One of the things that the global pandemic has taught us is to have a well-managed financial portfolio. As soon as lockdown began, unfortunately, many people lost their jobs. Businesses were also deeply affected. A large number of people were under huge financial stress and with this never-ending outbreak of Covid 19, recovering from the Pandemic has not been easy for many people. But this is not the first time. We have seen market crashes and periods of high unemployment over the years.This has led financial experts to believe that a need for multiple income sources is imperative.The underlying concept used by these experts here is Financial Freedom.Financial freedom can be articulated into three major domains, money management, having multiple sources of income, and lowering debts. It is believed that if understood correctly, financial freedom can greatly improve your lifestyle.
Financial Freedom in simplistic terms means to have enough disposable income that one can manage one’s own personal expenses. To be able to save money and not be worried about having a job to survive but rather you are in charge of your own time.To begin with, increasing your sources of income can be done in multiple ways. Investment in stocks, startups or pre-established business is one way to go about it.
With the never-ending demand of the service industry, There is reasoned to believe that learning new skills can be a great way to add earn extra money into your pocket. Learning new skills not only enhances your work capacity but also increases your income. You can practice the newly learned skills in your existing job, boost your performance, and demand a raise from the employer or you can also practice these skills on freelance platforms. Either way an increase in your disposable income is possible. Apart from this, you can always have a side gig going on with your job. It may only take up an hour or two after work but would greatly help you with managing your financials in a better way.Make sure your with your Side gig there is not a conflict of interest with your regular job.
Money management is a major aspect of financial freedom. You cannot truly achieve financial freedom if you have not mastered the skill. Money management is all about consciously managing your money effectively.
The reality is that savings alone will never make you give you financial freedom. You must put work your money to work for you and take prudent but necessary steps to financial independence.
Lowering debts is also essential.But in part 2 we will expand further on this. The reality is that the road to financial independence is not an instant one but rather a systemic planned out agenda that will take discipline and consistency.
I will be writing several more articles where I will look more in depth at steps to financial freedom. Financial freedom is simply possible and it can be achieved no matter your status and job title.
I believe in living life in a simple yet fulfilling stratosphere. Simple doesn't mean denying yourself of all the great things that life has to offer. Life was meant to be lived on your own terms and not on someone else's. It is about you.