The Ultimate Guide to Achieving Financial Freedom

by Post Author

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Introduction

If you follow the steps outlined in this article, you will improve your financial situation. The article gives you use the proven steps so that you take control.
Every month, you are going to use your money for something specific. You are going to increase your income. And you are going to put your money to work. This is what I have done and continue to do to reach my financial goals. It works and it’s simple.

A couple of points before we begin:

  • First, if you only read this article, your finances will not get better. The only way to do it is by taking action. Learn financial skills by doing it in the real world. 
  • Second, like all skills it will take a bit of practice before you get it right… and even then, there can be unexpected events to throw you off the path. Stay strong and remember your goals.
  • Finally, you will not remember everything you read here today. So, come back and read it repeatedly.
  • Believe in yourself and start now. Take action. Follow the steps and start to improve your finances.

What are the Steps and Why Bother

The 4 Steps

There are four steps to go through.

1. Assess Current Finances

This step helps with setting realistic financial goals. The assessment compares the current income to expenses, looks at what savings you have, do you have additional income streams, do you invest? From there its possible to set the plan for the future.

2. Financial Goals

To be financially free, you must know what you want and have a plan to get it.

3. Plan of Actions

Developing your financial plan, will guide you each step and help you with the decisions that must be made a long way. Stick to your plan will allow you to do things that you want to do. The plan will have cover 4 topics and will vary depending on your financial situation at the time you make it

  • Spending – Have detailed budget for monthly and annual expense.
  • Debt – Get rid of it and don’t take on anymore.
  • Income – Grow it; Lear what you need to get promoted and/or generate additional income to the day job.
  • Investing – Stocks, bonds, property, wine,…. keep passively growing your net worth, protect it from inflation .

4. Actions

Spend some money on things and experiences that will bring happiness to you and your loved ones.

“Discipline Equals Freedom

Jocko Willink, Lieutenant Commander, US Navy SEAL (retd)

Lets Get Started


The Stages

The Stages of Financial Freedom are a rough guide to help you determine the the best actions for you. Not everyone follows the same path along the stages, some people go directly to stage 2 or 3 after they start working. Others may jump from stage 1 to 3 or even 4.

There are no solid lines between the stages; you may be between stages for a while. Use the stages as a guide to help you set your goals and identify what areas of your finances can be improved. At the time of writing this, I am between stage 3 and 4. You can see my financial progress in the monthly net worth reports here.

Being Successful

The path followed by other people is not important. Your path, and your actions are priority. You cannot control the world around you, but you can partially influence it; and you can control yourself. If you have a partner or spouse, you must work together. You must agree.  Establish a plan and be focused. Make this a priority. You can achieve success.

The actions for each stage and the goals that you set are discussed late

Step 1: Assessment

The first step is to make a detailed review of your financial situation. Having full view of the picture help you to plan and develop realistic goals. Look, if your savings account is $3 and debt is a heavy burden, then it is pointless to open an investment account and plan monthly investing goals.

Step 2: Goals

, while having the aim of ultimately getting to stage 5 or stage 6, need be more specific to where you are now.

Goal setting is vital because it helps you decide and focus on what’s really important. Having properly written goals will keep you motivated, and will help you to acieve them.

The goals should be more than moving to the next level, or “having more money”.

Step 3: Action Plan

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Step 3.1: Spening Plan

Step 3.2: Getting Rid of Dirty Disgusting Debt

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Step 3.3; Increasing Your Income

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Step 3.4: Investing to Grow your Wealth

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4 comments

user 30 August 2020 - 09:11

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user 30 August 2020 - 09:15

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user 30 August 2020 - 18:08

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Eoin_ 30 August 2020 - 09:16

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