Most people today still fail to undertake the most basic steps needed to achieve financial freedom, such as making a monthly budget, setting up an emergency fund or even automating their investments.
You’re probably familiar with that feeling — a sudden urge to get your finances in order.
In truth, while there are many paths to financial freedom, without steps like these, even setting foot on that path is unlikely. You may ask yourself: “Sure, achieving financial freedom sounds great. But what does it mean to be ‘financially free’ anyways?”
Whether you’re looking to benefit from personalized budgets like Joel, retire early like the bloggers at Think Save Retire, or get out of $200,000 debt and overcome horrific traumas like the anonymous blogger at Refined by Fire, their stories demonstrate that financial freedom is possible in many ways.
It turns out, there is no one proven path; however, there is one common lesson we can take away: The Road To Financial freedom must start with a shift in our money mindset.
First, ask yourself if any of these scenarios sound familiar:
Without fail, an unexpected expenditure arrives. A sudden large medical bill is charged. Car repair expenses rise. School enrollment fees. A mortgage.
How are you going to pay for all that?
These life events can catch us off guard — and are made even more worrying when a global pandemic strikes. What are you going to do now? That was certainly not part of the plan.
There are, fortunately, guidelines that each of these stories share that prove that adopting a new outlook and lifestyle habits can dramatically improve our financial outlook.
In short, the road to financial freedom starts when we can stop worrying about making enough money. Financial freedom does not always require a dramatic custom change to our character. Indeed, the path to financial independence often results from the simplest changes of habits.
However, most of us cannot tick off even two of the below easily achievable actions of the financial freedom checklist:
- Create a budget
- Start an emergency fund
- Build a retirement plan
- Automate investments
Believe it or not, if you also cannot check off two of those, you have a lot in common with many people who today have claimed financial freedom.
Popular personal finance management (PFM) bloggers have built large audiences and reputations often on the fact that many of them were once like most of us. Their stories are relatable, powerful and actionable.
Perhaps the most instructive, they all have outlined a different path to success, so reading and comparing their stories presents an opportunity to understand which sets of advice may work best with your particular lifestyle.
We want to bring you the stories of:
- Joel, the founder of 5am Joel and a blogger at Budgets are Sexy — a 35-year-old Australian that lives in Los Angeles.
- Melissa Hollis Goff, the editorial director of Think Save Retire — an aspiring “rich grandma” that lives in the US Pacific Northwest.
- “Mr. Refined”, the founder of Refined by FIRE — a “financial enthusiast” that climbed out of a $200,000 debt following a series of horrible events.
How career choice actually influence financial freedom?
There’s a mental difference between a “career” and a “job”. you want to make your overall “career” as long and as happy as possible, so money isn’t a big factor when choosing your career.
That being said, when starting your journey, you might obviously chose various “jobs” that you didn’t necessarily want to do long term, but provided higher pay to build your nest egg.
What long- and short-term strategies will help you reach your goals?
Self education has played a huge role in achieving ones goals early in life. The more you grow and learn, the more you can accomplish.
Investing isn’t optional – it’s mandatory. The earlier one starts investing in life, the earlier they can achieve financial independence!
Today’s modern tools and information make it very easy to invest your savings, in a smart and proven way. I recommend everyone put their investments on auto-pilot, setting up a system that builds wealth in the background while they focus on other fun activities!