How to attain financial freedom

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Driving the car of your dreams, owning a big house and travelling the world is not the absolute indicator that you have attained financial freedom. Financial freedom can only be said to have been attained if you are able to care for such expenses comfortably- without worrying about the state of your bank account or how you will survive when you retire. Everybody wants to attain financial freedom so, don’t we all crave for some tips? Here are three great ones:

Maintain rather than replace

Be careful to just maintain rather than end up replacing machines and other possessions. Your car, for instance, will last you more years if you service it and do all repairs in time than if you don’t. The same goes for something as small as an iron box which if not handled carefully will ‘die a premature death’, forcing you to replace it. The money used to replace items, could have been used to invest or save to shorten your journey towards financial freedom.

Invest in channels for independent income

Independent income is that which you earn rightfully but without having to directly exchange it for your labour or time. It includes things such as government benefits, rental income or money you get in the form of, say, dividends for owning shares in a business that is not yours and you do not work at. You really do have financial freedom if you can spend money while concentrating on other things rather than where the money actually comes from.

Set goals backward from the future

Now that you understand what financial freedom is, establish what that looks like for you, and at what age. Work this backward by determining financial milestones you need to have attained at certain points in life. This will keep you on toes with the practical steps as well as see if your goal of financial freedom is a realistic one.

 One way or another, keep working towards financial freedom.

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