Reaching financial freedom can sound tough. We have pictures of grand palaces, constant holidays and piles of gold in mind when we first think of wealth and money.
Financial freedom simply means that you have enough money to give you a choice on what you want to do in life. If you look around the internet this is simplified as having an emergency buffer of money set aside. The amount ranges from 3-12 months, really comes down to what you are comfortable with.
If you are looking at how much you need for that, financial freedom is attainable quite easily you just need to create some positive habits to make it happen.
- Set up a savings plan! 80% of modern millionnaires started of on minimal wages. Even small savings and investments, if done targeted and systematically, can add up to hundreds of thousands if not millions through the power of compounding.
- Create forms of passive income! Examples are: rent on property, dividends and shares, JV partnerships, businesses. There are many more options out there. Passive income frees up time with limited effort and gives you an income while you sleep.
- Be diverse. One large salary may sound great, but what happens when that ends? You have nothing else coming in. Think outside of your salary. In fact make it a goal to create enough passive income to replace your salary.
- Learn to hold off gratification. Spending big on items you simply want NOW, can weir you off your path of wealth. Do you really need to have 20 pairs of shoes or the latest gadgets? Whatever is trendy right now, may not be for all that long.
- Never be frightened of failure. The fear of failure killed more dreams than actually taking action toward a dream and failing. Failure is simply an opportunity to fine tune and try again.
- Be optimistic in action, but realistic on what you can achieve. I find that most people over estimate what they can achieve in 12 months, but under estimate what they can achieve in 5 years. Growth and wealth do not appear overnight, they take time to build.
- Create a sense of urgency. Whilst patience can pay off in some instances, taking no action will definitely not get you anywhere. So don’t wait things to happen to you, take charge! Create opportunities, start now!
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