5 steps to be financially free and do not wait decades to retire

This topic has given a lot to think, all at some time in our lives we come to a time when we must think about what we want and what we can do to be financially free, comfortable and safe.

But what is financial freedom, and how is it related to our life plan? As an entrepreneur it is one more aspect that you should consider, since having a lot of money gives you wealth, which is measured with a greater number of zeros in our account. Economic freedom is achieved when our income is greater than our expenses.

It is common that we confuse the true meaning of financial freedom, continue reading and find out everything you need to know about the subject.



What is financial freedom?

It is understood as the ability to live free from worries in the monetary or money sense, some simply define it as the time you could live if you stop working.

For this reason, experts consider that it is directly related to the economic well-being we achieve.

In more clear words, we obtain financial freedom when we can cover our economic needs without having to do some kind of activity, so financial freedom is measured according to the free time we have, but not in the amount of our income. If we are able to cover our needs with more free time, we understand that we have broad financial freedom.




Steps to be financially free

1- Life plan

It relates a detailed analysis of how you want your life to be, when it is clear to you that you want to make the fight easier to do.

Simplify and facilitate your life, focus on what matters most to you, with this you not only avoid wasting money, but you focus on your goals and objectives.

On the other hand, you must be very positive and always think that you are able to achieve what you propose, and then strive to achieve your dreams; turn them into goals. Cancel the limitations related to success and money.


2- Save

It is an important element, because it will serve you in the different steps you are taking to get closer to financial freedom. Control your expenses, it is important since this control partly depends on the savings, the more money you spend to live, the harder it is for you to reach financial freedom.

Avoid indebtedness, debts are the opposite of saving and financial freedom. In the case that you acquire debts, try to be as low as possible, that you can pay easily and as soon as possible.




3- Search to perfect yourself

Extend your income, never achieve financial freedom while you depend on a job, always try to do your job well, so that your income increases by bonuses or get a better position, but do not forget that it is to achieve higher income without spending more time. Avoid getting stuck in a job.



4- Avoid being dazzled

Maintain your standard of living, although your income increases, it is very common for people to make the mistake of increasing their standard of living in the proportion that their income has increased. Usually people as they progress in their career and are earning more money, they are increasing their standard of living, but sometimes even the increase is excessive and end up in debt.

Invest your money with conscience, your money needs to multiply and if you do not invest as a result of inflation, each year your money will be worth less.




5- Generate passive income

Passive income is what you get consistently after having made your initial investment, without doing anything else.

For this you must have assets, and then you can live on the fruits of those assets, for example, buy a real or personal property to be rented, participate as a partner contributing capital to a company and you will have rights to a proportion of the benefits, create or invent something that will generate royalties for copyright, among others.

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