Steps towards financial freedom

Do you want to be financially free!

If yes , then you are on write place let’s discuss some of the steps in order to start your journey towards financial freedom before jumping into the steps let me tell you what financial freedom is !
according to me the true meaning of financial freedom is to live a life free of financial insecurities .Let us see what steps you can take to ensure you remain free from financial worries and curate a bright financial future for yourself and your loved ones although specific steps may vary depending on individual circumstances, here are some General steps

1. Save and Invest :

Save money in an emergency fund that can cover at least three to six months of living expenses. This fund acts as a safety net during unexpected financial challenges and prevents you from falling into debt.However, saving alone does not make anyone wealthy.The investible surplus, that is the monthly earnings minus the monthly savings, needs to be deployed in productive asset classes and investment avenues that will lead to earns efficient returns for you and counters inflations

2.Set clear financial goals:

The financial goals you set must be S.M.A.R.T, i.e., Specific, Measurable, Adjustable, Realistic and Time-bound — not ambiguous — plus, they need to be categorised as short-term, medium-term and long-term. For example, you might aim to pay off all your debts, save a certain amount of money, or build a passive income stream.

3. Focus on multiple sources of income:

In an era of financial uncertainty and rising inflation , relying solely on a single income source is insufficient to meet both current and future needs. If you had faced uncertain job loss or encounter challenges in your chosen profession or business, your financial stability could be at risk. To boost your monthly earnings and enhance your financial security, it is crucial to explore diverse sources of income. By leveraging your passions or hobbies and investing some training and effort, you can transform them into profitable professions or businesses. For example , you might consider becoming a social media influencer, generating income through clicks, views, likes, and subscriptions to your content.Alternatively, freelance opportunities such as writing, photography, or teaching can also provide additional income streams.

4.Reduce and manage debt:

Borrowing money is not a bad thing as long as you are comfortably within your means of repaying it.  Prioritize paying off high-interest debts, such as credit cards or personal loans. Consider strategies like the debt snowball (paying off smallest debts first) or debt avalanche (paying off highest-interest debts first). Avoid taking on new debt unless necessary.

5. Ensure you have an ideal insurance coverage:

No one can ignore life uncertainty but you should take steps to address the potential risks that you may face in life. Thus along with saving and investment do not overlook the need to have an ideal insurance both :life and health

if you are the primary financial support of the family then it is essential to have you insured considering your human life value . This will provide financial security on your dependent.

Likewise considering the modern lifestyles many of us lead and the increased stress we experience, we become more susceptible to various medical conditions. If you do not hold an adequate health insurance cover and if you land up in the hospital, it may exhaust your savings and investment that you kept for other goals. Thus, it is advisable to obtain health insurance coverage.

Last but not the least :

Remember, achieving financial freedom takes time, discipline, and patience. It’s a journey, so be consistent and persevere even during challenging times.