Financial freedom can give you time, money, and peace of mind (and much more). If you want to be financially independent, you should know what steps to take because this will help guide you in the right direction!
The three main steps that will help guide you in the right direction are: setting a goal to be financially independent {Økonomisk uavhengig}; prioritizing your savings rate; and knowing how much money is enough. Let’s take a look at each of these steps in more detail!
When it comes to setting a goal, you should ensure that your goals are specific and measurable. This will help ensure that you’re on the right track to achieving financial independence as all your money decisions can be guided by this one main goal (or set of smaller goals). It would help if you also had a time frame for your purpose. It’s best to think long-term, but you should still set a realistic timeframe that you can work towards!
Prioritizing your savings rate is all about ensuring that the money coming in covers everything going out, so there’s always surplus funds available at the end of each month (or pay period). The best way to prioritize your savings rate is to ensure that the money you pay off debts and spend on necessities always takes priority.
Finally, it can be tricky to know how much money is enough as it depends on what you want from life! If there’s a specific figure in mind, then work backward. Think about all of your outgoings (such as mortgage/rent, bills, and food), then try to determine how much money you need each month (or year) to afford these. If your income is higher than this amount, then congratulations; you’re financially independent!
In conclusion, financial independence is a great goal to have, and if you follow the three steps mentioned in this blog post, it’s achievable!
