10 Financial Freedom Tips for Success: Hacks for Beginners
Many financial freedom tips and goals have been preached many times. They have been featured on various platforms. But the beginner is always left hanging with many questions. The learning process requires further reading. The many moving parts are discussed. Some aspects are quantitative, and others are non-financial. But both sides of the story are equally essential to the whole outcome.
Here, I dissect 10 important financial freedom tips, hacks and ideas. These will help the beginner get a broader perspective. The foundation would be laid for long-term investing into various asset classes.
1. Paying Yourself First
This is one of the most important virtues of all the financial freedom tips you can get. This has been stated in many self help and investing books for hundreds of years. Paying yourself means, you allocate a portion of your after-tax income to investment activities ahead of all other financial obligations. If you save 20% each month before settling any other expense, you will gravitate faster toward financial achievement ahead of the average person.
2. Investing in Your Health
Sometimes the best financial freedom tips, and investments are those that money cannot buy. When you prioritize your health, you’ll be healthier and live longer. You will compound wealth over time better than someone who ignored this rule. Place a premium on healthcare, healthy eating, fitness, massages, and occasional travel. This gives you a 360 degree health fix for your body, mind, and soul.
3. Planning for Retirement
Planning for retirement will set you off with goals and objectives. These should be both achievable and measurable. You can set your mind on early retirement. Then position your work and investments to take you there. Do basic calculations with an online investment calculator. These tools can help you determine how much you need to invest. These financial freedom tips foster early retirement.
4. Understanding the Difference between Investing and Speculation
This is an absolute game changer if you ask me. But for the financial illiterate, it can be hard to swallow. They believe in jumping onto any shinny object that screams buy me! They throw their hard earned money at risky assets for superficial returns.
Some of the risky ventures people speculate in are crypto, lottery tickets, and casinos. These are not investments. According to the classic definition of investing, Benjamin Graham states that investments must possess attribute for both downside protection and a fair upward potential. Therefore, put your money to use with durable assets such as stocks, ETFs, and bonds. These investment and financial freedom tips will help guard and protect your principal from a total loss.
5. Putting God First in Everything
This statute should have been number 1. Your confidence to grow your wealth over time will be aided by a higher power. You will be driven beyond your natural human limits. Putting God first also means, living a life of integrity. And it entails doing your work and duty to the highest levels. Put others first before your own interests. You will see the impact these spiritual financial freedom tips it will have on your ability to compound wealth.
6. Long-Term Thinking over Instant Gratification
In all things, a long-term perspective is better. This perspective is also true for finance and investing activities. The many shinny things in life that compete for our investment dollars should be checked. As we focus on compounding our wealth, we should also plan and save for the important things in life.
Falling into debt is a consequence of instant gratification for sure. Consider this as one of many wealth preservation financial freedom tips you will hear. Deliberately practicing procrastination before making a major purchase will help.
7. Investing Mentally and Physically in Yourself
To achieve personal financial success, our heart and soul must be in the right place also. We can build up our mental or money mindset with books that boost our financial literacy. Secondly we can set targets for the fitness levels we wish to attain. These mental and health based financial freedom tips are essential. We want to live long happy lives to enjoy the wealth we’re building in our nest eggs. A healthy mind and body will indeed make us feel richer.
8. Investing Money Consistently
Investing needs consistency in order to reap the hoped for results. Your investment plan would certainly contain cash deposit schedules. The money is sent to the investment company every month. This can be done automatically with very little intervention on your part.
An investment buying strategy such as Dollar-Cost Averaging (DCA) is a useful process for adding on to your holdings. By this, we are getting a fair cost price that is averaged over time. These cost saving financial freedom tips cannot be dispensed with. They really do add up.
9. Breaking Free from Your Addictions
There are many demons that bind a person. They can keep people from attaining their highest potential in life. The seats of these are their addictions. Addictions can either be in plain sight, or disguised as part of life. There has always been a strong correlation between addiction and failure.
To reach financial achievements with more certainty, we must rise above them. Some of these include: drinking, smoking, drugs, Netflix, TV, YouTube, video games, social media, and porn. Identifying and facing your own demon is one of many therapeutic financial freedom tips you’ll ever hear. They are simply habits that can be overcome through determination.
10. Financial Freedom Tips – Final Tip: Donating to Charity
Financial Independence and early retirement are achievable aspirations. If others have done it, then it’s possible for you too. Donating money along the way to your favorite charity can boost your confidence. It will strengthen your resolve even the more.
Donations to your church through tithing also work in the same manner. A 10% pledge goes out from your income to support the organization. This becomes a credit to your spiritual bank account if you ask me. One of the numerous financial freedom tips and mysteries. We’ll never fully understand these ideas until we trying them for ourselves.
A Few Parting Words
The bottom line is that financial freedom is an attainable destination. There are certainly many phases involved. Each person may have unique goals objectives. The call to practice a high level of consistency is underrated. While having a financial freedom goal amount is important, you should have a list of beautiful dreams.
The multi-million dollar destination goal is key. But the journey should also require a frequent stop-over at the banquet of life’s little pleasures. As long as we can do it within, or well below our means.
Share some of your financial freedom tips and hacks you’ve used. Are they still working for you today? Add a few in the comments below.
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