Financial independence is precursor to any other plan
Honestly speaking, financial standing has remained a key factor in independence struggles of nations. History is on record that in order to fuel and drive the freedom movements, people used to pool money when other financial resources used to dry-up to pursue their goal of freedom. Had finances being not important, why the money used to be collected to run the Independence campaign? This means financial freedom is precursor to achieving any other plan or kind of freedom.
What does financial freedom actually mean? Do you need to be rich? You should be able to make decisions without being overly stressed about the financial implication of the decisions. This means you should have a complete control on your finances. Most importantly, financial independence doesn’t mean to get rich quickly. It also doesn’t absolve you from the responsibility of handling your money well.
Precisely, the mantra is simple. You have to live within your means. Ensure that you earn regularly to meet your needs. However, you have to be careful that you don’t stretch your need beyond your income limits. Otherwise you will end in financial disaster.
First step towards financial freedom is to learn how to manage your money. What is needed here is the kind of proper budgeting of expenses with your eyes wide open. Once you evaluate the costs and come up with a plan to cover them, you can in real sense enjoy the financial freedom. Otherwise, you will find yourself in a financial disaster.
Remember, a proper domestic budget will help you to keep consistent track on your expenses and can alert you on any kind of overspending or even under-spend. This way, you can always workout adjustments in the budget. Precisely, budgeting is important to get your finances on the right track. If you locate any mess in your financial position like debt, clean it up immediately. Then start building wealth.
The most important pillar in financial freedom is your income. Here, while pursuing financial freedom, you career plays an important role for you. Even if your initial income is not making your dream start towards financial independence, capitalize on opportunities for your income to increase. Remember, it’s your career which drives your goal financial freedom.
Having money in abundance doesn’t mean to meet needs. But it is this financial freedom which sews your healthy relationships at all levels. In absence of financial freedom you compromise your other levels of freedom and you unnecessary make yourself accountable to someone.
It’s also a fact that achieving financial freedom is not an easy job to accomplish. It cannot happen overnight. It would take time, as you have bank upon your savings to achieve it. You cannot have this freedom from you salary or monthly income. You need to pool regularly some amount of your income into saving. A basket full of savings can be invested to earn profits.
So, achieving financial freedom is simply in your hands. You have to manage yourself by having sufficient cash flows, of course legitimate cash flows, that support your lifestyle and at the same time allows to take care of your future. You have to make yourself capable to readjust yourself in accordance with any unforeseen disturbance in financial situation.
(The views are of the author & not the institution he works for)