Unfiltered Advice to Someone Who Wants Financial Freedom
Financial freedom is a dream for many, but achieving it requires clarity, action, and a shift in mindset. A conversation inspires this article with a close friend, Lisa, who often expresses her desire for financial independence. However, her approach to this goal has been tinged with doubt and hesitation. In this piece, I’ll share my unfiltered advice to anyone aspiring to financial freedom, much like Lisa.
Clarity: Defining Financial Freedom
Before embarking on the journey to financial freedom, defining what that means for you is crucial. Financial freedom is a subjective concept—what it looks like for one person might be entirely different for another. For some, it’s about having enough to cover monthly bills without stress; for others, it might mean retiring early, debt-free, or accumulating enough wealth to make work optional.
For instance, at one point, financial freedom for me meant eliminating all my debt. As I progressed, my definition evolved into having enough investments to cover all my expenses, so work became a choice rather than a necessity. Defining your goal gives you a clear target to aim for, and once you have that, you can begin to take the necessary steps to achieve it.
Expanding Your Mental Box
Many people fail to achieve financial freedom because it exists outside their “mental box”—the limitations they place on themselves about what is possible. We often inherit these boxes from our families or environments, but as adults, we can expand them.
For example, if you grew up in a family where living paycheck to paycheck was the norm, it’s easy to assume that’s your fate. But you can break free from these inherited beliefs. The first step is recognizing that your box limits your potential. Financial freedom requires expanding that box to include the possibility that you can achieve it.
Investing in Yourself
One of the most important investments you can make on your journey to financial freedom is in yourself. This includes education, personal development, and seeking out new information that can help you grow. Reading books, attending seminars, and learning from mentors are all ways to expand your knowledge and mindset.
When I started my journey, I read every classic money book I could find—books like Think and Grow Rich by Napoleon Hill and Rich Dad Poor Dad by Robert Kiyosaki. These books opened my eyes to the possibilities beyond my immediate surroundings and helped me expand my box. Today, with the internet, access to this kind of information is easier than ever.
Making Financial Freedom a Priority
Achieving financial freedom requires prioritization. If you find yourself making excuses—like not having enough time or energy to focus on building wealth—then financial freedom may not truly be a priority for you. It’s empowering to acknowledge this because it puts you in the driver’s seat. If you decide that financial freedom is indeed a top priority, you’ll start making time and taking actions that align with that goal.
When I was in debt and living paycheck to paycheck, I often blamed my financial situation on not earning enough. But once I made getting out of debt my top priority, I found ways to cut expenses and pay off my debt. It wasn’t easy, but the key was making that shift in priorities.
Avoiding Comparison
Comparison is a trap that can derail your progress towards financial freedom. In the age of social media, it’s easy to compare yourself to others and feel like you’re falling behind. But remember, everyone’s journey is different. Some people may have advantages you don’t know about, like financial support from family, or they might be financing their lifestyle with debt. Focus on your own path and avoid the temptation to compare.
The Four Pillars of Financial Freedom
- Earning: The first step towards financial freedom is earning enough to cover your needs and have a surplus to save and invest. Identify your “cash cow”—this could be a high-paying job or a profitable business. If you’re not earning enough, consider developing higher-income skills or switching industries.
- Saving: It’s essential to save a portion of what you earn. The simplest way to do this is by setting up an automatic transfer from your checking account to a savings or investment account. This ensures you’re consistently saving without having to think about it.
- Investing: This is where your money starts working for you. Invest in reliable assets like real estate or the stock market, which have proven track records of growing wealth over time. Avoid speculative investments like cryptocurrencies or day trading unless you’re fully aware of the risks.
- Spending: Learn to spend wisely. This doesn’t mean depriving yourself but finding a balance between enjoying life and not overspending. Good financial habits involve spending in a way that aligns with your long-term goals.
Final Thoughts
Financial freedom is attainable, but it requires clarity, the right mindset, and consistent action. By expanding your mental box, investing in yourself, making financial freedom a priority, and focusing on the four pillars—earning, saving, investing, and spending—you can set yourself on a path to financial independence. Remember, the journey is unique to each person, so stay focused on your own goals and avoid the distractions of comparison.