Many people want to achieve financial freedom. One good way to achieve this is through proper discipline. Allocation of funds should be highly effective and we need to get the highest value for money. These rules are very simple and can be implemented easily by everyone. By having discipline, we also won’t spend money more than we can afford. We will spend on what’s important, instead of what we need. By having the highest value for the money, we should be able to prevent useless expenses. For this reason, we should implement this common sense in our daily lives. We need to do this if we want to become free financially. There are credit packages that enslave us with so much debt. Although borrowing money is essential for modern financial system, it doesn’t mean that we can borrow as much as we want.

If possible, we should borrow the least amount of money and we can achieve this saving enough money for major purchases and emergency expenses. It is also important that we are able to differentiate between assets and liabilities. In general, a liability is something that takes money from our savings account and pocket. On the other hand, assets are able to allow us to gradually increase our wealth level. In order to be able to improve our asset, we should put our financial situations on paper. It is difficult to manage our money in our head. So, it’s important to take a piece of paper and make a list of our current liabilities and assets. We should know how much we earn versus how much we spend each month. An obvious sign of liability is that its value decrease over time due depreciation. By understanding proper comparison between assets and liability, we should be able to establish the maximum sum of money that we are willing to spend.

In this case, we should know to get our balance right and we should set a limit of how much we can spend within a month. It’s that simple and we should set a proper limit. It is important to write the number down and physically prepare the money for this month’s purchases. We should commit ourselves to respect our own intention to save enough money. It is important for us to know about our fixed expenditure. So, that our fixed expenditure will really be fixed. It is also important that we are able to set priorities for our spending habit. It is important that we have proper major objectives and our money will be used on things that are really matter to us. We should know about unimportant areas that we can eliminate. We often don’t remember how much we spend each day for paying something and other things. We should make sure that everything we buy really matters to us and it’s important to get the highest value for money. In general, we should enjoy the process towards real financial freedom.