Financial freedom sounds like a wonderful dream that many people find hard or impossible to reach. However, the truth is, you do not need a lot of skill or education to start your journey towards financial freedom. Successful professionals are no more likely than ordinary folks to become financially free, because the rules governing financial freedom are quite different from what we are used to learning at school.
Why would I want Financial Freedom?
The goal of financial freedom is to be able to lead a lifestyle that you choose without having to worry about money. This seems like a big goal for many. The important thing to remember is that financial freedom is all about your time and your life, and not just about money. So if you can earn double what you are earning now by putting in twice the number of hours, that doesn’t seem like a great start to a journey you would look forward to. You should be able to make money without having to work as hard.
1 goes in 2 come out
Financial freedom is never achieved by working harder, only smarter. Of course this also requires hard work but in a different way. What you need to realize is that to be financially free, you will need to invest money to make more money. So, the source of your income is diversified and is moved away from the linear relationship of time and money. What this means is that you do not want to be working twice as hard to make twice as much. You could work the same amount, invest in good opportunities and let these investments make money for you.
Knowledge is power
There is no single investment that can be called best. There are thousands of opportunities available and different options suit different people, based on their appetite, personalities, financial position, etc. However, no matter what type of investment you choose, you need to know in detail about the market. Knowledge is indeed power in almost all types of investments. So if you are looking at real estate, make sure you understand how the market works and what kind of houses attract higher rental incomes. You should also know which places are best suited for this investment. If you are investing in the stock market, you need to carefully understand the different kinds of analysis and also know how to read the balance sheets of companies you want to invest in.
It takes time and effort to work towards financial freedom, but it is certainly worth the efforts. You will no longer need to rely on your next paycheck to meet your expenses and if you work smart, you can make enough so you can buy everything that money buys. Financial freedom is all about creating alternative sources of income so that you do not have to work for the money – let the money work for you and make more money. That, in a nutshell, is how financial freedom works.