The notion of financial freedom has evolved quite a bit recently. Wealth accumulation alone no longer dictates whether someone is successful. Instead, it has become less about the amount of money in your bank account and more about your purpose-driven financial lifestyle. Projecting an appearance of wealth is far less important to many Americans. Utilizing their financial resources to make a positive impact on themselves and the world around them matters much more.
Let’s face it. Financial success can be tough to define and just as tough to accomplish these days. Many families are living paycheck to paycheck, saddled with loads of debt. Even high earners struggle to create significant headway toward stability with their money. Lifestyle inflation and FOMO are often the culprits. People get trapped in a vicious cycle of struggling to make enough income to keep up with their mounting monthly bills.
Fortunately, achieving financial freedom has little to do with how much money you make. It is about becoming comfortable with living at or below your means and being purposeful with the extra funds available to you. What is so interesting about financial success is that it looks vastly different for everyone.
Some of the most financially free people are those you would least expect. They are hyper focused on spending thoughtfully, putting their money toward what is most meaningful in their lives. Whether it’s travel, passion projects, philanthropy, business ventures, a healthful lifestyle, or something else entirely, the message is clear. The people who are financially free today are spending money on what they care about and being quite frugally minded about the rest.
Reaching the financial freedom milestone takes time, focus, and discipline. As we have all learned living through the pandemic, there are lots of uncontrollable variables that impact our daily lives. Navigating those unknowns can be a tough ask. But there are plenty of financial choices you can control, and those are what push the needle in the end. Keep moving in the right direction, and over time steady discipline with your money will benefit you in the long run.
Here are a few straightforward and actionable steps you can take to get on the path toward financial freedom:
- Increase your savings rate each time you get a bump in income.
- Put your money to work through a diversified portfolio of investments.
- Set both short-term and long-term financial goals for you and your family.
- Create a financial plan and review it regularly.
- Be consistent with paying down debts.
- Avoid taking on consumer debt in the future.
- Take five minutes daily to check in on your overall financial picture.
Remember that consistency and habits are key to any successful improvement of financial well-being. It does not need to be complicated, and you should not feel the need to do everything all at once. What we are talking about are small, positive, and consistent changes over a long period of time. You just need to start, which can often seem like the most difficult step of all.
Interested in learning how we may be able to help steer you toward your own version of financial success? Reach out here to schedule a free initial consultation.