Financial freedom is when you are able to meet all your financial needs and still have some surplus money to save and go for outing with your family, girlfriend or alone if you are a lone ranger and at the same time you are not forced to sacrifice your time to keep making the money. According to one of the senior financial advisors at Wilkins Finance, when you have financial freedom, the money should run out just after days of not working; you should have enough money to keep you going even if you are out of work.

Unfortunately, with the current deteriorating economy across the world, some people are finding it quite hard to afford to have financial freedom. It is a luxury for most people especially those who mismanage their saving and those who do not invest their earnings wisely. You can use the little money that you make out of your formal or non-formal employment to build yourself a small or even large financial investment that will sustain all along even without a job.

You may also try to argue out that since you got a business that is consistently giving you profits, you are financially free. But you can only talk about financial freedom if the business does not depend on your full-time presence for things to run. As in even if you are not around, the business will go on making profits for you. That is the only time that you can brag about being financially free/independent.

In simple terms, it doesn’t matter which profession you are in. It is true as a doctor or an engineer in a big industry you can buy everything that you want and travel to whichever destination you feel like, but the question is; will you be able to do that when you stop working as a doctor or as the engineer? Will you have money to keep you going the same way you used to without straining yourself to make ends meet?

Everybody can be financially independent. It only depends on how well they are able to invest and manage their finances. Below are some helpful tips on how to become financially free:

Plan the kind of a lifestyle you want

You should have a clear picture of what lifestyle you would want to maintain.  Of course, it should be a lifestyle that you can comfortably afford without much struggle. With the picture in mind, it will be easy to work towards having a financial freedom.

Your spending should be less than your earning

To achieve, the lifestyle that you aspire to have, you must learn how to save money so that you can use it to improve on the areas you want to improve on. The only way you can get something to save is by learning to spend less than what you earn.And saving calls for sacrifice.  You will have to sacrifice some spending habits to and save the money you would have spent instead.

Take some money out of your saving and invest

Putting all your money in your bank account does not profit you much. If you wanted to pay for an emergency you would have some money to do so, but after that, you would be left with no money.You should divide your savings and invest some in something that will be earning you some extra income. One of the best investments that you can make is investing in financial market trading. This way your money will be working for you as you rest.

Diversify your investment

You should not investin a single field. You should invest in different things so that even if one investment fails you, you will still have some income flowing in. this also helps in managing the risks involved.

Secure your income before going for assets

Before you start thinking of gaining assets, you should ensure that you have a secure source of income. You should use the money you get from your investments to ensure that the investments grow to a point that they can run with a minimal input from you.Just avoid acquiring fancy vehicles or homes. You will have the time to do all this once you get a good income. Remember some of the assets like fancy cars depreciate very fast to an extent that you cannot trade them for money in case you may need some extra money later.