We all desire to make enough money to live comfortably in the present and to secure the future. Such dreams could easily be cut short with the arrival of unexpected expenses like medical bills, job loss, or loss/damage of other valuables of significant importance. If you want to be financially free, here are few vital points to note in fulfilling the dream:
Clear all Debts
There are many things you can do to achieve financial security, but having debts will never be one of them. Even if it’s just one debt, it is enough to frustrate your journey to financial freedom. Your goal will seem unattainable if you constantly have to pay off debt. Of course, it’s a different thing if the debt goes to service a business that generates better returns than you have to pay on the debt. If you have to borrow at all, borrow for profitable investments, not for consumption.
Live within Your Means
This phrase has been bastardized so much; it has been used to excuse poverty and non-performance, but it is sound advice on an individual level. Adopt a lifestyle that makes you seem lesser than you really are. The caveat to this is if appearing bigger than you are (in the name of branding) will actually connect you with opportunities that will benefit your life.
Save for Emergencies
At one point in time or another, for one reason or another, you will spend money for emergency purposes. You need to save for the occasion. Whenever you generate any income, set aside a little for emergency savings. Even if it’s 5%, it would go a long way. Start small but aim for an amount that can cover a year of your living expenses.