Most people never really gain independence or experience financial freedom. This is saddening, because it is completely possible to achieve both. The sooner you start doing the work, the better. Start early in your adult years if you can, if you didn’t start then, taking aggressive action later in life will still get you there. You probably don’t want to work for 40+ years and still be unable to retire because you don’t have enough money. Avoid these 8 obstacles and become financially free so you don’t have to worry about it.
Most people don’t want to work in their twilight years unless it’s purpose or passion driven. After all, you have other things you’d rather do. With financial independence, you are free to live any way you choose.
Here are steps you can take to avoid these 8 obstacles and become financially free to live the life you desire and deserve:
8 Steps to Become Financially Free
1. Don’t wait to start saving and investing. Time is your friend, but it can feel like your enemy.
◦ When you start early, it’s amazing how little you have to save each month to become wealthy by retirement age.
◦ Conversely, if you wait too long, it’s amazing how much you have to save each month to reach the same level of savings.
◦ Use one of the many online savings calculators and see for yourself. Play around with the contribution amounts and the number of years.
2. A lack of financial goals. Without goals and intentions, you’re just floating adrift like a ship without a sail. Goals provide a context for choosing your behaviors and making important decisions.
◦ If you don’t have financial goals, now is the time to make them.
3. A lack of an emergency fund. An emergency fund necessary to cultivate financial success and can have a large effect on your financial independence. Without an emergency fund, you might be forced to dip into your savings or retirement accounts. This can be disastrous.
4. Having a greater interest in short-term pleasure than long-term security. Would you rather buy something you don’t really need or save the money for the future? Short-term enjoyment without conscious decision making is the enemy of long-term progress.
5. A failure to maximize income. How much you save is impacted by how much you earn. Make a real effort to maximize your career growth. Do what you can to increase your earnings. Too many people just settle into a comfortable job and ride it out as long as they can.
6. Overspending. The more you spend, the less you can save. It’s that simple. You’d be surprised how many wealthy people spend relatively little.
◦ Take a look at your spending over the last few years and think about what you have to show for it. Would you rather have those items, or would you rather have all of that money back?
7. Too much debt. Debt is another roadblock to your financial independence. Debt is just spending with added interest. Debt is a major source of stress, too. Work to pay off your debt. Keep in mind that the less debt you have, the more money you can save.
8. Caring too much about what others think. Why do you want to live in a fancier, and larger, home than you need? Why do you want an expensive car? If you’re honest with yourself, it’s largely to impress others.
◦ Ask yourself what car you would purchase if no one would ever see it or know about it.
Everyone should have the goal of financial independence. With enough money, you don’t have to work for a living. You can spend your time as you please.
Financial independence is a possibility for everyone. Make a plan and get started today. Time is on your side if you start early enough. Get started today if you haven’t already. You have all it takes to avoid these 8 obstacles and become financially free.