How to Begin your Financial Journey Towards Financial freedom

Having no money can cause some pains and regret in life. The beginning of a financial freedom journey is something everyone should embark on.  

At times when we don’t have money, we keep thinking all problems that we have revolve around money.

One major advantage of being financially free is that when making life decisions, it won’t be based solely on money. Financial freedom helps you not to worry about money again.

There will be an opportunity to live without money problems pressure. What a relief that will be?

In this article, we will be discussing about how to begin your financial journey towards financial freedom?

What is financial freedom: Financial freedom has a lot of meaning to different people. Some define it has having enough money to spend while you are not actively working.

It is also a residual income which exceed your expenses. Some also prefer to define financial freedom as being debt free.

Questions you need to ask before you start your financial freedom journey?

  • Do you want to feel secured financially?
  • Where do you want to start from? This might be where your finances are, where you are going and where you will like to reach in your journey.
  • How will you start building businesses that can give you extra income that will help you achieve your financial freedom goals?
  • Are you ready to start and grow your financial freedom journey? It is really important to start and grow your financial journey. This is going to be a long journey that will need extra skills and also expand your mindset. You will need to learn different things you ordinarily won’t think about in order to achieve your goals quickly.

Keys to financial freedom 

 Financial freedom is a process that requires putting together some financial puzzle. No matter how strong we are in our financial plan, all our strategies must connect together to produce good results.

Keys to financial freedom starts with the right strategies you are adopting to reach your desired financial goals.

Understanding and accepting what our greatest investment should be is highly important. Investing in skillset, networks and mindset is the greatest investment anyone can possibly make. Related: How to invest in yourself financially as a low income earner

Learn how to be the controller of your financial life and focus on building it with ease.

Too many people focus on building their financial life on external forces they hardly understand.

What is the essence of making money and not keeping it? If we cannot keep the money, it’s all a futile agenda.

Learning how to pay less in taxes will also move us towards our financial freedom. The wealthy people focus on reducing their taxes permanently.

Learn to keep your money away from inflation and credit card debts. Also, protect your money from market volatility and uncontrollable events that can rob you off your money.

Things that can stop you from achieving financial independence

  •  Get rich quick mindset: You heard about some investments schemes and you put all your savings into it without thinking twice. People are generally lazy and impatient in learning how to make their money work for them.
  • Always held by fear: Fear of investing and losing money can keep you at a far distance from being financially free. Limiting belief about making money is another problem toward financial independence.
  • Lack of valuable skills to achieve financial freedom: The thought of your background and age also contributes to your willingness to pick up a profitable skill.
  • No concrete plan: Start writing down what your financial freedom looks like. This is a destination you can get to if you have a concrete plan set in place. Do not fall victim of someone else defining it for you. Brace up, be confident and define it for yourself on your own terms.
  • Living too comfortably: You are not looking at other sources of income. You are in your comfort zone and feel everything else is not important. You need to be a little bit uneasy with your current state, in order to pursue financial freedom.
  • Not growing and developing yourself: Financial independence is a big push towards developing yourself. Are you stucked with a job that you hate for more than 6 years? You might be listening to YouTube videos but not experimenting anything to give you a financial boost. You need to learn, experiment and make mistakes. The combination of all these act will help in your financial journey.
  • Lack of self-awareness: You need to understand who you are and the version of yourself you love the most. The version of what kind of life you want to live. Self-awareness gives you permission to succeed.

Financial freedom steps for beginners 

  • Create an emergency fund: Save some money aside that can only be used in extreme circumstances. These money should be used basically when your major needs are being affected. At times you can experience a bad day, week or month financially. This is the time you are allowed to tamper with your emergency funds. You are too make sure you replace the amount you picked from it as soon as possible.
  • Pay off your debt: Some adults are guilty of not paying off their debt. Debt has a way of restricting your monthly income.
  • There is always a reminder about your pill up debt somewhere in your heart and it restricts how much you can save.
  • Create a list of all the things you need monthly: Get a pen and paper and list out what you need on a monthly basis. Multiply this amount by 6 and start saving towards a six month expenses bills.
  • Create a retirement fund: Conduct a well-researched investment opportunity that can help you increase your funds over a certain period of time. Do not invest blindly to avoid future regrets.

Stages of financial freedom

  1.  Dependency stage: Income is less than expenses. Relying on friends or family for income support. Anyone in this stage should strive to get out early by learning how to spend responsibly.
  2. Equilibrium stage: You are in this stage if you are living from paycheck to paycheck. Income equals expenses. Any time you receive your paycheck, you pay your expenses and totally forget to pay yourself. No money left over for saving or investing at all.Majority of Americans are in this stage. Some studies have shown that most American workers live from paycheck to paycheck. Any unexpected circumstances can throw you off your budget and also leave you stranded if care is not taken.
  3. Stability stage: Income exceeds your expenses in this stage. You have some money left over in the bank to pay off your debts, purchase some assets and increase your net worth. You need to stay disciplined on this stage for you to graduate to the next stage.
  4. Financial security stage: This is the stage you can breathe a sigh of relief. You can even quit working and start focusing on your investments.You also have more than enough to put a roof over your head, pay bills and food on the table with ease. Figure out the annual income you need to live with and multiply this amount by 25.
  5. Independence stage: At this stage, you have more than enough to retire on. You can schedule yearly vacation, set aside some money for shopping. This stage is a stage all of us should strive to achieve in our financial journey.
  6. Abundance stage: At this stage, you have more than enough to cater for your total expenses and some left overs for fun and anything you wish to use money for.Your passive income and dividends are more than what you need to live comfortably in life. This is a stage where you have created a generational wealth for your family. You can be extremely generous and also donate to different courses of your choice.

In conclusion, beginning your financial journey towards financial freedom is all about having control of your time and utilizing that time in the most effective way for the rest of your life.

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8 thoughts on “How to Begin your Financial Journey Towards Financial freedom”

  1. This is an excellent article- I especially love how you listed “get rich quick” at the top of your avoidance list. So many people are impatient and that’s when disappointment (or worse) hits, right?

  2. The “emergency fund” point is very valid. It’s very reckless and dangerous to keep living without putting some money away, again and again, to accrue over time – you just never know what the future brings.

  3. Excellent read! I totally agree with your list of things that can stop you from achieving financial independence. I think not wanting to step out of your comfort zone and a lack of a plan are the main reasons many people never start their financial freedom journey.

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