Financial freedom: what a wonderful prospect. It’s something everybody in the world would want, but how can it be achieved? Here are five key points.
Planning
Financial success doesn’t often happen by accident. It comes about through a series of planned events, carefully thought through in advance and diligently carried out. It may be a process that exists solely in your head, or you may want to write it down to make it seem more real. Either way, you need to have a plan and, in the same vein but slightly different, a strategy. The plan is what you intend to do. The strategy is how you’re going to make it work. There may be a timeframe attached to this because setting goals can create the incentive to move things along.
Discipline
So, you have devised the plan and you’ve worked out your strategy. Now you must deliver the goods, and it can be a hard slog, but sometimes you just must hammer away at the boring stuff or the difficult tasks because they need to be done before you can get to the good bits. Discipline means getting up early to start the day. Being self-employed doesn’t mean you don’t have a boss. Every client or customer is your boss for the duration of their project. There is also yourself, as you’re in charge, you’re responsible, and you hold the keys to a great future, but you must be strict with yourself.
Prudent Borrowing
Everybody must borrow from the bank at some point. It might start with a student loan, then you need some more to set up the business. Opportunities may come your way that need investment such as better equipment, perhaps, or a more modern premises, or maybe you can buy out a competitor and gain their clients. If you don’t have the cash, you’ll have to get it from somewhere, and it’s what banks do: the interest you pay on a loan is how they make their money.
If you’re wondering what to know about a personal loan before signing on the dotted line, it’s important to review a full guide that explains the terms and conditions in detail. The basics include don’t borrow more than you need and don’t make the repayment period longer than necessary. The faster you pay it off, the less you will pay back overall. You get the loan, make the repayments, and close the chapter as soon as possible.
Predictability vs. Taking Opportunities
If you know how much money is going to come in each month, that gives you the freedom to spend what you need to and give yourself a break sometimes. That doesn’t mean you should close your mind to unexpected opportunities. If you hear of something that could help in the long term, you need to assess it and, if it’s right, act while the chance is still there.
Investments
Making your money work for you is a great way to make it increase. At a basic level, it’s why people use savings accounts rather than keeping a stash of cash under the bed. Sometimes you must speculate to accumulate, and yes, there are risks involved, but if you’re careful as well as decisive, you can add an income stream.
