Attaining financial freedom has always been my dream. I have been learning a lot about managing finances through so many financial resources, may it be online or books and I also attend seminars about personal finance whenever I get the chance or opportunity. Learning about how to open ira is also very useful. We don’t want to be a burden to our children when we retire right? So saving up for retirement is a must so we’ll not end up broke when retirement comes.
There are a lot of things to do before achieving financial freedom. It is not as easy as it appears to be. It involves hard work, discipline, perseverance, commitment to ones goals. The first step to financial freedom is to eliminate all bad debts that we have. Bad debts take away money from our pocket and the law of compound interest works against us if we have bad debt. The next step is to save up. For me, saving up 20 percent of our gross active income is ideal. Save up around 6 months to one-year of salary for emergency in case we lose our job. That way, we have something to spend while we look for another job. Then also set aside funds for healthcare. It is also advisable to get health insurance so we can use it when necessary.
The next thing to do is to invest. We need to invest some of our savings in order for it to grow. Investing in diverse portfolio is what financial experts advise. As the old adage says, “Do not put all your eggs in just one basket”. Then strive to get multiple income streams and create passive income. By doing all of these, we can achieve financial freedom.
and of course having a good time while doing all this... :)
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