Do you know that it will only take you 10 years to attain financial freedom if you start now? Fascinating as it may sound here is how you get started;
Budgeting and tracking your finances.
You should be aware of where all of your money goes. Tracking is as simple as writing down your daily expenses and analyzing them at the end of the month. Budget once you’ve defined where your money goes. You can apply the 50/30/20 rule, which states that 50% of your money should go toward needs and essentials, 30% toward wants, and 20% toward savings. Another option is to pay yourself first, take care of the necessities first, including savings, and then spend the rest of the money on wants. You could also use budgeting apps. Whatever method works best for you in the long run.
Saving
If you are considering early retirement, you should save at least 20% of your income. Saving money usually necessitates setting a goal. What are your objectives? Is it a down payment on a house, a vacation, or even education? The next step is to prioritize your goals and assign a time limit to them. Automating your savings is a good way to save. This will keep you from being tempted to ‘steal’ from yourself. Is there any unnecessary spending you should eliminate? Eating out and shopping without planning are two examples. The only difficult aspect of saving is getting started. Begin right away!
Get a side hustle
Is there a business idea you’ve been putting off for a while? Is there anything you can do in your spare time to earn money? Determine what you enjoy doing and what you are good at. Start a side hustle. It will not only increase your income but will also allow you to meet your financial goals faster. Consider the time you want to take on that side hustle and ensure you balance it with your full-time job and personal life; if all appears to be going well, add another side hustle.
Living below your means
living below your means spending less money than you earn. For example, if you earn Ksh 35,000 but only spend Ksh 30,000, you are living Ksh 5000 below your means. Living below your means teaches you financial discipline. Every expenditure will be deliberate, and You will have the capital to invest. You’ll be amazed at how confident you’ll become in managing your personal finances once you start reaping the benefits of living below your means.
The bottom line
Financial freedom calls for discipline and sacrifice. It may seem like a struggle when you start but you will enjoy the fruits of your labor in no time. The earlier you start the better for you. If you need any financial advice kindly contact us on 0711082929 or email us at [email protected]
