Imagine living your life with the power to say no and stay free of obligation. Or, assume that you are to achieve financial freedom in a time span of just 2 years.
The people who achieve financial freedom live their lives without having to rely on a paycheck for their livelihood, while still ensuring that they can afford all basic needs and some luxuries such as cooking for friends and family. These individuals earn income from multiple sources such as side hustles, subscriptions, investments, rental properties, crafts etc., but do not let that stop them from living the lifestyle they want.
Joy of financial freedom
The joy of financial freedom is not only the ability to do whatever you want but also knowing that you have your financial life well-organized.
If you are financially free, you are able to spend more time with your family and friends, travel the world and experience new things without taking out a loan, and even buy that jewelry or car you’ve always desired but couldn’t afford. Finally, it gives you the power to say no to people who need something from you and set boundaries for yourself and others.
Additionally, it gives you the ability to make decisions without the stress of having to calculate how it will affect your financial situation. Financial freedom also makes you feel powerful and confident.
Practical benefits of financial freedom
If you’re financially independent, your life will no longer be dominated by worries. You can travel the world and live anywhere, work in any industry you choose, and do anything that makes you happy. Likewise, you don’t need to ask for anyone’s permission because the only person whose approval matters is your own.
You can choose to stay home and pursue a creative endeavor if that feels like your passion and career path, rather than taking a job because it pays well and feels safe. Having said that, not all paths will lead to financial independence so being able to say no may be an important skill as well.
Also, you can buy that new iPhone, go on that special vacation or plan for your retirement years. Eventually, you will be financially secure, but the journey is important.
Ways to achieve financial freedom
Financial freedom can be achieved many different ways depending on your unique situation. It’s important to find an approach that works for you. Some of the methods include:
This method involves creating products out of your passions while working less hours on more than one job. The advantage of this method is that you can earn money without quitting your main job. This also allows you to continue with your current lifestyle while creating an income stream that will be enough for you to live independently.
You can become a personal trainer, tutor or freelance writer. Or you can even create your own products such as e-books, online courses, apps, websites or artwork to sell online. It’s important to spend time on this venture so it can be profitable in the long term.
It is possible for property owners who have the money available to invest in rental property in order to achieve financial security in the long run. Generally, the goal of a rental property is to increase returns as well as cash flow over time. It is important to understand that making a profit does not guarantee long-term success. In fact, it is more likely that your investment will lose money in the long-run.
The advantage of this method is that you can make money without having to figure out how many hours you’ll need to work, how much work it will take to build the product or maintain the website. Moreover, it allows you to live in your own home and earn money at the same time. To be successful, the rental property should be in an area with high demand, which may vary depending on where you live. There are many other factors to consider but it’s ultimately up to you to decide whether this option works for your lifestyle and financial situation.
Side hustles and investments
Many people combine side hustles with other forms of income such as investments. There are various ways to have multiple income streams in your portfolio that can give you extra cash flow. Some examples include investing in rental properties, passive investments, stocks, bonds and other types of business ventures.
Most people who are financially independent do side hustles in order to live a much higher quality life without having to work a lot. The amount of time they are able to spend with family and friends increases significantly because they are not spending all their time working long hours which tends to be stressful.
Reaching Financial Freedom in 2 years
The good thing about achieving financial freedom is that it can be achieved by anyone who wants it badly enough and works towards it consistently.
If you’re looking to achieve financial freedom as soon as possible, then you should start with increasing your income. The fastest way to multiply your wealth is through investments and rental properties.
You can develop the skills and time to invest and manage rental properties by watching and applying the advice offered by financial bloggers such as:
Once you have a steady income stream from your side hustles and investments, you should start giving 10 to 15 percent of your income towards expenses such as:
Paying interest on your loans (refinancing high interest debts is the easiest way to reduce it), emergency fund debt payments (if any), credit card payments if any, maintenance costs for properties etc.
You should put the remainder into your retirement account and start contributing at least 10 percent.
The rest of your time should be spent on side hustles and investments.
Achieving financial freedom is possible; we all strive for it. Once we achieve it, we can call ourselves financially free and live the life we’ve always dreamed of.
Imagine being free to live your life in a particular manner, to spend money on things that bring happiness to you and to pursue a career path you are passionate about without asking for permission. No more checking your bank account every day, no more feeling stress about meeting your monthly expenses.
We all want financial freedom but we don’t always know how to achieve it. So here are some quick additional tips to help you live the life you want:
- Get started now. You can’t think of financial freedom in the future if you don’t start right now.
- Keep up with what your money is invested in and track your investment returns. This will give you a clear understanding of what’s happening with your money and what’s required to improve it over time.
- Build up an emergency fund by saving 10-20 percent of your paycheck each month.
- Increase your income starting small. Most people begin with so little money that they can give away 10 or 20 percent of it incrementally as they work towards the amount they want. If you don’t understand how this works, check out my article on how to make extra income through side hustles!
- Save at least 10-15 percent of your disposable income for retirement. The more money you save now, the more you will have in retirement.
Hope you learned something from this blog. You can check Investment strategies to learn before trading