Table of Contents
- The Top 5 Must-Haves of Financial Freedom
- The Path To Financial Freedom
- Book Recommendations
- 1. One Up On Wall Street: How To Use What You Already Know To Make Money In The Market by Peter Lynch
- 2. The Total Money Makeover: A Proven Plan for Financial Fitness by Dave Ramsey
- 3. Building Wealth And Being Happy: A Practical Guide To Financial Independence by Graeme Falco
- 4. Money Grows on Trees: How to Reshape Your Thoughts, Beliefs and Ideals About Money and Become Truly Wealthy by Jeremy Alexander Newsome
- 5. Money Honey: A Simple 7-Step Guide For Getting Your Financial $hit Together by Rachel Richards
- 6. Broke Millennial Takes On Investing: A Beginner’s Guide to Leveling Up Your Money by Erin Lowry
- 7. Rich Dad Poor Dad: 20th Anniversary Edition: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! By Robert T. Kiyosaki
- 8. The 25 Habits of Highly Successful Investors: How to Invest for Profit in Today’s Changing Markets by Peter Sander
- 9. The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel by Benjamin Graham
Famous American businessman and author Dave Ramsey right says, “You must gain control over your money or the lack of it will forever control you”.“You must gain control over your money or the lack of it will forever control you” Click To Tweet
Money makes the world go round, it’s said. This does not mean that earning a lot of money must be the only aim in life. Instead, realizing the importance and value of money in securing our lives and those of our loved ones is equally important. With rising costs of basic amenities and necessities, housing, education, healthcare, transportation and fuel, achieving financial stability and security has never been more important.
When we talk about true financial freedom, it does not imply earning, inheriting, and having money. Financial freedom has to come from decisions and choices. It is mainly about what we do with the money we have. Even if you are rich and affluent, that does not guarantee financial freedom. If you have all the money in the world but no plan to grow it, or you spend it all and are left with nothing for a health emergency, or have risky investments that look credible superficially, you are not financially free or empowered.
True financial freedom means being and feeling financially empowered. Having money shouldn’t make us anxious. If your money is troubling you then you certainly don’t have financial freedom. If it controls you, it means you don’t have financial freedom. Money and finances shouldn’t control us but enhance and enrich our lives. In this blog, we look at financial freedom holistically, and as a factor that augments the quality of life and makes us happier and secure.
The Top 5 Must-Haves of Financial Freedom
- Freedom from debt
- Being able to meet fixed expenses
- The freedom to do what you like
- Accumulating savings to meet important needs such as retirement, education, health, etc.
- Having sufficient finances to meet unforeseen exigencies
In order to achieve the above, certain efforts must be made on our part. Let’s find out how and what.
The Path To Financial Freedom
Chris Hogan is a leading financial expert, speaker, advisor and bestselling author best known for his book Everyday Millionaires: How Ordinary People Built Extraordinary Wealth―and How You Can Too. Hogan lists out 5 essentials to ensure you are on the path to financial freedom and empowerment:
1. Learn Money Management
Many of us rely heavily on our parents to keep track of finances, deposit checks in banks, operate your savings account, invest in assets like mutual funds, etc. However, money management is an important aspect of becoming truly independent. So stop being oblivious to managing your money. Be proactive, ask questions and seek information on money management. Check out A Beginner’s Guide to Investing: How to Grow Your Money the Smart and Easy Way by Alex H. Fray.
2. Tie Up Loose Ends
There is no such thing as a small debt. Debt is a debt, so make it a priority to pay it back asap. Credit card debt for example is one of the worst debts to have to loom over your head. If your job isn’t sufficing your expenses, consider getting a part-time job or start a side hustle like a small business and begin creating your own wealth to close your debts. If you stay debt-free, you will end up saving more. When you save more, there will be more money to invest and create wealth in the long run.
3. Choose Your Career Wisely
We often hear people telling us to do what we love and love what we do. Sometimes, it is also important to ask ourselves if what we are doing is adding value to our financial growth as well. Simply being happy does not cut it, your career needs to support you and your family (if you decide to have one) financially. Do take up that lucrative offer without letting emotions get in your way. For example, if a new job needs you to move away from friends and family, do it! Be practical.
4. Plan Finances
If you wish to gain true financial freedom and be empowered financially, you’ve got to plan. If you are young i.e. in your mid-20s or 30s, now is the right time to begin investing if you haven’t already. The sooner the better. Financial planning encompasses securing finances for needs like health insurance, childrens’ education, holidays, emergencies, etc. Plan your finances in a way that can meet all these expenses without having to rely on or burden someone else.
5. Know Investment Options
The world market is dominated by a host of factors like a rise in oil prices, wars, pandemics, etc. therefore certain investments may be a better idea while others may not. For example, if you are looking for long term wealth creation then low-risk mutual funds and fixed deposits are a good idea. Sounds like Greek and Latin? Worry not! No one’s born an expert. You’ve got to learn! Grab a copy of Stock Market Investing for Beginners by G. Smith to familiarize yourself with the nuts and bolts of finance.
Here are some recommendations for reading up on financial freedom, success and empowerment:
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
2. The Total Money Makeover: A Proven Plan for Financial Fitness by Dave Ramsey
3. Building Wealth And Being Happy: A Practical Guide To Financial Independence by Graeme Falco
5. Money Honey: A Simple 7-Step Guide For Getting Your Financial $hit Together by Rachel Richards
Financial freedom is not only about being rich but having a sense of empowerment which gives us peace of mind and provides security and stability for our near and dear ones. One may be rich at the moment but fate may have something else in mind. So focus on long term stability than making a quick buck and thoughtlessly spending on things. Explore good investment options and focus on becoming stable and empowered. That is true financial freedom!