Financial freedom is a dream for many Australians.

Although the definition of financial freedom varies from person to person, you will find that most say that it’s a dream of being debt free, being able to provide for yourself and your family, and being able to do what you want, when you want, wherever you want with who you want.

As famous novelist Jane Austen once said, “a large income is the best recipe for happiness I have ever heard of.”

What if we could tell you that you can be financially free?

What if we could tell you that you could be financially free and that you could quit your job for good? Perhaps not to retire… but perhaps to finally follow that passion project that you’ve been yearning to get started since you were young.

Here are seven ways that will help you to live those dreams and get on track to your definition of financial freedom:

 


1) Create a savings plan

You start a savings plan of some sort when you go on a holiday or buy a car. So why not create savings plan that will benefit your overall financial position for the long-term?

Having a solid savings plan will benefit you in many ways. Including being able to invest in good opportunities when they approach themselves. (i.e. property, shares, business).

According to the Australian Securities and Investments Commission (ASIC), 65% of Australians who have a solid savings plan are confident they will achieve their financial goals. However, an extra-ordinary 43% of Australians don’t have a clear plan as to how they will achieve them or where they should even being.

When making specific financial goals you must get clear and precise as to what it is you want to achieve – week by week, month by month, year by year. Ask yourself questions such as:

What happens to my future if I don’t start a savings plan?
How will I ever become financially stable if Im constantly living pay-check to pay-check?
What’s the worst that can happen if I save 20% of all of my income each week?

Seriously, we all earn different amounts, but we can all start somewhere and I think its suffice to say that not saving on a regular basis is a sure fire way to end up broke in your later years of life.

 

2) Start paying yourself

Once you have your savings plan in place, it’s time to start enforcing that savings plan! And the best way to do this is to set up simple systems that pay you first from any income that you earn.

Having a forced savings plan will help you achieve your short term goals and give you the momentum to continue on the right path.

Sure, their is an element of discipline required to do this, but we promise that it’ll become like second nature once you get into a habit.

A great idea (if you’re employed), is to ask your employer about splitting your pay across two accounts. Starting with 20% of your income and placing it automatically into a web-savings account. That way, you are saving every week without really knowing that you are doing it.

If you are self-employed you quite simply need to be disciplined. Each time your invoice is paid, you need to place GST in one account, then place at least 20% of what is left over in a web savings account (one without a transaction card).

Trust me, before to long your savings will start to increase and before too long you’ll be feeling much better about your financial position. And when those annoying instances like car problems or over the top phone bills come through, you’ll be able to pay them immediately and still be in a great position.

 

3) You can live on (much) less

Sometimes wanting something important (such as financial freedom) means that you will need to change those things that are counter productive to your goals.

By changing just one thing you do regularly you will be surprised how much money you will save.

It could be:

Cutting down on your one daily coffee (around $2,000 per year savings);

Bringing your lunch from home (around $2,500 per year) or;

Having people over for dinner rather than going out on a regular basis (around $2,000 to $3,000 per year).

ASIC has an app that can help you keep on track with your goals. You can find out more by clicking on the below link:

https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/mobile-apps/trackmygoals

 

4) Look to accumulate assets

If you are sick and tired of working for money… Then it’s time to start making your money work for you.

Truly wealthy people have more than one thing to invest in. However, it’s the way that you invest in those assets which is the most important thing.

An example is to look at how you can purchase your first investment property.

Spend some time creating a plan that focuses on further investment once you experience an increase in equity and cash flow.

From their you have leverage from your investment – which does not impact your current cashflow – and you can look to acquire a second asset.

I know it’s sounds simple, but honestly if you talk to the right people who know exactly what to do, where to do it and how to do it, most of us are already in a position to acquire our first asset.

Financial freedom is a journey, not a destination, and this part of the journey will not see you living the high life. But it is a crucial step on the journey and once accomplished, will give you the momentum to take things to the next level.

 

5) Become knowledgeable in the area of financial wealth and making money.

Learning how to achieve financial freedom is important because how will you know how to achieve it otherwise?

You don’t know what you don’t know…

So how will you ever know if you don’t learn.

A great mindset is the foundation to achieving your goals… whatever they may be.

A really good place to start is with a great book by author Robert Kiyosaki called “Rich Dad, Poor Dad.”

There is a reason this book is a best seller…

You can read the introduction by clicking here – and we urge you to purchase this book – it will change your life.

 

6) Seek advice from people who have had success

You’re life is equal to the sum of the average of the 5 people you surround yourself with the most.

Ask yourself, are you taking advice from people who are already financially free and living their dreams? Or are you taking advice from someone who is in debt up to their eyeballs or has settled for simply owning their own home without spending a cent on any kind of investment.

Getting advice and education from people who are where you want to be is the only way forward.

Our own Tim Guest has emphasised many times the importance of being mentored by someone who has already achieved.

He himself can tell you his own story that took him from over $40,000 in personal debt at 22 years of age…

To owning 13 properties by the time he was 27 and semi-retiring as a multi-millionaire.

He didn’t just one day way up and figure it all out… he was lucky enough to cross paths with someone who quickly become his mentor.

And he turned everything around to not only be literally “financially free” but to go on to spend his life impacting as many people as he can by teaching them what was taught to him.

Surround yourself with the right people… people!

 

7) Take massive action

We can’t stress this step enough. It’s all good to say that you will achieve financial freedom, but when? How much? How will you know? What are the defining factors… and what are the tasks you need to complete to get their.

If you do what you have always done… You will get what you have always gotten!

Perhaps it’s time to do something different this time.

Take action – start saving

Take action – get a mentor

Take action – read a book or ten on wealth, investment, successful mindsets

Take action – listen to a podcast or 3

Take action – talk to your bank about your current capacity

Take action – talk to Tim Guest and create a strategy

 

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