The 8-Step Plan To Achieving Financial Freedom

The 8-Step Plan To Achieving Financial Freedom

Will Healy   Mon, July 12, 2021,

The late Jim Rohn, who spent 40 years as a sales expert and motivational speaker, would frequently discuss financial freedom in his podcasts. In his distinctive voice, he would emphasize the need to learn to work harder on yourself than you work on your job. He called making money in America “easy.” Of course, his definition of “easy” was “something I could do,” meaning that it involved quite a lot of hard work.

Rohn also mentioned that people find it easy not to follow these steps. Unfortunately, most Americans appear to choose that version of “easy.” The U.S. holds the 11th largest per-capita GDP in the world at $62,641 per year. Despite this, only about 40% of Americans can cover an unexpected $1,000 expense.

Consequently, many find it difficult to imagine financial freedom when they have to go into debt to repair their car or replace a worn-out appliance. You can change such circumstances by making a commitment and taking time to learn the lessons of paying debt, saving and investing.

8 Steps To Achieving Financial Freedom

Achieving financial freedom will not happen by accident. It will take discipline and commitment, a set of specific steps that can make this goal a reality. These processes will make financial independence a concrete goal and help you avoid money mistakes. They will also help place you on the path needed to turn early retirement into a reality.

1. Define Financial Freedom for Yourself

Most people you ask will say that they want “financial freedom.” But what does that mean? Going back to Jim Rohn, he defines it as the ability to live from the income of one’s personal resources. Even this leaves a lot of vagueness, as financial freedom can mean different things to different people.

Does it mean a modest or a lavish lifestyle? Living in a high-cost area or a low-cost one? Will you have mortgage or rent payments, or will you live in a home already paid off? What other debts, if any, will you still have to pay down? All of these decisions will factor into your definition of financial freedom.

2. Make a Budget

One way to ensure you stick to your financial goals is by making a budget. This takes every dollar of income and assigns a purpose to it. Admittedly, budgeting for that morning latte or the vacation to Hawaii might be difficult at first. But once you adjust to the discipline of living within your means, your budget can be empowering.

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