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Published on April 16, 2018

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

Break Free of Your Finances

Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

Though it seems hard to believe, it is really very simple to get financial freedom.

To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

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Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

1. Stop Unnecessary Spending

We often spend money inwardly, instead of objectively.

For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

To stop this habitual spending, log down all your spending over the course of a month.

Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

2. Plan a Monthly Budget

This is a great opportunity to get serious.

Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

3. Cut-up Credit Cards

Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

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If not, you may want to consider ridding your life of the burden that credit cards bring.

Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

4. Increase Savings

There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

It’s good practice to save up to 15% of your income.

Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

5. Invest Wisely

Consider investing in funds.

Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

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Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

6. Invest in Gold

There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

Another way to invest in gold is through ETFs (Exchange Traded Funds).

These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

7. Stash Emergency Funds

Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

Make it hard to get your cash.

Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

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8. Find Fabulous Mentors

Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

9. Be Extra Patient

Patience is the key of financial success.

Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

Financial Freedom for All

Anyone can achieve financial freedom, regardless of their financial circumstance.

Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

Featured photo credit: rawpixel via unsplash.com

Reference

[1]Hartford Gold Group: IRA Retirement Accounts

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Robin Williams

Business Professional, Writer and Blogger

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How to Fight Information Overload

How to Fight Information Overload

Information overload is a creature that has been growing on the Internet’s back since its beginnings. The bigger the Internet gets, the more information there is. The more quality information we see, the more we want to consume it. The more we want to consume it, the more overloaded we feel.

This has to stop somewhere. And it can.

As the year comes to a close, there’s no time like the present to make the overloading stop.

What you need to do is focus on these 4 steps:

  1. Set your goals.
  2. Decide whether you really need the information.
  3. Consume only the minimal effective dose.
  4. Don’t procrastinate by consuming too much information.

But before I explain exactly what I mean, let’s discuss information overload in general.

The Nature of the Problem

The sole fact that there’s more and more information published online every single day is not the actual problem. Only the quality information becomes the problem. This sounds kind of strange…but bear with me.

When we see some half-baked blog post we don’t even consider reading it, we just skip to the next thing. But when we see something truly interesting — maybe even epic — we want to consume it. We even feel like we have to consume it. And that’s the real problem.

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No matter what topic we’re interested in, there are always hundreds of quality blogs publishing entries every single day (or every other day). Not to mention all the forums, message boards, social news sites, and so on. The amount of epic content on the Internet these days is so big that it’s virtually impossible for us to digest it all. But we try anyway.

That’s when we feel overloaded. If you’re not careful, one day you’ll find yourself reading the 15th blog post in a row on some nice WordPress tweaking techniques because you feel that for some reason, “you need to know this.”

Information overload is a plague. There’s no vaccine, there’s no cure. The only thing you have is self-control. Luckily, you’re not on your own. There are some tips you can follow to protect yourself from information overload and, ultimately, fight it. But first…

Why information overload is bad

It stops you from taking action. That’s the biggest problem here. When you try to consume more and more information every day, you start to notice that even though you’ve been reading tons of articles, watching tons of videos and listening to tons of podcasts, the stream of incoming information seems to be infinite.

Therefore, you convince yourself that you need to be on a constant lookout for new information if you want to be able to accomplish anything in your life, work and/or passion. The final result is that you are consuming way too much information, and taking way too little action because you don’t have enough time for it.

The belief that you need to be on this constant lookout for information is just not true.

You don’t need every piece of advice possible to live your life, do your work, or enjoy your passion.

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So how to recognize the portion of information that you really need? Start with your goals.

1. Set your goals

If you don’t have your goals put in place you’ll be just running around grabbing every possible advice and thinking that it’s “just what you’ve been looking for.”

Setting goals is a much more profound task than just a way to get rid of information overload. Now by “goals” I don’t mean things like “get rich, have kids, and live a good life”. I mean something much more within your immediate grasp. Something that can be achieved in the near future — like within a month (or a year) at most.

Basically, something that you want to attract to your life, and you already have some plan on how you’re going to make it happen. So no hopes and dreams, just actionable, precise goals.

Then once you have your goals, they become a set of strategies and tactics you need to act upon.

2. What to do when facing new information

Once you have your goals, plans, strategies and tasks you can use them to decide what information is really crucial.

First of all, if the information you’re about to read has nothing to do with your current goals and plans then skip it. You don’t need it.

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If it does then it’s time for another question. Will you be able to put this information into action immediately? Does it have the potential to maybe alter your nearest actions/tasks? Or is it so incredible that you absolutely need to take action on it right away? If the information is not actionable in a day or two (!) then skip it. (You’ll forget about it anyway.)

And that’s basically it. Digest only what can be used immediately. If you have a task that you need to do, consume only the information necessary for getting this one task done, nothing more.

You need to be focused in order to have clear judgment, and be able to decide whether some piece of information is mandatory or redundant. Self-control comes handy too … it’s quite easy to convince yourself that you really need something just because of poor self-control. Try to fight this temptation, and be as ruthless about it as possible – if the information is not matching your goals and plans, and you can’t take action on it in the near future then SKIP IT.

3. Minimal Effective Dose

There’s a thing called the MED – Minimal Effective Dose. I was first introduced to this idea by Tim Ferriss. In his book The 4-Hour Body,Tim illustrates the minimal effective dose by talking about medical drugs. Everybody knows that every pill has a MED, and after that specific dose no other positive effects occur, only some negative side effects if you overdose big.

Consuming information is somewhat similar. You need just a precise amount of it to help you to achieve your goals and put your plans into life. Everything more than that amount won’t improve your results any further. And if you try to consume too much of it, it will eventually stop you from taking any action altogether.

4. Don’t procrastinate by consuming more information

Probably one of the most common causes of consuming ridiculous amounts of information is the need to procrastinate. By reading yet another article we often feel that we are indeed working, and that we’re doing something good – we’re learning, which in result will make us a more complete and educated person.

This is just self-deception. The truth is we’re simply procrastinating. We don’t feel like doing what really needs to be done – the important stuff – so instead we find something else, and convince ourselves that “that thing” is equally important. Which is just not true.

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Don’t consume information just for the sake of it. It gets you nowhere.

In Closing

As you can see, information overload can be a real problem and it can have a sever impact on your productivity and overall performance. I know I have had my share of problems with it (and probably still have from time to time). But creating this simple set of rules helps me to fight it, and to keep my lizard brain from taking over. I hope it helps you too, especially as we head into a new year with a new chance at setting ourselves up for success.

Feel free to shoot me a comment below and share your own story of fighting information overload. What are you doing to keep it from sabotaging your life?

(Photo credit: Businessman with a Lot of Discarded Paper via Shutterstock)

Featured photo credit: Pexels via pexels.com

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