Financial worries have long been seen to be a cause of stress. Thus, achieving financial freedom is often regarded as something that is highly desirable to many – if not all of us. Being financially free should mean that financial worries are a thing of the past, leaving you with the ability to live your life how you want. Yet what exactly is financial freedom? And how exactly can you achieve it?
Here, we look to answer those questions and highlight how trading in financial instruments and using the best stock trading platform software can help you get there.
What is Financial Freedom?
Answering what financial freedom is, is always dependent on the person. There is no one correct answer. For many, financial freedom would mean not having to work anymore – but it can (and should) be so much more than that. It will depend entirely upon a person’s situation and circumstances too. For, some multi-millionaires will argue that they do not have financial freedom, while some that earn closer to the national average may say they have achieved, or are close to achieving, financial freedom.
That could well be because such people believe that financial freedom does not come from being able to quit their job and sail off into the sunset. Instead, to some, it will mean being only reliant on themselves for money – and no one else. That can be quite key for many young professionals who are leaving home and starting out on the jobs ladder. It can be particularly important to achieve for many women while the world still grapples with gender inequality and gender pay gaps.
Financial freedom can also mean, to some, being able to buy what they want when they want. Of course, that in itself is subjective as some people may want to buy only the most luxurious items as and when they choose. To others, financial freedom is more about being able to buy the basics without having to worry or do without.
Being free of debt is also an important notion to many who want financial freedom while some simply want to know they have a certain level of income flowing to their bank accounts each month. Finally, financial freedom may also mean having the ability to walk away from a job or relationship without having to fear where the next few months’ or years’ meal is coming from. Follow my blog Journals Report to get the latest updates.
How to Achieve Financial Freedom?
Set a Goal
Setting a goal is one of the best ways you can achieve financial freedom as it gives you an endpoint. It could be that once you have reached it, you make yourself another one, but by setting a target, you are far more likely to take the steps to reach it. It makes financial freedom a more tangible concept as opposed to an abstract idea. Setting a goal should also help you realise how best to work towards it. It could be that you start looking for the best brokerage accounts and increasing the amount you have invested there that can help you work towards financial freedom. Or, it could be that you continue to take professional exams to help bolster your qualifications to aid your chances of promotion.
Perhaps one of the best ways to help achieve financial freedom is to start investing regularly and trading in financial instruments. By using one of the best stock trading platform accounts or best brokerage accounts possible, you will be able to give yourself the best possible tools available to help support your quest to grow your wealth through investing. Trading financial instruments like stocks, bonds and currencies, gives you access to returns that simply spending all your income cannot achieve. For example, the stock market has historically returned 10% every year since its inception.
Save When You Get Paid
Saving (and then investing some of those savings) as soon as you get paid is another quick and easy way to help achieve financial freedom or security. It is like paying yourself and making your future self a priority. Taking money out of your pay packet before you can spend it has long been seen to be a highly successful way of building an emergency fund, any retirement savings and other investments.
Making, and sticking to, a budget is another way you can help achieve financial freedom and hit that goal you have set for yourself to hit. By budgeting, you keep yourself on the straight and narrow and should find that you are able to make your paycheque stretch from payday to payday – even at the beginning of a career when your salary is usually lower.
Pay Down Debt
Finally, paying down debt is hugely important when trying to achieve financial security or freedom. There are two reasons for this. Firstly, debt can be expensive. The interest rates on debt are often more than savings accounts offer and some bonds. They may not be more than some returns on certain investments, but that cannot be relied upon. There may be days or months that the returns on your investments are lower than the debt repayment charges on any debts you have built up. Secondly, by having to pay interest for longer on debt you own, that is less money that you can invest into some of the best brokerage accounts around to build up your retirement nest egg or your emergency fund. Paying down debt as soon as possible means you have less financial responsibilities in the future.
Achieving Financial Freedom
Achieving financial freedom may be a privilege but that does not have to be a privilege reserved for a lucky few. Just a little financial planning can go a long way to help you meet your financial goals. Doing so will mean you have the freedom to make the decisions you want to make with a whole host of options available to you as opposed to just a paltry few.