acquire assets. More and more younger people become financially free by cause of investing wisely. These days you can start a business, investing in the stock market and if you want try to do the network marketing business by choosing the right company to sign-up with. Having a passive income is usually the root of creating business.
You have to try something new for you to see the result. Business owners are risk takers when they started their business they have set the vision to where to go but the paths towards successful business are not a straight line but rather a curve line. In this period you can now used your savings that is intended for your investment.
You have now the idea on how to be financially free, in the first part you have to sacrifice some things for you to achieve something. Be conscious in spending the money because even the least amount you spent, it has a big impact on the budget that you have set. Saving money is the first step for you to achieve financial freedom. On the other hand, being an entrepreneur is one of the highlights in this modern world. The number of corporations is increasing from time to time due to people are thinking wisely to invest their money by putting a business to achieve financial freedom.