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How to Achieve Financial Freedom – on Any Budget

date September 2, 2021 time 5 min read 1340 views

We can’t tell you how to become a millionaire within six months (or even six years), but we can certainly give you a few tips on how to achieve financial freedom one day. Despite what you might have heard, it doesn’t require luck or excessive risk-taking—just a carefully formulated strategy and a little consistency.

The only downside to understanding all this is realizing how much time you’ve wasted already, so don’t let another second pass.

If you spend a lot of time on the internet, you might have assumed that the only people telling you how to achieve “financial freedom” are fake gurus selling $200 courses about becoming a forex trader. But make no mistake—while there’s no surefire way of achieving financial freedom in a short timeframe, it’s an achievable goal over the long run.

Don’t let the doom and gloom about everything going downhill fool you. With the world of work and technology developing fast, there are more opportunities to make money today than ever before. The key? Developing several income streams, with at least some running passively. Here’s everything you need to know how to achieve financial freedom with a sound strategy.

Achieving financial freedom

While some may find excessive wealth slightly distasteful,  nobody can deny the appeal of financial freedom. This isn’t about purchasing the latest Rolex or Rolls Royce—it’s about buying back your time.

Whether you want to spend more time with your family, try your hand at becoming a full-time novelist, or travel the world, financial freedom will get you there.

If you’re new to the idea, you might assume that saving up enough money to stop working is a pipedream. But, depending on your annual expenses, you might not even need to be a millionaire—you just need to know how to make your money work for you. Fortunately, that’s exactly what we’re about to teach you.

How to achieve financial freedom

Just because the idea of financial freedom is new and exciting, it doesn’t mean that all the steps involved are just as interesting. What did you expect, that you could skip over the being-generally-sensible part and start picking money off trees instead?

Learning how to achieve financial freedom is a journey that takes time and research
Learning how to achieve financial freedom is a journey that takes time and research. (Source: Pixabay)

No—you’re going to need to learn (and practice) sound financial management. 

Hopefully, you already have an idea of what that looks like. But if you’re starting from scratch or you need a quick refresher, here goes.

The basics

You can only save money if you’re bringing in less than you spend, and there’s only one way to be sure of that: creating and sticking to a budget. When you look at the impact of your regular expenditures, you might be surprised at what you see—that $3 cup of coffee ends up costing $60+ a month.

Fortunately, in the modern age, budgeting doesn’t have to be time-consuming. To make the process more convenient, consider a personal budgeting app. See? No excuses.

Once you have your incomings and outgoings in check, it’s time to start thinking about debt. Now, paying off debt isn’t always the right decision (it depends on the interest rate), but there’s one kind you should definitely tackle: credit card debt. Those rates should be illegal, so make it a priority to clear anything you’ve built up so far, and switch on your automatic payments in the future.

The next thing to think about is insurance. It might mean more upfront expense, but it pays (literally) to have a good policy. Even if you’re not prepared to fork out on life or income protection insurance, consider healthcare at the very least. Look after your money, but look after yourself too.

Budgeting might not be the glamorous activity in the world, but you won’t reach financial independence without it.
Budgeting might not be the glamorous activity in the world, but you won’t reach financial independence without it. (Source: Pixabay)

Finally, practice financial savviness where possible. Look for the bank accounts with the best yields, shop around for your insurance policies, negotiate the price of your monthly bills, consider a card that offers cashback—you get the idea.

It’s up to you how far you take things, but make sure you lay a good foundation before you start thinking about investing in cryptos like qtum coin

The fun stuff

Once you’re sure that you’re no longer no longer being too casual with your finances, you can move from protecting what you have to growing it. This is where things get way more interesting—and where the link to financial freedom becomes apparent.

Now you’ve saved some money, don’t just stash it away in your savings account and let inflation eat away at its value. Invest! 

Many people wrongly assume that investing is super risky and not for “ordinary folk,” but this simply isn’t true. 

If you invest in a good index fund, mutual fund, or ETF (like the S&P 500) and you leave your money in there for at least five years, failing to get a return would be unprecedented.

But make sure that you choose a tax-incentive vehicle. In the US, putting your money in a Roth IRA rather than a standard investment account ensures you won’t be taxed on your withdrawals when retirement comes around, and most other countries have an equivalent option. 

If you’re interested in diversifying your investments further, consider alternative assets like commodities or cryptocurrencies. These are much riskier than funds though, so only allocate a small percentage of your total net worth (or, as some would say, an amount you’re happy to lose).

Plus, if you buy BNB, BTC, or ETH, you can make your money work for you even further. Lend your crypto to borrowers on MyConstant and earn up to 7% APY

Whatever investing strategy you choose, you can look forward to something called compound interest. This is where the magic happens. Your initial investment earns interest, then that interest earns more interest, and so on. So, if you invest $1000 a month for the next 25 years and the annual interest rate is 10% (the average for the S&P 500), you can expect almost $1.3 million by the end. 

Do you still think financial independence is impossible?

The route to achieving financial freedom

By now you should realize that financial freedom is within your grasp. But you can’t expect to open your bank account one day and realize that your savings have finally hit your goal—you need to be proactive in your approach.

Time in the market beats timing the market, so get stashing away those pennies ASAP.
Time in the market beats timing the market, so get stashing away those pennies ASAP. (Source: Pixabay)

Whatever point you’re at in your journey, we have something for you at MyConstant. If you’re just looking for somewhere safe to store your savings and earn a little interest, you can deposit your US dollars with us and earn 4% APY. Plus, it’s compounded and paid every second, so you’ll get the satisfaction of seeing your money grow continuously. 

Or, if you’re prepared to take on some risk, you can try lending money online to borrowers and earn up to 7% APR. This means you’ll be lending directly to people and businesses (who have put down collateral to make your investment safer).

When you invest with us, you’ll also get:

  • 24/7 customer service.
  • Flexible terms.
  • No fees.
  • Withdrawals at any time.
  • $10 minimum deposit.

Why not create your free account today and find out for yourself if we’re right for you?

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George Schooling

George Schooling

Earn up to 15% APY on your idle stablecoins (USDC, USDT)

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