Financial Freedom means having enough residual income to cover your living expenses. It is not about being rich and having lots of money, but having enough to cover your expenses required during an emergency and also spending your precious time doing what you like by taking a break from work. This can be achieved only when you are prepared for it. Financial freedom allows you to have something that’s more valuable than money: time. It gives you time to live your dreams and chase your hobby. Achieving financial freedom is a combination of having the right mindset and taking the right actions. Financial freedom mindset helps you to live a better life with fulfilling all your dreams.
Unfortunately, too many people fail to achieve it. They are burdened with increasing debt, financial emergencies, profligate spending, and other issues that thwart them from reaching their goals. Then there are unexpected events, such as a hurricane or earthquake—or pandemic—that overturn plans and reveal holes in their safety nets that weren’t visible before.
Some ways to reset your mind towards financial freedom:
1) Adopt a growth mindset
A growth mindset allows you to value experience over money. A growth mindset is the opposite of a fixed mindset. With the fixed mindset people concentrate on their account balance, their job titles, and what’s missing in their lives to achieve financial security. With such a mindset, there will likely never be enough.
With a growth mindset, you see more than just the money. You don’t have to wait until retirement to enjoy a vacation or family time. It helps you see that you are worth much more than your net worth. Such a positive mindset allows you to pursue your financial independence by helping you manage your finances accordingly.
2) Think of money as a necessity
Do not be deceived; money is a good thing. Think of it like food and water. It is a necessity as it allows you to buy the things you don’t have and live the kind of life you want. However, when you don’t have enough of it, you may feel embarrassed about making money. And then comes a mental barrier; you think making money is evil.
To achieve financial freedom, you need to start looking at money as the necessary tool you need to help you build your dreams. Misuse of money compromises your plans of getting and keeping it. Seeing it as such will help you take the necessary steps to achieve financial freedom.
3) Rewrite Your Major Goals For Financial Freedom
Set the financial goals that you will achieve after becoming financially independent. Rewrite and review your goals on paper every day and think of how you could accomplish them. By writing and rewriting your goals, helps you to achieve them.
4) Start investing early with a goal-based approach
Start investing as soon as possible, even if the amount of investment is small, and let the power of compounding show its magic. Having a goal-based approach helps you to determine how much money should invest to fulfil your goal. This can save you from unnecessary financial stress and save you lots of money.
5) Pay off your debts
The feeling of paying off debt is universal relief. If you pay off your debts frequently then you have no burden over your shoulders in the future. Paying off debt doesn’t sound as glamorous as putting it in your account, but it actually brings you closer to financial independence.
As we discussed earlier, a financial freedom mindset can be attained by imbibing good money habits and focusing on your goals.