What is Financial Freedom?
In today’s economic climate and external variables, to achieve and maintaining good financial health is vital. Put differently, you can’t only save your way to millionaire status in this day-and-age. So the road to financial freedom requires a robust way of thinking and a sound or strategic plan—focus on earning and saving. To reinforce this idea, let consider the following illustration: If the typical American earns $60,000 a year and saves $3,000 a year, the chances of becoming financially stable or wealthy is very slim on its own. In other words, it will take you more than a lifetime to become a millionaire with the saving mindset only, especially considering the rate of inflation per year.
To add, it has been well stated that a small shift in your mindset can make a significant difference in your financial future. For example, money in itself isn’t bad or evil. The more money you have, the more you can enjoy a better quality of life and help others and make a greater impact on the world at large. Fundamentally speaking, financial freedom is not a lack of education or intelligence, it is simply one’s beliefs about money says Siebold.
SEE THE BIG PICTURE/CHOOSE A STRATEGY
For consideration, Siebold says, “Go out and focus on earning and solving problems,” and not hoarding and saving. In other words, save to invest and receive dividends or return on your investment. This means, you ought to divorce the mentality of emotion and married the mindset of logic. To further illustrate, 40 hours per week in a job won’t get you on the road to financial freedom. It’s only a paycheck to prevent homelessness in some cases.
Let your money do the heavy lifting. That is to say, the more money you invest, your investments will work for you. In addition to this, use debt to leverage to increase cash flow and avoid toxic debt such as credit cards and car notes that doesn’t pay you.
Another strategy to consider is to get sound financial mentoring. Drawing on Bill Gate’s philosophy at this point is helpful. “If you’re born poor, it’s not your mistake. But if you die poor, it’s your mistake.” In brief, a conclusion can be drawn that having an aggressive outlook on money coupled with psychology and sound management principles will get you on the road to financial freedom.