It may sound like a pleasant dream.
Well, it is, but one that you can actually achieve. But first, what is financial freedom?
Some people define it as being financially secure. Having enough savings, cash on hand, and investments to afford whichever lifestyle you want without depending on a salaried income. You don’t worry about the bills, where to get the next check, how to pay off your pile of debt, nada.
The truth is, it is all those things combined and much more. Financial freedom allows you to have something that’s more valuable than money: time. It gives you time to take up a hobby or start and build your dream business. In short, it allows you to become a creator of your own reality.
Achieving financial freedom is a combination of having the right mindset and taking the right actions. In this article, we’ll share ways to create a positive mindset for financial freedom.
Adopt a growth mindset
A growth mindset allows you to value experience more than money. It is the opposite of a fixed mindset which sees people concentrate on their account balance, their job titles, and what’s missing in their lives to achieve financial security. A fixed mindset draws fulfillment from having money. To such a mind, there will likely never be enough.
With a growth mindset, you see more than just the money. You don’t have to wait until retirement to enjoy a vacation or family time. It helps you realize you are much more than your net worth. Such a positive mindset allows you to pursue your financial independence by helping you align your finances accordingly.
Think of money as a necessity
Do not be deceived; money is a good thing. Think of it like food and water. It is a necessity as it allows you to buy the things you don’t have and live the kind of life you want. However, when you don’t have enough of it, you may feel ashamed about making money. And therein comes a mental obstacle; you think making money is evil.
To achieve financial freedom, you need to start looking at money as the necessary tool you need to help you build your dreams. Viewing money negatively [subconsciously] compromises your plans of getting and keeping it. Money is the fuel you need to ignite your dreams. Seeing it as such will help you take the necessary actions to achieve financial freedom.
Jot down your goals
You need to achieve financial freedom. The question is, why?
Could be you are trying to escape the daily hassles of a 9-5 job. Maybe you want to get rid of debt and build your savings completely. Whichever the reasons, it is good to attach some emotional value to it. Writing it down is one way of creating the right mindset to achieve it. I will pay $34,000 worth of student loans, I will sell products worth $150k online, that sort of thing.
That way, you will be able to track your progress and enjoy the excitement along the way. Remember, it is all about the experience. The positivity you generate from seeing yourself get closer to your dream is exactly the type of mindset you should be looking to cultivate.
Adopt a ‘pay yourself first’ mentality
Pay yourself first simply means putting a certain amount of money into your savings account before paying anything or fulfilling any of your obligations. This means you now have to plan for the remaining funds to pay your bills. If that is not enough, you are made to look for a side income to make up for the deficit. This had led many people on a path to financial freedom. It is literally investing in yourself.
By adopting this approach, you will always have some money in your savings account no matter how much you are earning. The opposite means you only save what is left over after paying off your bills, which in most cases, is never enough to help you achieve financial freedom.
Pay off your debts
The feeling of paying off debt is universal; relief. You could be having $25,000 in the bank, but with an unpaid debt of $20,000. With this, you can’t say you have achieved financial freedom. Change your approach to debt. Sure, paying off a debt doesn’t sound as glamorous as putting it in your account, but it actually brings you closer to financial independence.
You can start with the smaller loans going up or vice versa. Choose whatever works for you but most importantly, stay as debt-free as possible.
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