(ThyBlackMan.com) Financial freedom. It’s something we all want, but millions of us fail to achieve. Unless you’re raking in a six-figure salary, it may feel as though you’ll never truly unlock a brighter financial future. But you can.
Keep the ABCs in mind at all times, and you will soon find your way to a better financial status. Let’s get started.
Accumulate
Before looking at how to achieve financial freedom, you must first learn to define it. Financial stability doesn’t come simply from having some cash in your bank account or wallet. You need to know that your long-term future is secured, not least when retirement comes.
While saving in your 401(K) is a good starting point, you’ll need to do more. Looking for ways to grow your capital at a faster rate than your bank account is key. Spread betting Forex trading is particularly popular as it offers a tax-free investment. This instantly means that you can see big rewards even with a relatively small ROI.
Building a diverse portfolio may also include real estate investments, stocks, and cryptocurrency. When you have a range of commodities, including some that can be quickly accessed in an emergency, you’ll be in a far better position. Not least in terms of your mindset.
Budgeting
Financial management is a complex subject that requires a lot of hard work. However, the fundamental formula for success could not be simpler. Spend less money than you earn, and your financial health will continue to improve. Spend more than you generate, and problems will surface.
You can take control of this aspect with immediate results. Trim the fat from your utility bills and ongoing subscriptions by matching services to your needs. A broadband speed test, for example, may show that you are paying for a better package than you receive. Similarly, using discount codes and loyalty schemes can make a difference.
The key is to be organized, which means knowing how much is entering and leaving your account at any time. Accounting software is readily available and will track every aspect of your finances. In turn, you should be able to keep making improvements over time.
Control
Your natural instinct is to focus on the future. However, you must not ignore your past financial mistakes, especially as they could be holding you back. Ending bad habits, such as using store cards is one of the most proactive steps you can take.
Repaying debts should be a priority, but you should do it in a practical way. Otherwise, the short-term progress will be followed by long-term regressions. Whether you take the DIY route or call a pro is up to you. But finding a way to draw a line under the situation without causing damage to your future financial health is vital. And you must do it now.
You cannot build a house without first laying the foundation. Correcting financial mistakes is the foundation of building a financial future. Even if the road ahead is a long one, the knowledge that you’re moving in the right direction is key.
Staff Writer; Bobby Adams