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Personal Finance 101: 8 Sure Steps Towards A Perfect Financial Freedom

Updated on February 2, 2015

Introducing the 8 Key Steps Towards Financial Freedom

After you read through these best steps towards financial freedom, go back to the drawing board and see what you are missing, then implement and soar high. Eagles do, you too can!
After you read through these best steps towards financial freedom, go back to the drawing board and see what you are missing, then implement and soar high. Eagles do, you too can!

“Financial freedom is available to those who learn about it and work for it.” - Robert Kiyosaki (Source: Brainy Quote)

The extent of your financial freedom is the measure of how much you can comfortably meet all your financial needs without actively working for them.

Chances are, your needs are endless since that is their nature, but having to live sustainably is different from struggling to meet your needs (and this guide is fighting to lift you out of such a struggle).

1. Outline your goals extensively

Create a perfect list of your goals in quest for financial freedom, but make sure the goals are realistic enough. Talking of perfect financial freedom means perfect goals too. In short, financial freedom is for the visionaries.
Create a perfect list of your goals in quest for financial freedom, but make sure the goals are realistic enough. Talking of perfect financial freedom means perfect goals too. In short, financial freedom is for the visionaries.

Mind Tools highlights a great deal of how you can successfully set realistic targets.

In particular, the finance section asks you to define the timeline and keep in mind that your financial and career goals should auger well.

Therefore, define what your goals are and how you are going to achieve them in detail. The reason being, you will be less distracted by other hassles that focus not on your goal.

In any case, keep those goals realistic and avoid being too ambitious (but still be, in a moderate way).

This may also be the perfect time to identify your weaknesses, like poor saving spirit or extravagance. Only buy what you need, or in future, you may be forced to sell what you need to pay for your misjudgments.

2. Do you have an Avenue? Find one and don’t forget the wagon should be there too!

Every financial goal relies on your effort to come to realization. If you have a rewarding career for example, that is an avenue. However, you need not to be limited to your career only for there are many ways to source finances.

Know your strengths and weaknesses before you embark on defining the avenue to take and the tools you will need on the way.

Jessica Hagy nailed it in her “20 ways to find your callingpost in 2012.

Whenever you are sure of what your calling is, go ahead and invest most of your time and energy in.

The truth is: you can only get innovative in an area you are most comfortable in.

That is what will take you to your financial freedom, but not just yet!

3. People to avoid

Avoid toxic people to perfect your journey towards financial freedom. Toxic people, as explained, will always fail you. This is a key step towards financial freedom!
Avoid toxic people to perfect your journey towards financial freedom. Toxic people, as explained, will always fail you. This is a key step towards financial freedom!

You might have come across teachers who always told some students they would never make it in life.

Those are negative people to stay far from when you have a great mission such as quest for financial freedom.

There are many types of people to avoid apart from such pessimists.

You should avoid these toxic people:

  • Negative people
  • Jealous friends
  • Greedy people
  • Arrogant individuals
  • Critics and more critics

If you ever get to solve a problem with a person, you can easily know their character from just how they comment about the whole problem, let alone how they commit to the search for a solution.

If you are interested in learning more about why you need to avoid such people, you can look at this link.

4. Who to stick around with

Successful people seldom create problems for you since they are most likely never jealous or envious of anything you do. In your journey towards financial freedom, be friends with successful people or those you have common goals with
Successful people seldom create problems for you since they are most likely never jealous or envious of anything you do. In your journey towards financial freedom, be friends with successful people or those you have common goals with

The obvious type of people to have around you in your journey towards financial freedom is the people with opposite traits from those in the list above.

These are positive-minded people with great achievements. There is no way to actually measure success apart from knowing what a person wants to achieve, how they work for it and whether they do realize that kind of a goal.

However, not just any successful person can inspire you. If you want financial freedom inspiration, look at people who have succeeded in this particular area, not just anywhere.

You will realize that the best of friends are people who succeed in life for such friends seldom get jealous. The point? You need to keep in mind that you are not superhuman and you may fall in the jealousy or envy trap. When that happens, know that you are too idle, get up and take action -- on the next step.

5. Take action, don’t just be on the move

Taking action is another way to say implement your plans considering your targets.

That should keep you busy enough to avoid any distractions along the way. You will also be sure all the activities you are undertaking are adding up, as you had already defined your targets and the avenue to take.

What does that mean? You were already in motion, but now, it is time to take action to make the motion pay back. Is that confusing?

You may want to read the difference between taking action and being in motion here (Lifehacker). That post in Lifehacker also goes ahead to give you the ideas on how to take action and choosing an action to take.

6. You did't take action? No excuse

This is your chance to take action! The earlier you achieve your financial freedom, the longer you enjoy your life. Remember this reduces depression and stress.
This is your chance to take action! The earlier you achieve your financial freedom, the longer you enjoy your life. Remember this reduces depression and stress.

Excuses are the best ways to detect procrastination and a certain compromise on your part.

If you want to avoid silly excuses of why you did not meet a certain savings’ target for example, why don’t you go ahead and identify the solution instead of finding a reason?

It is time to acknowledge every failure and look for a solution if at all you want to succeed, not only in financial freedom quest but also in your general lifestyle.

Spark” by John J. Ratey explains a detail of how exercise can be used to avoid procrastination and many other negative habits.

Since financial problems lead to such issues as depression, you may want to read “Spark” to start leading a stress free life after you understand how exercise helps you -- from a psychiatrist’s point of view.

7. Hey buddy, you did some shopping abroad last month? Your credit card requires your attention

You finally got some money? Debts are bad. Your credit card is hungry and you need to take action if at all you are to achieve a perfect financial freedom.
You finally got some money? Debts are bad. Your credit card is hungry and you need to take action if at all you are to achieve a perfect financial freedom.

Recurring debts can pull your legs when you want to take action. The first thing before you think of success should always be to settle all the owed money before you can sit comfortably in your success wagon.

This is where you should learn to shop smart as hinted before. To stress that point again, never buy what you don’t need.

You may be interested in knowing how to shop effectively online and I will be covering that in a few days but in the meantime, make sure you are close to the following questions to answer while shopping:

  • Are there any offers, like coupons, available?
  • Is that the lowest price available?
  • Which are the cheaper alternatives to these items if any?
  • Will you be able to pay for the items?
  • Does the seller offer after-sale services I might benefit from?

At the end, you should have an idea of what you are up against being well aware what fits you bill and what doesn’t.

8. The Ultimate Step!

If you trust in God, believe that everything will go as you have planned and always find time to ask Him to be your guide towards financial freedom.

Note:

I have a lot of passion is sharing what I find useful for you and achieve a great peace of mind when you finally get to have a good read. I do not promise any perfect answers for what you are looking for and thus I appreciate your contributions too. If you find it useful, feel free to share.

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