Financial Freedom for me is a freedom from money worries. This can be elusive simply because we are bombarded with images and adverts that fuel our desire to want more and yet our income or finances invariable does not keep up with our wants. So we spend more than we earn and then get into debt.
A good financial plan is a road map that shows exactly how the choices we make today will affect our future – Alexa Von Tobel
Most of us will always have a limited money supply and so we must curb our appetite for spending.
In Taking Control of Money, we learn step by step how to establish financial freedom and how to ultimately create wealth – two valuable tools for you.
For me financial freedom is a journey. I still have money worries so I am not there yet. I am on the road and its a beautiful road to travel.
Let me give you what I consider to be some benefits of financial freedom.
1. Freedom From Debt
Imagine a life without debt. No credit card loans to pay, no mortgagees outstanding, all your income goes to growing your cash reserve and investments. I hear you saying such a world does not exist. Yes it does. To get there you simply have to learn to spend less than you earn.
2. Freedom to Increase your savings
I was asked the question, why save when you will only get a little interest on your savings? Here is my answer.
Savings is a natural thing that occurs when you spend less than you have. To put it in simply if your income exceeds your spending, you will have cash which you can then do with as you please. You save to build a healthy cash reserve and you save to have the money to take advantage of investment opportunities that may come your way. For example having the necessary deposit for a mortgage.
3. Freedom to do what you want
When you are not at the mercy of creditors, you can do a lot. For example, you can start your own business, move to another city or country or make other big decisions without worrying about paying your debt.
4. Freedom from Financial Stress
Without debt, you can avoid the physical and mental impact of financial stress.
5. Freedom to start creating wealth
Ultimately, wealth creation is what will give you financial freedom. But you can only create wealth if you have a positive cash flow to enable you take the steps. Wealth creation involves risk so you must seek advice from qualified professionals before deciding to put your hard earned money in some investment.