Most people fail to accept the financial situations they're in and instead blame situations or circumstances. They can't save money or plan their finances because there's never enough money to save. One thing you should know is that there will never be enough money to save. Even if you do get a salary increase or your dream job, it won't necessarily mean you'll have enough money to manage your finances and expenditure. If you have excuses now that prevent you from saving money for the future, chances are you will save even if you get more money.
The first step into being a good financial manager is accepting the situation you're in and taking responsibility. Nobody else can change your current financial situation but you. If your business is not working out or does not generate as much profit as you would want, you're the only one who can change that.
We may blame our employer or government for low wages or customers for not buying more, but the truth is it's never anyone's fault. Blaming others is delegating the responsibility of changing our lives and current financial situation to others, which, of course, won't help us in any way. That's the reason why accepting and taking responsibility is the first step of taking control back and gaining financial freedom.
The next step is evaluating the current situation and planning the way out of that situation. Maybe our expenditure does not match our earning, the best thing to do in that situation is to spend less than what you earn. Most people end up spending more than their earnings and get themselves deep into debt. The lucky ones who spend more than they earn without incurring debt simply don't remain with enough cash to save. Hence, they remain in the same situation year in year out. In order to achieve the goal of spending less, one has to make sure that they have more assets than flossets.
Assets are in terms of investments or businesses that, in turn, put money in your pocket rather than remove it. On the other hand, flossets remove the money from your pocket and reduce your finances. When flossets exceed your assets, you're surely headed to poverty or bankruptcy. As a matter of fact, people considered wealthy in the society have more assets than flossets, but what most people see are the flossets. One way of making sure of achieving financial freedom is by multiplying the resources and minimizing debt. The number one rule of debt that most people ignore is ‘do not borrow to consume rather borrow to increase assets.' However, only borrow when necessary since borrowing always take you a step backward.
Wealth creation is a process that requires individuals to make hard choices and have a bigger picture. It is a process because it requires you to have a vision, then acting on your ideas. That’s why investments are risky but profitable in the long run. Having the desire to make more money will not make you achieve financial success. You can only achieve your goals and financial freedom by trusting the process and beginning somewhere.
To achieve true financial freedom, one must take a critical look at their financial patterns. Be able to critically analyze your financial situation and ask yourself how you spend your active income. How much would you save if you don't go out on Friday nights? What expenses can you do without and instead save? Asking yourself such questions will determine how quickly you can start building wealth and achieve financial freedom.
The road to achieving financial freedom is not easy, but anyone can do it. Every dollar spent on income-generating assets is worth it. Also, cut out unnecessary expenditures and have a budget in place. Budgeting is an essential aspect that most people ignore and eventually fail to achieve financial freedom. Always use surplus income as a catalyst for wealth creation. Avoid spending money on flossets and instead purchase income-generating assets. Also, use the income from your assets to purchase more assets until you achieve financial independence. Use the resulting income streams to maintain financial independence.
Moreover, keep in mind that financial independence is the first step to achieving financial success and freedom. Financial success does not happen overnight and often takes years to achieve — the only way to make it by being patient and resilient.