Everyone has a different idea of what Financial Freedom means to them. To some, Financial Freedom means being able to spend money on cars, houses and jewellery, while to others it simply means living a life free from money worries. Most people want to feel safe and comfortable, but don’t think much beyond that vague desire.
In fact, when people describe their visions of their financial future to me, what I often hear are just that: visions, not plans. The people I’m speaking with have no idea how to actually move from their vague desires and ideas to the reality of Financial Freedom.
Picturing yourself Financially Free
In the long-term, a vision is only the first step to Financial Freedom. To actually reach Financial Freedom, you need a plan. And in order to make any progress toward a financial goal, you first need to be able to clearly describe that goal. You have to be able to lay out the specific steps you need to take to get to where you want to be.
The path to Financial Freedom
To get on the right path and identify your steps, start by defining your goal — and that means thinking about what Financial Freedom means to you. The more details you can imagine, the better. When you see yourself as Financially Free, how old are you? What type of work are you doing? How are you spending your money?
Describe this view of your future on paper, maybe even add a few pictures. Your path may not be easy, so when you forget what you’re working toward, or you feel discouraged, pull out the paper and renew your dedication to your goal.
Reaching Financial Freedom
Once you have your goal defined, work back from there to figure out how much money you need to support that vision. What do you need to do now to make that life possible? As you’re planning, follow these three key steps, and you’ll have a clear understanding of Financial Freedom:
- Calculate how much you need invested to be Financially Free;
- Determine what you should invest in, and how it should be structured; and
- Establish a plan to take you from where you are now all the way through to Financial Freedom.
Financial Freedom is the final stage and the one you’re aiming for. But if you can’t clearly see or describe what your goal is, you almost certainly won’t be able to achieve it!
Dr. Tony is the co-founder of MindShift.money and the best-selling author of three books on personal and business finances. Having achieved Financial Freedom at 27, Dr. Tony believes that through Financially Fit Bootcamp and Cash Flow Cure everyone can get there. He has made it his life’s mission to help others live a life where their money works for them—not the other way around.