Planning your steps to financial freedom

financial freedom

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.

The Essential Guide To Gaining A Brighter Financial Future

Let’s face it, financial freedom is something that everybody wants to achieve. Money is the key to creating better opportunities in life. Knowing you have a safety net of cash will inevitably take a huge weight off your shoulders if a problem ever does surface.

Even if you’re living comfortably, gaining a better financial status is still highly beneficial. While we all have these positive outlooks, achieving those goals can feel like an impossible challenge. However, with these tips below, you’ll soon be enjoying a far better financial situation.

 

Understand Your Debts

In today’s culture, the vast majority of us will incur debt at some stage. Often, this will simply mean borrowing money for mortgages and other purchases. However, some situations are far worse than that. Don’t let it scare you, though. Use this as an opportunity to change.

 

image source: http://bit.ly/1KIDsY3

 

Understanding your debts and financial situation will give you a far better chance of improving it. It could mean taking a bad credit loan or finding alternative methods. In either scenario, your best bet is speaking to a financial advisor.

Once you know the right direction, you can start to take forward steps.

 

Strike Better Deals

One of the main reasons for having a worse financial situation than you’d like is wasting money. You work hard to earn the money that you do, and it’s a huge shame that many people let it slip through the net when it doesn’t have to.

There are plenty of savings that can be made around the home. Changing energy suppliers and cutting unnecessary services will improve your situation. Moreover,  you should always search around for the best deals when committing to major purchases such as cars or mortgages.

Using your resources effectively is key to gaining your financial freedom. If you don’t do this, your success will always be limited. Don’t let this be an issue.

 

Earn More Money

The best way to acquire more disposable income is simple: earn more money as a whole.

 

money roll
Image credit: zack Mccarthy – https://flic.kr/p/BhdpN

 

Striving for better success at work is important for various reasons. But monetary issues are amongst the most crucial. Many workers feel underpaid and undervalued by their bosses. If you feel like you deserve a raise, then ask for one. The worst thing your employer can do is say no.

Even if they do reject your appeal, it shows a willingness to better yourself. That hunger will not go unnoticed.

 

Make Your Savings Grow

Whether you can earn more money or not, savings are a crucial part of preparing for the future. As such, it’s imperative that you encourage them to grow at the fastest rate possible. In truth, letting it sit in a bank account isn’t the best solution.

Learning how to invest in oil, for example, could be the key to unlocking a brighter financial future for you and your family. If you master this market and strike the right deals, there’s no limit to what you can achieve.

If it’s going to see your money grow at a faster rate, it has to be worth the investment.