I am not that type of person who values money to an extent that everything takes a back seat, including your health, relations, and happiness and much more. But money does dictate what you will eat, wear and even the education you provide for your kids among many other things. No matter how materialistic it sounds, let's be honest. Money does define the quality of life we live.

And for all of this to happen in a comfortable fashion you need to act smartly at a young age. Financial freedom is not only to make yourself able to make money without being physically involved but also to be mentally free of the worry to afford all your expenses comfortably. It is a state of mind where you are at peace because you have invested either your time or money sensibly. You are getting the reward of those efforts. Here are seven points to help you achieve financial freedom:  


Budgeting is not about being too stingy and holding on to money. It is a way to live your life in an orderly fashion with regards to your finances. Create a list of your income sources along with your expenses. This list gives you a hard copy of your financial moves. It will help you make smarter decisions in life. You will know where you need to cut down on your expenses. By seeing it all on a paper, your perspective on your spending habits will likely change. For instance, you might feel that that restaurant you went to last weekend was maybe not such a good idea. So, here you go, the first step!


Saving up for emergencies is a smart move. You never know what life holds for you. Prepare yourself for the future. The rule is to save at least 3-6 months of your living expenses. Even if you lose your job, to say it for the worst, you do not have to borrow money. When you face any emergency this seems like the best option at hand.

And to think positively. Even if emergencies do not happen, then also you are somehow working on your financial freedom. So keep going!

Modest Lifestyle

Develop a modest lifestyle. You do not need to spend too much on food, branded clothes or in the name of entertainment. I am not asking you to starve yourself but being wise about your expenditure will help you in achieving your long term goals. Focus more on your necessities and less on your desires. Desires have a way of creeping up your savings and eat them like a fungus so be careful.

Financial Plan

For one to survive in the long run, one must have a financial plan for the future. Many of the old folks I have come across are experiencing a decline in health. And statistics show that medical expenses increase as we age. Your income is also cut down in half. Plan it all so that you do not worry about it in your old age. And you don’t want to depend on your kids for your expenses, do you?  

Your financial plan should also work on improving your credit history. Work on paying off all your loans. Remove judgments on your financial record, if there are any. 

Pay Off Debts

If you have any debt waiting to be paid off, it’s high time that you pay them off. Eliminating this burden is a big reward in this journey of yours. First, you need to write down all the debts. Now it may seem impossible seeing them in this tangible form. But as soon as you can defeat this number, the better it is for you. After paying off the last cent, you can feel the freedom up close.

Smart Investments

You need to learn about investing money wisely. To invest smartly you need to have knowledge on the subject. Read books and improve your social circle so that you have friends who have the know-how of investment.

You can also start a new side business. For that, you just need to research well. Just put your mind to it and there are lots of options available. There are blogging, affiliate marketing and many other sources of passive income. Before deciding on what suits you best you must research first. The basic idea is to expand your current sources of income.  

Be Consistent

Consistency is the main component of this plan. Even if you pay off your debt now and then you go back to your old lifestyle, isn’t going to help you. Follow all these steps with regularity. Saving for some time so that your goal is achieved is not the right thing to do but be consistent and increase it with time.

You have to go through positives and negatives on this journey but do not lose hope. It does take a lot of discipline and hard work but believe me, they pay off well.



Published by Lavismichel Inkel