10 steps to your financial freedom

Financial freedom is the ability for you to spend the time you want on the things you really enjoy, and not have to turn up to work to simply pay your bills and expenses and surviving month to month.

1. Goals and vision

Setting clear goals and vision are the foundation for any achievement.

You would never set of upon a journey without having a clear idea of where you wish to end up, how you intend to get there, and when you would like to arrive. The same applies to your financial goals and vision.

You will need to be specific, clear and concise.

The first thing you will need to do is to make a list of your financial goals. If you get disrupted or lost along the way, you will then be able to navigation back on track to ensure you achieve your financial goals.

Everyone's financial goal and vision will be different, but may consist of some common aspects. You will need to sit down and make a list of your specific financial goals.

Your goals could include, earning more money, clearing your debts, saving up for a deposit on a home, or have enough money to retire early.

Your goals will help you stay focused on the key areas you will need to work upon to ensure you achieve your financial goals and vision.

1. Don't be a busy fool or procrastinate

Your most valuable asset is your time.

Make a timetable and list all the activities and ensure you stay on schedule.

Always put in time for rest, play, healthy eating, exercise and sleep.

2. Earning money

Earn as soon as you can.

Do jobs you enjoy or love and which pay well.

Learn skills or professions which will assist you to maximise your earning potential.

Choose a career which will help you earn to your full potential.

Earn a good salary, negotiate pay rises or change jobs as needed o increase you income.

Increase your income by looking at multiple income streams.

4. Budget / Automated Finances

Understand your income/expenditure by making a spreadsheet so you can see this clearly.

Live below your means so you are able to put money aside for you financial goals.

Don't upgrade phones, cars or equipment if it is not necessary.

Be disciplined in your spending, but in moderation so you budget for some luxuries too.

Understand what is a liability and what is an asset.

Budget for some luxuries and fun activities to ensure you can sustain your budget.

5. Spending Techniques

Avoid unnecessary fees (Banks, Credit Cards, Gym, Subscriptions).

Avoid purchases you cannot afford or lead to bad debts and liabilities.

Shop smarter by using discounts and vouchers for products and services you need.

mix designer and non designer items if you like some luxuries, but remain focused on your goals.

Eat out smarter by getting discounts, and only items you budgeted for. Ideally only things you can't make at home. Get tap water when at restaurants instead of the expensive drinks.

Cut out on costs like cigarettes, coffees or alcohol where possible.

If you really need to buy something, then seek ways to make the money to buy it.

6. Savings

Start saving direct from you bank account automatically so you don't touch this money.

Start saving as early on as you can.

Ensure you have money for emergencies, which could typically be 6 months of your expense cost.

You need to understand why you are saving, and stay on track for that.

Savings are needed for emergencies and for your investments ( You need to get this money to work for you eventually).

7. Debt Management

Bad debt is using debt to buy unnecessary products, services or items.

Get out of bad debt if you are already in it.

Good debt is debt that can or does generate you an income and/or capital growth.

8. Credit Score

Understand your credit score as you will need to ensure you can obtain good debt when needed.

Manage your credit score by keeping up with all repayments and clearing debts when possible.

9. Self Development

Invest in yourself by increasing your knowledge, skills, and experiences.

Constantly develop skills that can earn you extra income and put them to use to generate income.

10. Investing

Invest as early as possible, and from a young age.

Property is a good investment as it can generate you income and capital growth.

Invest in products or services you like and understand.

Increase you understanding of investments, risks and taxes.

Invest in stocks & shares and index tracking stocks, and understand the related risks.

Invest in a pension and develop an investment strategy to achieve you retirement goals.