The key to financial freedom and great wealth is a person's ability or skill to convert earned income into passive income and/ or portfolio income
Robert Kiyosaki
Money is an important aspect of our lives. We work our hearts and soul each day all day to make money manage money spend them judiciously use it and save it for the near future.
Now, let us look into two questions that are deemed important to be considered here,
Tips to achieve financial freedom
Attaining financial freedom is the ultimate freedom one can have in their life. It is not a habit that one is born naturally it is a skill that is learned with experience, management, and discipline in life.
1. Budget before spending
Keep a steady budget before you spend your money so that you may examine your habit of financial stability.
2. Track down your expenses
With every spending of your money make sure to weekly or within every 10 days to track down the amount of money you have spent and where you have spent list down over the column whether it was necessary or not.
3. Save more and more (X Repeat the cycle)
Save as much as possible it will only help you to be ready for unforeseen circumstances but will also contribute a lot to your near future expenses.
4. Make investments
Try to invest your money and other assets in investments it will yield greater profits and stable income opportunities in near future and also in the present time.
5. Invest in stocks
The stock market is an agent for passive income. Stocks are utilized by a high percentage of people across to boost their financial capabilities and generate higher levels of income in their accounts.
6. Control your spending habits
Try to limit your spending to a larger way or the extent possible it will be beneficial for you and your family in the long run
7. Make payments in cash
Avoid the use of credit cards because using plastic money as a source to relive the expense of the present time is just going to be beneficial for you at that very moment but tomorrow you must incur the payment by an additional charge of interest levied upon the credit cards. so, choose cash over cards.
Signs that say you are good with money
Over the years if you have saved your money adequately it means that you have met all your expenses along with that you have saved enough for the near future while building a house of your own by paying all the bills which comes necessary. Furthermore, you have an investment package ready while keeping an emergency fund ready.
Steps to build your wealth
To build your wealth as a beginner you must keep these basic rules of thought in mind.
1. design your plan of budget and expenses every month to minimize spending.
The easiest method to ensure that all bills are paid and savings are progressing as planned is to create a monthly household budget and adhere to it. Additionally, having a schedule helps you stay committed to your objectives and resist the inclination to indulge.
2. Invest in things that you are ‘sure’ about
The first step is to invest as much as you can as soon as you can, making use of compounding to your advantage. Next, raise your investments annually by a proportion more than your income growth.
3. Decide and stick to your goals to avoid any kind of a debt
Everyone aspires to financial independence. What a wonderful dream! But a wish is all that a dream is without a purpose. Setting financial objectives, such as paying off debt or saving money for retirement, is crucial on your path to financial independence. They give you a goal to strive for.
How can you tell if your aim is worthwhile? To set goals that truly work, follow these steps:
• Be precise.
• Set quantifiable objectives.
• Set a deadline for yourself.
• Ensure that these are your objectives.
4. Develop multiple sources of income
The second source of income is possible. The first strategy is active income, in which you exchange your time for cash. The alternative method of generating additional revenue is to do it passively, which involves doing the work only once and having the money stream in automatically thereafter.
If you choose the first strategy—trading your time for money—you are constrained by the number of hours in a day, which is always restricted to 24. Active income, however, may be put into place quite quickly. Additionally, it can quickly get you started with side jobs.
plan your budget by adequately by considering all your needs and requirements lists with the essentials and luxuries.
If overall budget proves to be difficult to you then you can consider planning your monthly budget as per considering all the bills and expenses altogether.
5. Practice affirmation
While practicing financial freedom you must also ensure to involve positive affirmation to include in your daily practice of financial freedom. Positive Affirmations are like those which speak out loud in your heart and give you hope and positivity that money is in your hand and you are made to save it.
financial freedom looks amazing over the span of years. All you have to do is master your financial such that you attain the ultimate freedom.
Health is wealth
The above proverb is very true and is applied in every aspect of your life.
maintaining strong physical health also has a very positive effect on your financial health.
It is simple to invest in your health. It entails going to the dentist and doctor regularly and adhering to medical recommendations for any issues you experience. Simple lifestyle adjustments, including increasing exercise and eating healthier, can help—or even prevent—many medical conditions.
When you decide to seek help, schedule an appointment with Dr. Bakshi.
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