Steps to achieving financial freedom
Category Property Advice
Financial freedom can mean different things to different people. It can include the ability to go on holiday every December, purchase a new car every two years, or even paying off a home loan in five years. Financial freedom allows people to live the life they want without worrying about bills and sudden expenses. For some people, this may seem like a dream. But for many individuals, the goal of achieving financial freedom is part of their everyday life.
Step 1: What does financial freedom mean to you?
Identifying what financial freedom is to you is the most important step of your journey. Do you want to retire comfortably? Do you want to become a property mogul and not work another day in your life? Discovering the end goal now will help you create a map that leads you to success.
Step 2: Decide on the path you want to take
Many children are taught to start saving money from a young age. It often begins with a piggy bank and then a savings account. In principle, you would also want to enforce this strategy onto your children. As you get older you are encouraged to invest and buy stocks with your extra cash. But what is really the best option for you? This is where educating yourself about the finance and money sector of the world is of vital importance. Read up on business trends, speak to others who are also serious about financial freedom, and do not limit yourself geographically.
Step 3: Save your money
Saving involves gathering together or hoarding funds. In an ideal world, you would be saving at least 20% of your monthly salary. For instance, if you were earning R30 000 per month, at least R6000 would be saved. Many people who desire financial freedom often question how do they save money when they barely make it to pay their current bills. The trick is to live within your means. Create a budget and aim to save as much money as you possibly can. You do not need that fancy pair of sunglasses or the latest cellphone. Saving your money now will allow you to have more in the future.
Step 4: Securing the right investment for your savings
Investing, in a nutshell, means buying financial assets. Investment paths can include real estate, commodities such as gold, stock markets, retirement annuities, and more. The aim of these investments is to earn a profit and grow your wealth.
Real estate is one of the best investments that can lead to financial freedom. While the home you live in should be part of your plan for financial freedom, having an investment property can supplement your goals. Property investments are regarded as immovable assets. Whether you buy your first or your second home, it is a great investment that will continue to grow in value as the years go by. This means that you could one day potentially sell it at a profit.
If you have the savings to buy a rental property, or strongly believe that the income will cover your expenses, then playing your hand at the real estate table may just be what you need to attain financial freedom. Rental property investments can include residential, commercial, and even retail real estate.
With all types of investments, there are risks involved. However, knowing the markets will put you ahead of other investors. The main aim of investing your money in real estate now is to create wealth in order to reach financial freedom. This will ensure that you have enough money to live off when you retire. If you decide that real estate investments are the best solution in reaching financial freedom, contact Knight Frank Properties for more information.
Author: Knight Frank
