Achieving financial independence is not tough, though you need to do some smart work to reach that level. However, there are certain steps that you can incorporate to get that level quickly. Here are Dave Ramsey 7 baby steps to gain financial freedom.
Keep a tab on your spending
Keep a hawk’s eye on your daily spending. This is necessary in order to manage your finances and spend accordingly. You can also save up a certain amount by the end of the month. You can open up an account and keep on depositing money in small chunks.
Or you can also save up the money by setting a particular amount. It could be anything, and then with time, you can increase the value. This way, you will be able to save more.
Managing your spending
You will need to manage your spending if you are a spendthrift. It is necessary since you need to look into all your necessary and unnecessary spending and then make cuts. Set a particular amount for yourself, it could range from anything, and then manage your expenses within the limit.
You will be able to manage it better and thus can save up a lot of money.
Set a goal
Setting a goal helps you to focus on your finances. You can set a goal for a week or a day or months, whatever suits you, and then act accordingly. You need to understand where you are and where you want to be and then plan accordingly.
It could be in simple steps, and then you can bring changes with time. Short term goals are much easier to follow than long term plans. Do not start with the long term goals instantly. Start with the short term and then move on to the long term.
Start investing
It is considered to be a quick method to achieve financial freedom. Instead of saving up, you can even try investing money in the stock market. Many apps provide for these services; however, you need to understand this area’s critical operations. Once you have developed the knack for this, you can easily manage your stocks.
This helps you grow money and can prove to be a potential source of income. You can open an online brokerage account that makes it easy for you to learn how to invest, create a portfolio, and manage your expenses. You can always reach out to persons who are well versed in this area or practice in this area.
Live below your means
When you start to live below your means then you are in a better position to manage your expenses. You only look at your priorities and spend accordingly. This can be done by making a budget for yourself, including the essentials and excluding the non-essentials, and spending accordingly.
It is important to learn to adjust since this leads to a minimalist lifestyle. Keep it simple rather than extravagant.
The art of negotiation
Many people are hesitant to negotiate for goods and services. It is a skill, an art that takes time to develop into a habit. Learn to negotiate for the good and services at small businesses. Though it might not be possible in a monopolistic market, you can try your luck in thrift shops or other small businesses.
It’s a good start, and once you get good at it, you will not feel hesitant to negotiate anywhere.
Different sources of income
It’s advisable to have a different source of income and avoid relying on a single source. This is done to prevent any kind of future mishappening which can affect your source of income. For this purpose, you can start investing, starting your own business, or even start working as a freelancer.
It will benefit you a lot in the long run. Additionally, it will reduce the chances of any future mishappening.
Conclusion
These were the seven steps that you can incorporate into your daily life to gain financial independence. You need to chalk out your budget according to your needs and requirements and then set a goal for yourself. It’s simple and easy to follow, and in no time, you will see changes in your spending habits. Let us know your views in the comment section below.
