Throughout history freedom and independence has more often than not come about through struggle. And although this fight for “financial freedom” isn’t a struggle of flesh and blood, it’s, none-the-less, a really real struggle that demands strategies, discipline, and sacrifice.
So just what is Financial Freedom, and is it worth fighting for?
To start, asking if financial freedom may be worth fighting for is similar to asking if reassurance is an ideal state. Needless to say it’s! So just what is it? Could it be the financial place what your location is free from all financial responsibilities… ? Or the money position where you have all you’ll ever need? No it’s not that at all. In fact “responsibility” may be the core with this freedom.
So, for our purposes, financial freedom is an economic mindset and monetary position where money worries are at least, and ease of purchasing what you need and need is easily and responsibly accomplished. Most importantly it means having income enough to sustain the specified lifestyle. This occurs once the income from all of your assets exceeds your expenses. comment sortir de la rat race
It also means that for a lot of, regardless of how much cash they have, they’ll never attain financial freedom because they do not have the desire or the discipline to acquire it. An individual earning $100,000 each year and spending $110,000 is in a much worse financial situation when compared to a person earning $75,000 and spending $70,000. One core principle of financial freedom is to spend only you have coming in… and preferable less. Complacency, and surrender to the “wants” significantly more than to the “needs” are hallmarks of the financially oppressed.
So how do you win the battle for financial freedom?
In most battles, be it chess, game titles, life, or actual war; victory takes planning and implementation. In chess you might quit a knight to trap a queen… or in war, exercise a proper retreat to be able to win the war. So it is also in this battle for financial freedom. For the majority of us to be successful in this endeavor, it will end up required to sacrifice some of our immediate wants and desires to be able to reach the stated financial goal.
You will find three major components to the battle:
The foremost is strategy… or developing a plan. Debt free (how to become), post debt free plan… You must responsibly manage what you already have. Remember the big three: planning, dedication and discipline!
List all income and expenditures. Honestly determine what is necessary for the absolute essentials… commit that amount of your income to that use, and with what is left create an idea of attack for eliminating all credit debt.
Begin by gathering and listing all credit debt… credit cards… department store accounts… any reoccurring monthly debt. Examine the accounts and list them according to interest rates. Choose one of the top interest rate accounts as the main one to attack first. Make minimum payments on every one of the debts except the main one you have chosen, then put all available funds toward eliminating that debt.
When the initial debt is eliminated, choose the following debt to get rid of and put all available funds until it too is eliminated. Continue this method and soon you eliminate all of your debts. It could seem slow in the beginning, but you will see the snowball effect that this may create… the final bills will undoubtedly be eliminated pretty quickly
A Very Real Caution
As you begin to get rid of your debt, do not fall back to the trap that got you in this fix. That is, don’t genuinely believe that given that there isn’t any debt you can get out and get that “whatever” you’ve been wanting. At this point you have only succeeded in winning the initial battle for financial independence. The war is currently where over… STICK TO THE PLAN!
So, when all of your credit debt is gone, the money you’re using to cover them is now available for sensible investing… which can be part of the next step.
Hopefully, in accomplishing the elimination of your credit debt, and not succumbing to the temptation to spend, you have made the psychological changes required to initiate the following phase… This change in attitude will enable one to truly succeed in the battle for financial freedom. Begin to construct wealth by doing two things… first by continuing to tap into your new found discipline, spend less that you have to arrive and make some low risk, long haul investments.