Financial freedom, in its many forms, is the ultimate goal of most people. As for how they get there; there are infinite numbers of ways. But, there are definitely some good practices and theories that can be used no matter what.
Five of them that can be used in this general manner including steering clear of expensive habits, investing wisely when possible, avoiding financial fads, keeping your credit line absolutely squeaky clean, and avoiding high-interest loans.
Steer Clear of Expensive Habits
If you really want to be financially free, especially in the early stages of making your money, you have to make sure you avoid habits that can be financially draining, especially things like alcohol, or maybe expensive tobacco habits. Some other expensive habits that you can pick up when you’re younger might even land you in rehab. Not that there’s anything wrong with fixing a problem once you realize you have it, but in terms of financial freedom, it’s definitely a non-starter in that the more you spend on your habit, the less free you are, essentially.
When it comes to being financially free, one smart thing to do is use your money to make money, which means learning to invest wisely. There are a number of investment tips you can find online, but one of the best ways to truly get personalized and targeted advice is to talk with an investment specialist privately and face-to-face. The general information available online and through books is fine, but to really get to that financially free position quickly, it takes a bit of personal savvy that only comes from talking to a human.
Don’t Follow Financial Fads
Financial fads are a real problem for people who get caught in their nets. These can be suggestions for investment, or suggestions to purchase real estate in order to flip it and sell it later, or perhaps even backing a product. Anything with high risk can potentially net you a gain, but you also have to be prepared to lose what you put in, and that’s not a particularly freeing concept.
Keep Your Credit Line Clean
And you can’t be financially free if you have outstanding credit card debt. Period. And the best way to stay out of credit card debt is simply to not use a credit card unless you can pay it off at the end of every month. It is the simplest of all the financial freedom requirements, and also one that people have the hardest time following.
Avoid High Interest Loans
And finally, if there’s any way to avoid high-interest loans, be they for houses, businesses expenses, or even school, then you should take those courses of action. Though they aren’t quite as bad as being in credit card debt, they can take an equal amount of time to get back to zero depending on payment schedules.