How to Achieve Financial Freedom?

Everybody will worry about how much money they've got left and whether they can sustain themselves when hard times come. Even when you have money, you will still be worried about all the bills and debts that need settling.

One might ask about emergency funds in case things go south, especially during pandemics like COVID-19 where most people get fired instantly. Worst come to worse some people don't even have any savings that they need for a rainy day and you definitely don't want to be in that position.

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So what does it mean to be in a state of financial freedom and how to achieve it?

In simpler terms, financial freedom is when you have extra money after spending it on all your needs and wants. When the moment comes when you don't have to worry about not having enough money, this is called financial freedom.

A lot of people misunderstood the concept of 'financial freedom' which they thought meant not having any debt or basically having a bit of saving for the future.

However, being free from debts at the early stage is the first step towards achieving financial freedom.

Does achieving financial freedom mean you don't have to work anymore?

Not necessarily. There are numerous ways for you to actually have an income aside from working. Even if you don't work every day, there is still a way to rake in some cash. There are some who still work not because of the desperation of needing money but simply because they love to work.

One other misconception is that people think that just because you are rich you must have achieved financial freedom. It doesn't work like that.

For instance, there is a rich man who dedicated most of his life to his work to gain more money. Until one time, his body simply cannot take it anymore and he needed a rest. He was not able to spend his precious time enjoying his money.

Whereas, another normal person happens to have a lot of money and are very smart in investing most of his money. At the end of the day, the man has a strong passive income that is consistent all the way.

In both of these cases, we can see that both of them are considered rich but only one of them has achieved the 'financial freedom' status.

Achieving financial freedom is very crucial since it will guarantee you a brighter future. You will not have to worry about suddenly not being able to work or having an emergency which requires money.

This basically means that we must have an investment as well as a passive income in order to survive an unpredictable future.

Is it impossible to be achieved?

Realistically not everyone can achieve a state of financial freedom. With that being said it doesn't mean it is impossible to achieve it. Everything starts with a small sacrifice in order to gain money at the beginning.

Getting a side income these days are possible with all the advancement of technologies, it is not that hard to find a side hustle to be done.

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When you start to gain more money, whether you like it or not, some of it needs to be invested especially in stocks or real estate to make sure that the money can grow. It's not a very good idea to simply put it into your savings account as the dividend is relatively low.

But of course, the temptation will always be there especially seeing most of your friends going out to parties and spending lavishly to keep up with the current trend. Setting the right motivation for yourself is very crucial so that you can achieve the ultimate target.

One thing to bear in mind is that, at the end of the day when you are in trouble, you should constantly ask yourself this question.