Finance

What Is Financial Freedom And How To Achieve It

If you want to set out on your journey towards financial freedom but need a little push to get started. We go over what being financially independent really means, what financial freedom can offer a BossGirl like you.

9 min read

Picture this: you’re sipping your iced coffee under the sun in the garden of the home you’ve just bought, browsing the internet on the laptop you gifted yourself for your birthday while booking your next beach holidays.

Does it sound like a dream? This may sound like a fairytale, but it’s something called financial freedom and it can become your reality, BossGirl!

For me, financial freedom is all about being in control of your entire life. Think about it, if you don’t have to worry about your financial situation or about living paycheck to paycheck, you can make decisions about your lifestyle, your business, and your free time without thinking twice about the money.

You can consider yourself financially independent when you aren’t dragged down by debts, and you have enough savings in the bank and cash in your pocket to pay for the lifestyle you want. It also means that if something unexpected happens, you’ll have a safety net to catch you (link post about emergency fund).

And that’s not all. If you don’t have to worry about making it to the next month, you can leave that job you have that pays well to instead build a career that you truly love. Being able to follow your calling (link to post on calling) stress-free sounds like a plan, doesn’t it?

Can I achieve financial freedom before my 30s?

Only about 24% of people under the age of 22 have achieved some level of financial independence. We have inherited a labour market where it’s becoming harder to climb the corporate ladder, and towering inflation that makes buying a house a feat as risky as going scuba diving in the Bermuda Triangle. But, yeah, it’s probably millennials' fault because we spend our incomes on avocado toast.

Now, in all seriousness, overcoming your struggles with money and getting a taste of that sweet, sweet financial freedom isn’t easy, but it’s possible and you can do it without neglecting your needs and your wants.

The way towards financial freedom is a staircase that can bring you to different levels, from paying off your student loans to being able to afford your first property to become the next Kylie Jenner. That’s why every step you take is a huge accomplishment you have to celebrate. Here, let’s toast to you for going debt-free, buying your first car, or negotiating the raise you deserved.

That being said, financial freedom can’t be achieved from one paycheck to the next. This journey that you’re about to go on will take time, and you’ll need to make a few sacrifices and change the way you see the money. When you reach your goal and find yourself living the life you always dreamt of, you’ll see that all those changes were worth it.

There are 3 keys to achieving financial freedom

I can give you my top tips on how to achieve financial freedom, but I have something better than a mere list of hacks. The truth is that the foundation of any success story can be summarized in these three words: goals, plans, and habits.

Set your goals

You need to make your financial freedom a priority to make sure you don’t get out of track. And you should also set a specific goal, an amount of money that would make you achieve your financial stability.

The beautiful thing about your journey to financial freedom is that saving up and having to say no to splurging on certain things doesn’t mean that you’re giving upon them. No, it just means that you’re a Rockstar at setting priorities and making temporary sacrifices.

There’s a Netflix show called Marriage or Mortgage – 10/10 if your guilty pleasure is some good old reality TV. Its whole idea is to help couples who want to get married and buy property choose between using their savings to pay for a wedding or for a down payment.

A few years down the line, the ones getting married will probably save up enough to buy a home, and the ones buying a property might choose to get married in a smaller ceremony. So they’re not really giving up what they want, they’re just prioritizing and readjusting.

Having your financial freedom as a goal will look very similar. You might postpone for a couple of years, on things like living in the city you love because of the high rental prices while you save money, make sure your finances become stable, and then use part of your savings for the down payment of your dream home.

Follow a plan

Create your strategy and look for help if necessary. You need to study your current income, look at your savings and think about your options.

One of the best ways to build and maintain wealth is investing, so think about it as an option. Can you afford to invest with your current salary and expenses? Can you afford to make high-risk investments or do you prefer going long-term and low risk?

You can also do the math to figure out if you need an additional source of income, like a side hustle, or maybe negotiating a raise.

Last but not least: set a deadline. This will help you create a realistic plan and stick to it. My advice is to create a plan that doesn’t extend too much into the future (not more than 5 years) or that is too short (less than 1 year) because otherwise you’ll either drift away from your main goal or get frustrated for not being to achieve it in record time.

Create habits

You’ll have to shake up your habits so that your lifestyle doesn’t become an obstacle in your journey towards financial freedom.

Trust me, even the little things can have a huge impact on your budget. Did you know that you can save up to £ 154 a month by having your cup of coffee at home instead of getting a takeaway?

We all have toxic habits our wallets hate, like making takeout our go-to dinner, having more subscriber services than we need (Amazon Prime, streaming services,…), or seeing shopping as a hobby.

Some of the most successful self-made CEOs have money habits that may seem strange such as avoiding trends or making the most of the things they buy. And we ask ourselves why do they behave like this if they have lots of money to spare, but always remember that no one ever becomes a millionaire by overspending – and the same goes for achieving financial freedom.

The moment you decide to start this journey, you’ll need to make sacrifices and put lots of energy into it. You won’t get there overnight and there’ll be moments when you’ll feel you’re giving up too much and not seeing results. Whenever you feel like this, you need to remind yourself the reason why you started and keep at it – in 20 years you’ll thank yourself for staying on track!

Achieving financial freedom will give you more than stability: you’ll have more liberty to choose a fulfilling career you love, you’ll be able to start or scale your dream business without risking too much, and you’ll have the choice to adopt the lifestyle you want. If you follow the tips you’ve just learned and stick to your plan, you have a bright future ahead.

So are you ready to fight for your financial freedom, BossGirl?

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I hope you have an amazing and productive day.

Go on girl, do your thing and be the boss. X