Thu. Sep 29th, 2022

5 Facts on How to Attain Financial Freedom,Achieving financial freedom is the desire of most individuals. Financial freedom means having sufficient savings, investments, and cash to take care of your lifestyle and others.,The road map to financial freedom isn’t a get-rich-quick strategy or free someone from money-handling responsibility. Unfortunately, achieving financial objectives become difficult because of ballooning debt, financial emergencies, and extravagant spending.,Below are tips for personal financial freedom.,Financial freedom starts with establishing your net worth by listing down all your debts, cash on hands, savings, and investment.,NET WORTH = (Liquid + non-liquid + other non-liquid assets) – (immediate liabilities + long-term debt).,Liquid assets are easily convertible into cash,Non-liquid assets are not easily convertible into cash, for example, house,Other non-liquid assets for a longer period (insurance products),Immediate Liabilities are debts payable within one to two years,Long-term debt is payable beyond one to two years,The overall net worth should be positive.,Making a budget and stick to it is key in guaranteeing bills payments while you check the living costs to ease the temptation of spending lavishly.,Achieving budgetary change is by establishing areas of expenditure. A proper savings plan comes by identifying where money is leaking. Track expenditure ranging from major bills to coffee bills.,Debts are the biggest hindrance to achieving financial goals. Some debts accrue acute interest hence achieve debt freedom becomes a nightmare if installment payment is low.,Getting out debts is one step at a time. Pay off all debts except mortgages (mortgages cut down taxes). Start by paying off small debts first to build momentum for clearing enormous debts. Once a debt is cleared channel its payment to another debt rather than absorbing it into the budget.,The aim of an emergency fund is to bail you out in times of financial distress. This fund cushions you against unexpected events, e.g. job loss or illness. “Everyone needs an emergency pot (of money) for three to six months of expenses,” McGrath says.,Multiple streams of income provide an individual with various sources of cash flow. This is a fallback plan in the event of job loss or financial constraints. Stable sources of income guarantee earlier retirement plans, paying off debts, and future investment opportunities.,Conclusion,Examine yourself based on the outlined tips and identify areas of amendments in your finances. Saving money, controlling expenditure, and minimize your debt leads to financial freedom. This ensures better provision for oneself and family. Who doesn’t want to be debt-free?,Hey, I am a professional writer with a background in sales and marketing.,I write excellent grammatical and error-free articles.,I am self-driven, disciplined, and hardworking communicating promptly to clients; always meeting deadlines.,I am customer-centric striving to ensure customers excel in their business and meet their goals. My priority is to offer top-notch services to clients.,

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