Financial Freedom is more than making money? Know how!

Most of us are mistaken into thinking that if we are earning a six-figure salary or we have sufficient money to travel the world, we have achieved financial freedom. But, being financially free is more than making money and paying your monthly bills.

What is financial freedom?

A person has financial freedom when he has enough money after paying his living expenses to invest in creating assets that will induce a cash flow that can cover his living expenses for his entire life. He doesn't have to be employed or dependent on anybody.

How can you achieve Financial Freedom?

1. Have confidence in your skillset:  Having confidence in your skills can hugely help to grow your career and even monetize on it. The best way you can build confidence in your skillset is by polishing and integrating them into your day-to-day activities.

2. Make your money work for you:  The literal meaning of this can be "Make Money from The Money you are already earning". Financial freedom is all about making work an option. If your active source of income is a job or business, then you should start investing in assets that can bring revenue and bear your expenses. Your passive income should be able to sustain the future inflations as well. Consider investing in Mutual Funds, SIP, or even the Stock market. 

3. "Define your expenses in numbers, not in percentage."  While planning our expenditures, we generally make the mistake of splitting the income in percentages instead of the actual numbers. This later becomes one of the bleeding points where we end up spending more and saving less or nothing at all. When you start defining your expenses in numbers, and not in percentages, the plan becomes realistic and doable.

4. Set financial goals for yourself:  It's crucial to set financial goals to manage your earnings. Making short-term, and long-term goals will hugely help to better plan your finance. Begin with a small plan such as how much you have to spend for the week, then start making a plan for the month, and proceed to yearly goals. By doing this, you assert command in your spending habits. Moreover, it will help in determining how much you will be able to save at the end of the month or year.

At Younity, we organize weekly workshops where our life coaches provide personal and professional guidance to improvise your personal and professional life.