How can you achieve Financial Freedom?

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How can you achieve Financial Freedom?


Before answering this question we need to understand, what is Financial Freedom? 

Financial Freedom means having enough cash and savings to live life on your own terms💸. In other words, you can attain financial freedom when you no longer work for fulfilling your daily expenses because you have already planned for it and you have surplus money to cover your expenses till the end of your life. It does not mean that you will stop doing any work. Because you have already taken care of your expenses so now you will put your energy into work which is more fulfilling to you like you may like to do blogging, painting, traveling, etc.

Plan

Financial Goal Planning is the stepping stone to achieve Financial Freedom. This will tell you how much amount you will need to become financially free.
How to calculate the amount for financial freedom?


Reduce Expenses and Save Money


Each step taken to reduce expenses and increase your saving will take you towards financial freedom. Please have a look at Best Money-Saving Tips.

Increase Cashflow

You should not be dependent only on your primary source of income like salary, business income, etc. In today's world, you should have multiple streams of income. Please read more at Best Ideas For Generating Second Source of Income.

Simplify Life

  • Avoid using multiple credit cards.
  • Avoid having multiple bank saving accounts because you have to keep a minimum balance in them to avoid penalties. On this minimum balance, you earn only minimum saving account interest which is 3.5% in most of the banks. Saving account in two banks should be enough.
  • Shop in bulk instead of small quantities

Reduce and Eliminate Debt

If you have debt then first of all you should plan and reduce your debt. We should reduce debt which is having a high interest rate. Below is the sequence -
  1. Personal Loan
  2. Car loan
  3. Education Loan
  4. Home/Property Loan

Investment

Please have a look at Investment and wealth creation Tips.
If you are thinking of investing in mutual funds or SIP then read Things to understand before investing in Mutual Funds.

Passive Income

Passive income is the key factor that makes you reach with less effort. Please have a look at Best Passive Income Ideas.




Please comment below and let me know your views and ideas on Financial Freedom.

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