Achieving Financial Freedom Following Simple Techniques

Financial freedom is something which is a sure desire of almost every individual living on this world. However, only a few out of millions are able to achieve financial freedom in this tough World. There are plenty of reasons that why majority the people fail to achieve financial freedom but in this piece of writing, we won’t be discussing about them.

In this piece of writing, we will emphasize on the techniques which you can follow to achieve financial freedom. So, here are some techniques which you must practically implement within your daily life to achieve financial freedom.

In order to begin, track your earnings and spending. Start by noting down and analyzing your income. What are the sources of your income? Are the sources your salary, interest you are earning over deposited money in a savings account or income from business?

Once you have analyzed all the sources from where you are generating your income, you can then decide what portion of your income you can spend over your necessities and what portion of your income you can spend on your luxuries.

Once you are done with the analyzing of the resources from where you are generating your income, next thing to do is to calculate the expenses which are occurring on weekly or monthly basis. List down all small and big expenses which are occurring either on weekly or on monthly basis. If you are a student or a single mom budgeting and planning for your kids education, these tips will help you avoid Student Loans.

After listing down all your expenses, add all of them and you would find the exact figure of expenses which you are doing either on weekly or on monthly basis. This way, you would be able to judge your spending patterns as well as your spending powers.

According to latest surveys and researches, it has been proved that credit cards are the major source or factor behind the failures of achievement of financial freedom. These days, people are carrying more than one credit card with themselves which is surely not a wise thing to do. If you are tasked to stay at home doing the household chores, try to look for jobs to work at home and make extra money rather than spending more that what you are earning.

In order to achieve financial freedom, it is advisable that you must carry one credit card with yourself and only emergency purposes to avoid credit card debt. Assuming that on the basis of credit card you are financially strong is not the right thing to do because in reality, the amount you have within your credit card doesn’t belongs to you.

So, above mentioned were some simple techniques which you can practically implement within your daily life to achieve financial freedom within no time at all.

  • chen-ming-hui

    yes.it’s useful for me . thanks friend…if you have more

    useful information, please let me know ..thanks.

  • You are so right that owning more than one credit cards is not that good with our own finances. It gives us more freedom to spend and making us end up in deep debt. But anyway, this all actually depends on the person in handling his own finances, it’s a matter of control. :)

  • Rod

    If you really want to grow your wealth, you should start your own business before you dable into stocks, bonds, or funds. The returns from the stock market, bonds or funds have very thin spreads over inflation, hence operating your own business is better and faster. If you do not have time, then you can settle for the passive streams in stocks, bonds and the like, but the returns are low and it will take a long time to build your wealth.

    You will need capital to start a business. Running a small business will also add to your skill set as the skill set and style required would be different from the skill set needed when you are employed as a salaried person. It will also help you develop a more resilient character.

    Accumulating savings from your salary would be a good way to build your start-up capital. Promotions and pay increases would help you build that start-up capital faster. Hence, it is good to be good at your job and have a better chance of receiving salary increases and promotions.

    I am in my mid-forties and I would want to share my experience on wealth building. I have built from zero net worth when I was 23 years old to over P45 million in net worth (and still growing) today. I started dabbling into small businesses when I was just 28 years old. I was running my businesses on the sides while I was doing my best on my day job. I also strictly followed a budget on my personal and family finances. The goal was to accumulate funds to build income streams through business and investments.

    To give you a taste of what I have tried, learned, and moved on – to something more lucrative or practicable activites or something more attuned to my changing taste or income goals, here is a list of what I have tried – selling eggs to bakeries, trading corn and copra (1990-1993), operating tricyles (1992-1997), operating vans for hire (1995-2003), lending money small scale with daily collections (1990-2003), and then operating a bakery (2002-2005).

    I was doing all those businesses while holding on to a day job. I did my best at my day job, too. I had salary raises and got promotions. I maximized savings from my salary and the earnings from my business I as much as possible re-invested into my non-day job income streams. By the way, although I believe in the advantage of proper leverage, I have never borrowed funds to finance my business endeavors as I found no need to do so and I have an aversion to borrowed funds.

    It was only in 2003 that I was able to save enough funds and accumulated adequate knowledge to enable me set up a hardware store. Then, in 2004 I set up a financing corporation (approved by the SEC). Now I have 2 branches of my hardware store and 3 branches for my money lending business operating via my financing corporation and a lending corporation that I established last year.

    It is hardwork, perseverance, and street marts that will help one succeed. As of today, I have funds in the stock market and mutual funds. I have also started to build houses and apartments for rentals, thereby expanding my streams of income.

    I still hold a day job as vice president in a group of companies, but I am president of 2 corporations that I established. My income stream from my businesses is now more than twice what I receive from my day job. While I am employed I also have my own employees in the business that I operate. I am not resting on my achievements. There is still a long way to go.

    I am sharing this to encourage people to work on building other income streams even while holding a day job. I still continue to spend wisely and find ways to increase my income streams through sensible investments or business ventures. Anything build could easily be wiped-out, hence, I continue to tend to what I have build with much care.

    May the experience and thoughts I share here encourage some to work hard, save as much as possible, and start a business even while holding a day job. A day job is a temporary and short-term solution to a long term need. You should start your own business NOW…

  • 1

    I agree. Another approach to forget-a-debt is to take out cash weekly or monthly and just spend that. Use the reserves to pay on existing obligations.

  • you make some really great points here. Financial management is always important for any project. And owning more than one credit card is not a good idea.