Start living your best financial life with these financially savvy tips…
Do you ever ponder your financial future?
You know, that far-off day when you can finally spend less time at work, and more time with your family or friends…or maybe even follow your passion projects?
With some smart forward planning those halcyon days of living financially free could be closer than you think. Today we’re exploring three proven steps that’ll speed up your journey toward financial freedom, including:
Work out what living financially free means to you
Live minimalistically and start spending less
Make money while you sleep and increase your earnings
Let’s get started…
1. Work out what living financially free means to you
Before you can achieve financial freedom, you need to work out what that looks like to you.
The thing is, financial freedom means different things to different New Zealanders. Usually, you’ll find it’s more about freedom of time rather than wealth.
Ask a handful of Kiwis and you might hear them say:
Not living payday to payday.
Spending their time however they choose.
Not working at all (before or after 65 years old).
Working part-time and being able to spend the rest of their time on passion projects or hobbies.
Not being forced into a job they hate, just so they can pay the bills.
Not having to worry about a roof over their head, repaying loans, or paying basic bills like visiting the dentist.
Being debt-free and living within their means.
Having savings or investments so they have flexibility to stop work, or go on a long holiday.
So…what does financial freedom look and feel like to you?
Many people aiming for financial freedom choose a ‘freedom figure’ as a goal. This is the sum needed that, when invested, generates enough income to live on. Calculating this figure is a useful exercise to get you thinking about the future, and what compromises you may have to make.
Now you know what your end goal is, take stock of your current financial situation and start making a plan to close the gap. These steps include:
Spending less.
Earning more.
Investing the surplus.
2. Live minimalistically and start spending less
Review your expenses
Have you analysed your outgoings lately?
It’s surprising how, over time, many Kiwis allow small unnecessary expenses to become part of everyday life; another subscription, a fancier food, a designer bag.
These incremental expenses can quickly accumulate, so check your bank statement for any unessential extras and put an end to those unnecessary recurring payments.
Live off the smell of an oily rag
Do you want to reach financial freedom in a shorter time frame?
Then consider reducing your outgoings to the absolute minimum.
Living this frugal lifestyle doesn’t have to be hard. In fact, thrifty living can be turned into a fun challenge for the whole family, including challenges like reducing waste and recycling.
If you need more help, there are lots of resources available online to ‘live off the smell of an oily rag’ full of simple money-saving ideas for every area of your life.
