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4 Secrets of Financial Freedom

4 Secrets of Financial Freedom

Everyone is looking for financial freedom, and we try to do it by getting involved in something we are passionate about. Many people have found this freedom by starting a business or working their way to the top in a company. In the past 5 years, there have been more millionaires than in any other period looking back. Much of their success can be attributed to the popularity of the internet, and the resources available online. The cool thing is that many people have written about this success offering their insight into what makes a person successful, or what someone must do to stay ahead of their competition. These same people have mentioned the “secrets to financial freedom” and have written lengthy books while making millions of dollars through sales. Today, we’ll be going through something very special…

We’ll be exploring the “so-called” secrets and what you can do right now to start working your way towards financial freedom. However, it’s very important to mention that this freedom does not necessarily mean you’ll be happy because no amount of money can buy happiness. However, you can use the money you earn to help others and build a wall of happiness around you.

Let’s get started and your feedback will be greatly appreciated:

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1. Money Management

You might have a great foundation with your family supporting you or have a high paying career, but you won’t get closer to financial freedom if you don’t know how to manage your money. I know many people who spend more than they make, and this doesn’t bring them closer to their bottom line. To achieve true financial freedom, you must know how to manage your money and learn how to save, letting your money work for you. Many of the top money managers have stated that if your spending habits are uncontrollable, then you’ll end up worst off then some of the people who don’t make much at all. Therefore, saving money is one of the most important steps to financial freedom.

Start to understand your spending habits, and jump back on track by controlling your expenses, learning about savings and budgeting. Know what’s important right now in your life and what you can do to reinvest into your savings. Identify the areas where money spent truly pays off in a better quality of life for your core interests. For example, some people spend money on their business because they know long-term this will increase profits, grow their customer base and ultimately their business.

2. Your Career Choice

This is going to be one of the most important decisions you’ll make ever, and you should spend time making it by researching growth markets. For you to get closer to financial freedom, you must love what you do, and be earning enough money doing it. However, on the other hand, I know a lot of people who make enormous money but are miserable getting up to go to work in the morning. Follow your passion and everything else will fall into place accordingly.

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Some of the best advice I can give you about choosing a career is to get involved in one which plays to your best strengths, and where you’ll be an asset to the company. If you start your own business, then base it around those very same set of skills.

3. Always Set Goals

Someone once provided me with a great analogy about why setting goals is important, here what they said –

“When you set goals, you’ll be like a ship with a compass knowing exactly where it’s going. However, without goals, you’ll be lost at sea”.

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Therefore, you should have a clear-cut plan about what you want to accomplish, and how you’ll get there. You should set small goals which, when combined” will lead you to a higher purpose. Setting smaller goals provide you with motivation each time you check something off your list. So, what makes a great goal plan?

Let’s look at some of the questions you should be asking:

  • What is my main objective?
  • How can I achieve my end goal?
  • What is the time-limit I must meet this goal?
  • Can I network with others for help?
  • What other way can I achieve my end goals? Hiring help, working for others, etc.

4. Network with Others

This can also be commonly grouped with helping others, and building a network of people that you can rely on to get the job done No matter what successful entrepreneurs you ask, they’ll all give you the same advice – you must get help and then help others to succeed. There are people who have been involved in the same business before you so know creative ways to get the job done. They know the right people which will be a great asset when trying to grow your business, and to your bottom-line. However, for you to benefit you must reach out to people in your industry and build close relationships with them. These people can help increase your brand awareness, profits, guide you in the right direction, and finally help you from making common mistakes.

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How can you find the right people to network with? Luckily, we live in a period where resources are available online so all you should do is a quick search. I would search in Google and find bloggers, companies or even marketing companies who are in your niche. Find and connect with the right person and reach out to them making sure your follow-up afterward. Tell them about your passion and ask them for advice on how you can grow your business leading you to faster financial freedom. Remember, financial freedom is all about making enough money to save, invest and using it to provide you the freedom you are looking for.

Final Thoughts

In the end, everyone is trying to achieve that complete financial freedom so they can live a more enjoyable fulfilling life. However, gaining this freedom does require smart investing and money saving. For example, it’s difficult to gain that freedom when you have uncontrollable spending habits without a clear vision. It’s time you start saving and investing in your business so you achieve that complete financial freedom.

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Rizvan Ullah

Online Blogger

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Last Updated on March 4, 2019

How to Use Credit Cards While Staying Out of Debt

How to Use Credit Cards While Staying Out of Debt

Many people will suggest that the best thing to do with your credit cards during these tough economic times is to cut them up with a pair of scissors. Indeed, if you are already in huge debt, you probably should stop using them and begin a payback strategy immediately. However, if you are not currently in trouble with your credit cards, there are wise ways to use them.

I happen to really love my credit cards so I will share with you my approach to how I use mine without getting into deep financial trouble.

Ever since about 1983 when I got my first Visa card, I continue to charge as many of my purchases as possible on credit. Everything from gas, groceries and monthly payments for services like my cable and home security monitoring are charged on credit. Despite my heavy usage, I have maintained the joy of never paying any interest fees at all on any of my credit cards.

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Here are some tips on how best to use your credit cards without falling into the trap of paying those nasty double-digit interest fees.

Do Not Treat Credit Cards as Your Funding Sources

Too many people treat their credit cards as funding sources for major purchases. Do not do this if you want to stay out of trouble. I use my credit cards as convenient financial instruments so I do not have to carry around much cash. In fact, I hate carrying cash, especially coins. When you buy things on credit, the purchases are clean and you will not get annoying coins back as change.

I do not rely on my Visa, MasterCard or American Express to fund any of my purchases, large or small. This brings me to my golden rule when it comes to whether I will pull out any of my credit cards either at a retail or online store.

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I never purchase anything with my credit cards if I do not have the actual cash on hand in my bank account.

If I really cannot pay for the item or service with cash that I already have at the bank, then I simply will not make the purchase. Remember, my credit cards are not used as funding sources. They are just convenient alternatives to actual cash in my pocket.

Make Sure to Always Pay Off Balances in Full Each Month

The next very important part of my overall strategy is to make absolutely sure that I pay the balances in full each and every month no matter how large they are. This should never be a problem if the cash has been budgeted for my purchases and secured in the bank. I have always paid my full balances each month ever since my very first credit card and this is why I never pay interest charges.

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Using Credit Cards with Rewards

Most of my credit cards are of the “no annual fees” type, including one MasterCard on a separate account I keep at home as a spare in case I lose my wallet or incur any fraudulent charges. However, I do use a main Visa card which does have an annual fee because all purchases on that card reward me with airline frequent flyer points. For me, the annual fee is worth it since I do travel and I get enough points to redeem many free flights.

You have to decide for yourself if you will charge enough purchases on credit each year without paying interest charges to warrant a credit card that rewards you with airline points (or other rewards). In my case, the answer is “yes” but that might not be the case for you.

I occasionally use a MasterCard or American Express card on small purchases just to keep those accounts active. Also, I have been to the odd retailer that accepted only a certain type of credit card, so I find that having one from each major company is quite handy. Aside from my main Visa card which earns the airline points, the rest of my cards are of the “no annual fees” variety.

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So this is how I use my credit cards without getting into any financial trouble with them. This strategy is recommended only if you are not in debt, of course. In fact, it is worth keeping in mind once you’re out of debt so that you can keep your credit cards active and treat them responsibly.

What are your credit card usage strategies? Let me know in the comments — I’d love to hear what methods you use.

Featured photo credit: Artem Bali via unsplash.com

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