Financial Freedom Trail

Returning yourself to a position of financial freedom always seems like a daunting task but you need to look at the journey as a trail to financial freedom as opposed to believing that your good financial status will return overnight. The only way that you will achieve total financial freedom overnight is by winning the lottery or inheriting an amount of money that not only clears your debt, but is also spent on clearing your debt. For everybody else, the path to true financial freedom is a step by step process. In fact, if you are in need of taking this direction, then it is a little easier to understand the need for sensible steps, when you think about the fact that your indebtedness has also been a step by step process, that has ended in your current predicament.

None of us start out in a bad financial situation. We get there through making less than favorable decisions about what we do with the money we earn. You are not alone if you are in this position, as millions of people around the globe are now realizing that some of their decisions have been such that they are now in trouble financially. However, that being said, time and good sound decision making are the only two things you need to apply to begin your trail to financial freedom.

You might be asking “what does it mean to become financially free” and to me the answer is simple. It is the position you find yourself in when the money you have or earn, far outweighs any commitments you may have. It is a place where no matter what happens with your income, you are not going to worry about paying debts and the bills can be paid as and when they fall due. This to me is becoming financially independent. The ability to go about your day to day business without being indebted to any third party is true financial freedom. This may be something that is very hard for you to imagine, but whether or not you can see it clearly, it is possible for each of us. Living within our means is the best way to stay and always be financially independent.

The Road is Bumpy, but worth it

Your personal financial freedom trail always starts with the realization and acceptance of the place you are in currently. From that point, it is easier to establish the various steps you will need to include in your action plan to achieve financial freedom. Think of the end result as the large concrete building at the top of a flight of steps. Those steps are the things that you must do to reach the top and secure your new found freedom. Step one is the acceptance, true acceptance of where you are now and the understanding that you must change things. Step two might be formulating an effective budget to include all of the things in your life now that require ongoing financial servicing. This budget would of course include all forms of current income, with an allowance being made for any opportunity you may have in the future, to increase your income.

Step three in your trail to financial freedom might be to approach a professional financial advisor, taking along with you your budget and your goals. This person can then advise you on the best course of action for you to achieve your goals. Make sure too that you fully understand that this journey will take time. By understanding that fact, you will not be expecting any overnight fix, that is unrealistic and probably impossible. Goals must be attainable and realistic; otherwise they will not be effective.