Every person desires to have financial freedom. You do not have to be a millionaire or billionaire to be financially free. It doesn’t mean having unlimited amount of money. It simply means that you do not have to necessarily work in order to meet your monthly expenses as well as your general expenses. According to an article published in The Washington Post only 13 people out of every 100 like to go to work. Other 87 people don’t like going for their work but still go because they don’t have any other source of income to meet their living expenses. In India an average person works for 30 to 35 years, whether they love their job or not. Working so long without loving the job is not good for you. Even working for 35 years or more doesn’t guarantee you financial freedom. If you want to pursue your passion, start a new business or do something big, you need to have financial freedom.
DETERMINE YOUR REASONS TO HAVE FINANCIAL FREEDOM:
Hardly, 1 percent people are able to achieve financial freedom and other 99 percent remain in other category where they have to necessarily work in order to meet their monthly expenses. There are many reasons why you should try to achieve financial freedom. The first reason to achieve it is that it will help you to be mentally free. You don’t have to worry every morning to go to office or your business place. You don’t have to worry that how you would feed your family or how you would meet your monthly expenses. If you are financially free you do not need to worry about your basic needs. You would have liberty to spend your time doing things which you really like.You would be working for your pleasure or satisfaction and not for money. The other reason is that being financially free will help you to do something really big in your life.In other words, we can say that it will help in lowering the level of fear or risk. It’s because aiming something big involves higher risk. If we are not financially free, you would fear to undertake high risks. Most of the people are not able to achieve something big in life because they fear taking high risks. They fear that if they fail, they would not be even able to meet their monthly expenses. This keeps them away from starting their business, expanding their business or starting something new which they want to do. Having financial freedom helps you to do whatever you want to do instead of worrying about your living expenses. You should have such system in place that you receive that monthly income irrespective of where you are and what you are doing. You can take big actions or go after pursuing your big dreams. “Don’t become servant of money; rather try to make money your servant.” Make money work for you and to generate recurring income for you.
CALCULATE THE AMOUNT YOU NEED:
Suppose, you have annual expenses of Rs.600000. You would also need money to buy consumer durables and other such stuff to maintain your lifestyle. Let’s take another Rs.200000. You must be going on vacation and incurring other expenses on traveling. Let’s take another Rs100000 towards your vacation and travelling expenses.
You should also have some extra money to meet your contingency needs and medical expenses. Let’s add Rs.300000 towards your contingency needs and medical expenses. Summing up, in this case you would need at least Rs.1200000.00 annually.That comes to Rs.100000.00 monthly. So, you should be having this Rs100000.00 in your bank account every month without requiring to work. It may be in the form of rental income or income from your business or income from the investments that you have made. You should not be actively involved in earning that income. If you are able to do so you would have financial freedom. This is just an example; the amount you need to have financial freedom will vary from person to person. You need to have roughly 25 times of your annual expenses to be financially free. Calculate the amount you need and make a plan to achieve it. Once you become financially free, you work by your choice not under compulsion to meet your monthly requirements. Becoming financial free should be one of the topmost priorities of your life. You should aim at achievingfinancial freedom in life as soon as possible.
SAVING YOUR TIME:
You need to understand the value of time in planning to achieve your financial freedom.Time is invaluable. In fact, it’s more important than money. Most of the people try saving money for retirement. But, they never save time. You have very limited time in your life. You can earn unlimited money but you don’t have unlimited time. Therefore,it’s important to save time as well as money. Don’t waste your free time watching comedy or Netflix. Try to utilize your free time to create additional sources of income for yourself. It will help you achieve financial freedom early in your life and then you can have more free time at your disposal to do whatever you love.
CREATE PASSIVE INCOME SOURCES:
Generating passive income is one of the best ways to achieve financial freedom.Passive income is a source of income that makes money for you, even while you sleep.You need to invest your savings in passive income generating assets. It may be stocks that give you dividend, interest income from bonds and debentures, the property that gives you rent, royalties from books, income from your YouTube channel or income from your blog. Try to create at least five sources of passive income, if you want to achieve financial freedom early in your life. Plan your short term and long term investments in such a way to generate passive income for you.
WORK PART TIME:
Invest your free time to start new profitable business or activity which you may do on part time basis. You can earn money online. Internet is a very good tool. You can work for sites that provide online work or do freelancing work as well. The future lies in going digital. Learn new skills which would help you to work online and earn money. You can start working part time. Expand your part-time income in such a way that it exceeds your normal job or business income.Once you achieve this you can think of creating more income generating businesses.
BE YOUR OWN MASTER:
Try to work for yourself rather than working for others. Try to become a job giver, rather than becoming job seeker. If you are working for others, they will be paying you for amount of time you spend on work. You will always be paid less than the value you are creating as an employee. If you work for yourself, you will always pay yourself more.You will also have more time at your disposal which is very limited in your life. So, try to start your own venture. Try to start it as part time and expand it to full time. In starting a new venture you should always consider your passion as well as your skill sets. .If youwork even 2 hours, then also you would be working for more than 700 hours a year on your own venture. Become your own master and achieve financial freedom.
