Financial freedom for many may seem far away, for some even impossible. There are an abundance of things you can do to ensure this becomes a reality. Planning is required, and hard work is needed but creating financial freedom is possible through just a couple of simple steps to you should follow.
1. Have a percentage in mind to save
Saving is one of the most importance factors when it comes to establishing financial freedom and one of the best ways to do this is to decide what percentage of your income will go into savings each month. For example, this could be 10% of earnings, but for some with more comfortable salaries this could be increased to 50%. If you chose to set this up through a direct transfer, the funds will automatically go into a savings account and quite often these numbers add up quickly, which may leave you surprised when you check your available funds. The percentage you chose to save can be adjusted accordingly to your current financial position. It is unlikely that around Christmas you will save extra, but ensuring you have a certain sum automatically saved each month is one of the best and most productive ways to maximise your household income.
2. Invest in Property
There are many lucrative ways that can make your money stretch further. Property is the only asset that produces two different returns on investment, capital appreciation and rental yields which helps to secure financial freedom over the likes of stocks and shares. Capital appreciation refers to the amount a property will appreciate by in the future. In 1998, an average London home was worth £115,000, however two decades later in 2018 the average property price exceeds half a million at £671,412. Besides this monetary growth, rental returns can be gained alongside and property investment specialists like RW Invest offer properties in which you can secure solid returns and potential for capital growth in years to come, meaning that eventually the property will end up paying for itself. Click here to view their full portfolio: https://www.rw-invest.com/. Buy to let property is emerging as one of the most popular ways to grow your income, as well as being a stable way to entrust your money.
3. Aim to diversity your income
Diversifying your income is one of the best ways to create wealth as it provides an extra level of security. Having more than one income stream allows a safety net to ensure you always have an income from one or more other avenues. Many people have avoided serious financial difficulties because of diversifying their income, this may include obtaining a second job. If you are unsure how to add extra income then consider selling unwanted items, involving yourself in part time work or venture into freelance work or an independent business.
4. Ensure all debts are paid
This can sometimes be easier said than done, but one of the most essential things to remember is as soon as you pay off your debt the quicker you will receive financial freedom. To avoid this altogether avoid spending money you don’t have in the first instance. If you are in substantial amounts of debt, calculate how much you owe and set yourself a strict time frame, and be wary not to incur any additional bank charges in the meantime.