Throughout history freedom and independence has more often than not come about through struggle. And although this fight for “financial freedom” isn’t challenging of flesh and blood, it is, none-the-less, an extremely real struggle that demands strategies, discipline, and sacrifice.
So just what’s Financial Freedom, and can it be worth fighting for?
To start, asking if financial freedom is worth fighting for is like asking if reassurance is an ideal state. Obviously it is! So just what’s it? Can it be the financial place what your location is free of all financial responsibilities… ? Or the amount of money position where you’ve all you’ll ever need? No it’s not that at all. Actually “responsibility” is the core with this freedom.
So, for our purposes, financial freedom is an economic mindset and monetary position where money worries are at least, and ease of buying what you need and need is easily and responsibly accomplished. Especially this means having income enough to sustain the required lifestyle. This occurs once the income from your entire assets exceeds your expenses.
It also means that for some people, regardless of the amount of money they’ve, they will never attain financial freedom because they don’t have the desire or the discipline to acquire it comment sortir de la rat race. A person earning $100,000 annually and spending $110,000 is in a much worse financial situation than the usual person earning $75,000 and spending $70,000. One core principle of financial freedom is to spend a maximum of you’ve coming in… and preferable less. Complacency, and surrender to the “wants” a lot more than to the “needs” are hallmarks of the financially oppressed.
So how do you win the battle for financial freedom?
In many battles, be it chess, video gaming, life, or actual war; victory takes planning and implementation. In chess you could stop trying a knight to trap a queen… or in war, exercise an ideal retreat in order to win the war. So it’s also in this battle for financial freedom. For the majority of us to be successful in this endeavor, it can become necessary to sacrifice a number of our immediate wants and desires in order to reach the stated financial goal.
There are three major components to this battle:
The first is strategy… or creating a plan. Debt free (how to become), post debt free plan… You have to responsibly manage that which you already have. Remember the big three: planning, dedication and discipline!
List all income and expenditures. Honestly determine what’s needed for the absolute essentials… commit that amount of your income to that particular use, and with what’s left create an agenda of attack for eliminating all credit debt.
Start by gathering and listing all credit debt… credit cards… department store accounts… any reoccurring monthly debt. Examine the accounts and list them according to interest rates. Choose among the top interest rate accounts as usually the one to attack first. Make minimum payments on all of the debts except usually the one you’ve chosen, then put all available funds toward eliminating that debt.
When the initial debt is eliminated, choose the next debt to eradicate and put all available funds until it too is eliminated. Continue this method and soon you eliminate your entire debts. It could seem slow in the beginning, but you will see the snowball effect that this will create… the last bills is likely to be eliminated pretty quickly
A Very Real Caution
As you begin to eradicate your debt, do not fall back to the trap that got you in this fix. That’s, don’t believe now that you do not have any debt you can venture out and get that “whatever” you’ve been wanting. Now you’ve only succeeded in winning the initial battle for financial independence. The war is now where over… STICK TO THE PLAN!
So, when your entire credit debt is gone, the amount of money you had been using to pay for them is now available for sensible investing… which is area of the next step.
Hopefully, in accomplishing the elimination of your credit debt, and not succumbing to the temptation to spend, you’ve made the psychological changes necessary to initiate the next phase… This change in attitude will enable you to truly achieve the battle for financial freedom. Begin to construct wealth by doing two things… first by continuing to tap into your new found discipline, spend less that you’ve to arrive and make some low risk, long haul investments.