8 ways to achieve financial freedom faster

Have you ever thought about what financial freedom means to you? Maybe it means being able to travel when you feel like it, owning a house or simply living comfortably without having to worry about paying off debts. Everyone has a different interpretation, but in the end, it all comes down to having the freedom to live the life you want. But how do you achieve it? We came up with a list of 8 tips to help you achieve financial freedom.

1. Learn to manage your money

An important aspect of becoming financially independent is learning to manage your money. This includes creating monthly budgets, tracking your spendings, and saving some money every month. Nowadays, there are many apps that can help you with this so make sure to use technology to your advantage. Even if you cannot save an enormous amount, you could start saving by putting aside some cents every day. Over a long period, this will start to make a clear difference. For those who are able to put aside a bigger amount, you could start saving a certain % of your income each month. Once you feel comfortable with it and it feels effortless you can gradually continue increasing this % until you are satisfied with your savings.

2. Choose the right lifestyle

It is very important to reflect on what kind of lifestyle you are currently living versus the lifestyle you want to live. Trying to live below your means will help you achieve faster financial freedom. This might seem hard but there are many ways to do it. You do not necessarily have to give up things, but rather replace them with other alternatives. Here are some tips to help you adopt a more economical lifestyle:

1. Think twice before you buy anything. Impulsive buying often leads to non-essential purchases that you later on end up regretting. That’s why you should ask yourself each time: do I really need this? If you are not convinced, this is probably a sign you should wait a bit longer before reconsidering your potential purchase.

2. Do your research before buying anything of significant value. Compare different products to find the best offer regarding the price and quality.

3. Use discounts whenever possible. Even if small discounts might seem insignificant in the moment, when all these discounts add up over time they can together make a big difference.

4. Buy second-hand instead of new if you feel comfortable with it. This is a win-win situation, as it not only helps you decrease spendings but at the same time helps our planet too.

5. Take care of your belongings so they will have a longer life. You will need to spend less money on replacing a product because you lost or broke it.

6. Borrowing from others instead of buying is also a great way to save money that simultaneously reduces your ecological footprint a bit.

7. Sharing is another trend that can help you live a more economical lifestyle. An example of this is using a car-sharing platform instead of buying a car.

8. Do-it-yourself (DIY) not only can be a fun activity but also will be cheaper than buying a finished product.

9. Buy experiences instead of things. Experiences tend to be much more valuable than physical things and will last a lifetime through your memories.

3. Adopt good habits

Adopting the right habits will help you on your journey to financial freedom. One essential habit to adopt is setting goals. Only once you know which specific life goals you want to achieve and by when you want to achieve them, can you start setting up a plan with actions you need to take for it to happen. Another good habit is learning every day. By doing this you will discover new information, learn new skills, be inspired, and find new ways to help you reach your goals. There are many other habits that could benefit you greatly, but the effectiveness of them will vary from person to person. It truly is a personal journey, in which you need to find out what works best for you. To rewire your brain to adopt these new habits, you will have to go through a lot of practice and repetition but it definitely is a game-changer.

4. Positive and effective mindset

Having the right mindset can change everything. Learning how to control your thoughts and mindset truly is such an important and powerful skill that can turn your entire life around. It can make or break your dreams. Achieving your dreams all starts with believing you deserve for them to come true, and ultimately believing in yourself. If you start thinking more positively, you will get more positive results. The law of attraction is a real thing and you should take it seriously. There are many stories out there supporting the power of positivity. A simple way to start is by eliminating any limiting beliefs about money and adopting a more positive outlook on your financial situation. This will make it easier for you to start envisioning your dreams come true, which again brings you a step closer to that positive mindset. Being disciplined is the last key mindset we would highly recommend. If you set specific rules for yourself and adhere to them you will be able to manage your personal finance much more effectively.

5. Review, analyze and improve

It is essential to review your lifestyle and expenses on a regular basis. Only by looking back critically at your actions and analyzing everything, you can start improving and continue evolving in the right direction. Going through this process will continuously make you aware of your actions and give you a sense of where you are at compared to where you want to be.

6. Career

Making the right and smart decisions when it comes to your career will impact your journey to financial freedom too. Ideally, you should try to find a job that you love while at the same time receiving a reasonable salary. In reality, it might take a while before you find your dream job or dream salary. In case you are not there yet, make sure your company can offer you growth opportunities to help you get where you want to be in the future. In the meantime, a temporary solution could be getting a side job to get the extra income you need, while spending your remaining free time investing in yourself. If you believe you are underqualified for your dream job, you should dedicate yourself to online courses, reading books, and acquiring the necessary skills. Only this way you will slowly become more confident in your abilities, start to believe in yourself, and believe that you can get that dream job if you set your mind to it. Believing is the key to achieving success.

7. Create a safety net

Creating a safety net can never hurt. This means prioritizing your debt before anything, making sure you are covered by insurance, and building an emergency fund. If you know you have a backup plan in case things do not turn out as planned, you will be able to deal with the situation in a better manner. Having this emergency fund could be a lifesaver in case unexpected events such as an illness or losing your job happen.

8. Create a passive revenue stream

We need to remain creative when it comes to ways of making money. An example of this is creating a passive revenue stream. Investing is the most common one that we recommend starting whenever you feel ready and comfortable with it. Having an active revenue stream while simultaneously investing a part of that to establish a passive revenue stream is what we call smart thinking. Do make sure to inform yourself well enough if you are new to this so you do not end up taking bigger risks than expected. A good way to start investing is through mobile apps that allow you to invest in diversified portfolios, such as the Beewise app.