How to reach Financial Freedom: five principles.

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What is Financial Freedom?

It is your liberation from Wage slavery , a situation in which a person's livelihood depends on wages or a salary, especially when the dependence is total and immediate.

In other words, Financial Freedom ( aka Financial Independence), is a condition that you reach when you have enough money and investments to afford the kind of life you want for yourself and your family.

To reach this condition you must have a constant increase of your savings and investments that allow you to retire if and when you want, or do a job you really desire to do, even for a low or no wage.

When you reach Financial freedom, you can stop to work to make money, because your money is working hard for you.

If your money works for you even when you sleep and makes more money day by day, you are on the highway to financial freedom!

When I can reach Financial Freedom?

It is a matter of Shockingly Simple Math.

To reach Financial Freedom you have to reach a number: this number is your passport to Freedom.

How to calculate this number?

To make it simple, calculate your total annual expenses and multiply that number by 25.

This is the amount of money needed to achieve financial freedom.

If your annual expenses are $40,000, multiply that by 25 to see you financial freedom number. In this case It is $1,000,000.

If your annual expenses are $ 10.000, then it is $ 250.000.

Here some great calculators:

Early Retirement Calculator - Networthify.com

What if your Financial Freedom number is too high?

It simply means that there is something wrong with your lifestyle.

You should realize that the problem is urgent and cannot be further postponed.

You have to seriously ask yourself some important questions.

The problem can be posed in these terms: you are spending too much or you are wasting your time, life and energy for a job that gives you a low income.

There are only two options.

a) reduce your expenses.

b) increase your income.

This is up to you and your intelligence.

Consider this simple principles that underlies any planning for your future financial freedom and repeat it yourself as a mantra:

"1 ) Earn more than you spend.

2) Invest the surplus.

3) Avoid debt"

This principles will let you reach this objective. It won't be an unbridled race to get rich quickly, but a slow journey where you can enjoy the view, being careful of the holes and obstacles you will encounter.

Financial freedom does not mean that you are "free" from your responsibilities to manage your money well.

Totally the opposite.

It is a complete control over your finances and your life, and it requires sacrifices, time and hard work.

But don't worry, one day you will be amply rewarded for all this.

What you need to do, first of all, is to establish life goals, both large and small, monetary and lifestyle.

Next you need to create a plan for achieving these goals.

The achievement of your goals must necessarily take into account the principles I said before: "earn more than you spend, invest the surplus, avoid the debt"

Add two more principles to scrupulously follow and your path to Financial Independence will be definitely smoothed out:

"4) Live below your means;

5) be frugal".

Are you ready to get rich and financially independent? Hold fast, enjoy the ride and stay the course.

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