Sure, money isn’t everything and it won’t make you happy on its own, but what if you had the financial resources you needed to take control of and improve your life? Reaching this kind of financial empowerment is a respectable and admirable goal, isn’t it…Hirav Shah Opines.
Planning for financial freedom is a marathon and not a sprint. Breaking up your financial independence goals into small chunks can help keep you on track while making the process a bit more manageable and, hopefully, a little less stressful. Even if you are starting small, the important thing is to get started, Tells Shah.
On that note, 6 steps are mentioned below, which can help you attain financial freedom.
These are outlined by the Country’s Most Influential Business Coach, Strategist and Adviser, Hirav Shah.
1. Slow & Steady Wins The Race
Decide You Want It -More than You Are Afraid Of It.One of the reasons more people don’t reach financial independence is,they’re afraid – not of being financially independent, but of the changes in their lives they’ll have to make to get there.
And, It doesn’t happen overnight, Says Hirav Shah, India’s Top Most Business Strategist, Business Coach, Adviser, Consultant & Astrologer.
If you are new to the financial planning process, it’s important to remember you don’t need to go from zero to sixty overnight. Pick a reasonable and attainable goal, and get used to achieving small wins on your track to financial independence.
For example, if you are new to saving, you don’t need to immediately put aside half of your paycheck. Start with a small amount – maybe $20 per pay period – and increase it as you get more comfortable with the process. Starting out slow will help you build the confidence needed for long-term success.
Remember, slow and steady wins the race?
2. Establish Goals
Becoming financially independent isn’t a single goal, but a series of subgoals. This is because your financial life has several facets. In order to reach your overall goal of financial independence, you’ll have to establish goals in the various areas of your financial life, including,
- Increasing your income
- Controlling your spending habits
- Paying off your student loan and credit card debt
- Understanding your savings patterns
- Determining your investment objectives
- Defining your long-term financial goals
- Purchasing the best life insurance for your family.
- Implementing a legacy plan for your heirs.
3.Get Started Saving Today
The third step is always the hardest. The earlier you start saving for retirement the sooner you will be able to achieve financial independence. This is the day when working becomes an option and not a necessity. Do not save what is left after spending, but spend what is left after saving.
4. Define What Freedom Would Look Like To You
Have fun and do a little daydreaming about what your life would look like. Where would you live? How would you occupy your time?
This is important for a couple of reasons. First, it’s hard to plan for something if you don’t know what that something is. Someone who wants to spend their time traveling the world might need more money than someone just planning to spend more time with their family. Second, having an exciting vision can help motivate you to take the steps to turn that daydream into a reality.
5. Choose Your Circle Well
Are there one or more people in your social circle who you could reasonably characterize as a spendthrift? If so, one of the sacrifices you may need to make to reach financial independence will be to either reduce your contact with this person (or people), or even eliminate them from your life altogether.
It may sound harsh, but is also totally necessary. The people who we keep company with can have a profound effect on how we view and spend money.
If you are surrounded by people who “live for the moment” – meaning they mostly spend their money having fun rather than saving for the future, you will inevitably get pulled into that behavior.
6. Say A “Final Good Bye” To Debt
It’s hard to make a case for being financially independent when you owe money to banks or other people. You should have a goal of getting out of debt as soon as possible.
You can have different time horizons for getting out of debt with each debt category.
For example, you can commit to eliminating your credit card debt in five years, while eliminating your student loan debt in 10 years, and your mortgage in 15 years.
That’s not an overnight solution to your current debt problems, but it sets you heading in the right direction.
And once you get out of debt in any category, stay out and never come back! There’s no such thing as “good debt” when you’re trying to achieve financial independence.
Seems like a lot? Well, think about how much time you spent planning for your last vacation and consider that financial independence is basically like a vacation for the rest of your life. The best way to tackle it is to break it down and take each step one at a time. The end result is that you can celebrate your own personal Independence Day…just probably without the fireworks.
Financial freedom is not impossible.
Financial freedom is possible and very much available.Financial freedom is available to all those who learn about it and work for it…concludes Hirav Shah.