The term “financial freedom” is quite a hot one. We've heard it before a million times, but many choose to ignore it because they think it's completely unattainable.
Let's unpack this shall we?
Instead of assuming “financial freedom” means being super rich or elite and writing it off completely, it's time to shift that mindset.
The topic of personal finance can be a very personal one. Defining what financial freedom means to you is even more personal. There is no one size fits all definition.
Here's the first step: Throwing out what you THINK financial freedom is, and creating your own definition of it that fits you and your goals in life.
Manifesting What You Want
One of the most important things to do when working towards your definition of financial freedom is believing it is possible. Manifestation is simply a goal fulfillment technique that involves visualization and positive thinking.
So how does this come into play when we are discussing financial freedom?
If you aren’t able to visualize what financial freedom is for you there will be no way for you to achieve it!
Taking time to visualize what you want your future to look and feel like is a great first step. Don’t necessarily worry about the “how” right now, simply worry about the “what” and “why”, that’s manifestation!
It can be a huge roadblock to not allow yourself to explore ideas and goals that seem out of reach to you now.
Don't skip this important step because it leads you to your definition of financial freedom.
Maybe it's having a certain amount of money, or paying off your house by the time you retire. Perhaps it's being invested in certain assets that generate income.
Let the ideas and the wants flow into your mind and down onto paper so that you can see it. It doesn't matter how crazy big they are, because don't worry, the “measurable” stuff comes next.
Set Measurable Metrics
You have allowed yourself to dream a bit and have a clear picture of what financial freedom is to you.
Now, onto the next step of setting measurable goal metrics that you will work towards. That way you know, with confidence, you are on the right track.
For instance, if one of your goals towards financial freedom is paying off your $5,000 credit card debt, then setting measurable goals will help get you there. Here's what it could look like:
Main Goal: Pay off 5k in debt by January 2020 (2 years).
Sub Goal: Pay $200 extra towards my debt payment each month.
This way if you don’t have an additional $200.00 per month you know you need to create another sub-goal to make that amount of money on the side.
Sub Goal Action Steps ($200 a month towards debt):
- Forego food delivery to save on extra expenses (cook at home)
- Try a wine night in with girlfriends instead of going out once a week
Commit to Achievement:
Sometimes it can be hard to stay focused on long term goals since we don’t see the immediate reward.
Commitment and patience is a huge part of the process when it comes to financial freedom of any kind.
If you keep looking too short term, you may get frustrated and say “screw it”!
You have to know that small steps lead to huge progress that you can look back on and be proud of.
Shiny things, like vacations, new cars, and frivolous spending can come along and derail our long term financial goals. Protect yourself against these things with a commitment to the long term goal.
So define what financial freedom is to you, what you want to achieve most, and commit to it!