In addition to enjoying our life after retirement, we also want to be financially free—that is, not have to worry about money, which could end up causing us stress, which we should not share if we are financially literate.
Robert Kiyosaki once said, “To achieve financial freedom, one must be either a business owner, an investor, or both, generating passive income, particularly every month.” Simply means that our salaries are insufficient to allow us to live comfortably and that we will eventually experience financial difficulties along the way.
If you are persistent enough to hunt for a suitable investment that will provide you the independence you desire, you may invest your money and increase your productivity. If you have purchased a house and lot, you may be able to rent it out and have the tenant cover your monthly expenses for energy, water, and taxes.
#1 Setting your Life Goals
As we grow older, we should set our goals, whether long-term or short-term, that can be our guide to achieving the freedom we desire. Prioritize creating long-term goals with your present and future responsibilities as a guide to achieving them.
With the expenses that we have, it is essential to factor to create our monthly budget planner for us to see where our money goes and to manage it properly. For future reference, it’s one step in achieving the freedom we have desired for a long time.
#3 Creating a Passive Income
Passive generating incomes could be rentals, affiliates, or investments that are more beneficial to other people. By being passive, you can work on other things by receiving other sources of income that you don’t have to bother working on because you just let other people or the head roll your money in.
Being informed or knowledgeable about how an investment works is one’s defense against fraud or scams. An individual should have a basic understanding of finance since it will help them manage their money wisely and keep them up to date on the newest trends that will help their investments grow.
#5 Hire a Financial Advisor
You have a healthy investment return but struggle to manage your money. In that scenario, you can begin working with a financial counselor who will serve as your mentor and show you where to invest your money correctly. It’s a fantastic place to start since you may enjoy living well without overspending or taking what you already have for granted. Although not necessary, it is advisable for some people who struggle with money management.
#6 Pay off your Debts
Debt repayment is one of the best things you can do for your finances. Making sure paying off debt becomes one of your top goals. Having debt now just makes you feel burdened in the future and keeps you from achieving financial independence. Along with creating a strategy to pay off your debt, try to cut your spending so that you can put the extra money you save towards paying off your debt. It can include spending less on entertainment and eating out less frequently, but it’s a small price to pay for financial freedom.