Financial freedom can mean different things to everyone. Financial freedom can be ability to stay away from debt, when you can afford anything without stress, early retirement e.t.c
To me financial freedom is the time when my assets produce enough income to cover a comfortable lifestyle.
If freedom from debt is what you're seeking, here are some things that could be holding you back.
1. Not having clear, financial goals
If you're not planning for financial freedom, chances are you won't reach it. The future is full of unknowns, but having an idea of when you'd like to achieve financial freedom should be your first step.
Do you want to retire before you turn 60? Do you want to travel the world with your spouse once you reach early retirement? Both goals will require a significant amount of cash stashed away, so it's important to start saving ASAP to make those dreams come true.
2. Not saving enough
It's important to identify how much you're currently saving, and how much you need to save in order to retire when you want to, or reach another major financial goal. Using a calculator can help you play with various money-saving scenarios and make realistic projections about retirement.
Another way to make saving money easier is to automate it. Setting up an automatic weekly or monthly transfer from your checking account into your savings account will take the extra task off your already full plate. Even if it's as little as $5 a week, it's enough to start building that nest egg. Start saving now
3. Not paying off consumer debt
If you're carrying a credit card balance each month, financing cars, or just paying the minimum on your student loans, compound interest is working against you. Creating an aggressive plan to pay off debt quickly should be a number one priority for anyone who is serious about achieving financial independence. Otherwise, your money is working for your creditors, not you.
Debt have a way of slowing you down in the journey to financial freedom.
When you settle your debt on time, you will have enough room to save and invest.
If you prefer to tackle credit card debt first, there are several debt management methods you can try, including the Debt snow method and Debt Avalanche method. The Debt Snowball Method has you paying off the card with the smallest balance first, working your way up to the card with the largest balance. The Debt Avalanche Method is similar, but here you would pay more than the monthly minimum on the card with the highest interest rate first, working towards paying off the card with the lowest interest rate. Both are highly effective methods, and choosing one really just depends on your preference.
4. Giving into lifestyle slink
Increase in income or salary cannot make you rich automatically, a lot of us increase our expenses immediately we experience slight changes in our source of income, that is when we need to buy a more expensive car, move to a bigger house, go for an expensive vacation somewhere and before you know it, it might be hard to save or invest talk less of achieving financial freedom.
As you move up in your career, the temptation to upgrade your lifestyle to match your income will be ever-present. After all, you work hard, so why not reward yourself with the latest gadgets and toys?
However, if you continue to spend and live modestly, you can put more money away for travel or retirement with every pay raise you earn. Financial freedom will be just around the corner if you resist that temptation to upgrade your home, car, and electronics to match your income bracket
5. Gaining unnecessary attention
A lot of us want to impress all and sundry with our lifestyle . I tell anyone who cares to listen that I don’t live to impress people because I am not using my life to compete with any one.
Fear Of Missing Out, is the modern version of keeping up with the Joneses. Except now you have access to the Joneses' social media platforms, and they go on all kinds of fun adventures. Social media is a great tool for keeping in touch, but it can also make you want to spend all your money on lavish vacations, clothes, spa treatments, and other extravagant things. Resist that urge. And block the Joneses on social media if needed.
To achieve financial freedom you need financial discipline.
If you need my help in any of these areas you can always shoot me an email : email@example.com