Ah, financial freedom. Isn’t it something we all strive for? And yet, isn’t it something that we all find extremely unattainable, no matter how hard we are struggling to save money? The bills we have to pay won’t disappear, and then there’s the fact that we constantly get surprised by some expenses we didn’t expect. Expenses that certainly make a dent in our budgets.
Does this mean that financial freedom is a dream you should give up on, or should you strive towards it regardless of all the obstacles you are facing? Well, it is certainly not an unattainable dream, meaning that giving up on it is not the wisest idea. You can do it, if you learn how to do it right, and perhaps the first thing to learn is what Aussies consider to be the magic number for financial freedom, which is explained on this page.
Financial freedom means different things for different people, and that’s something to keep in mind. So, while that magical number that Aussies are claiming to need to be financially free is a good approximation, it doesn’t automatically mean that you’ll need the same number. Depending on your specific situation, on where you live, on your family life and your finances in general, you could need either more or less than that.
Anyway, you’ll surely be able to figure out that you have enough when you have it. It’s the part of getting to that magical number that is tricky. And, it is that specific part that you need help with. Below I’ve prepared a comprehensive guide towards your financial freedom, meaning you’ll get tips you need to achieve it. Tips to follow if you are seriously ready to do what it takes so as to achieve the freedom you desire.
A Guide to Your Financial Freedom
Sure you are ready, aren’t you? It’s just that, you don’t even know where to start, and let alone which steps to actually take towards making this happen. Completely normal to be confused about all of this, but completely normal to want to learn more about it as well. So, let me tell you about the steps you’ll absolutely have to take when aiming at achieving financial freedom in Australia.
No goal can be achieved unless you have a proper plan. What does this mean in light of your finances? In short, it means you will have to clearly define your financial goals before going any further. What do you want to achieve?
Do you want to eliminate your debts, save more and spend less, save for retirement, build an emergency fund, save for a larger purchase, such as a home, or simply save enough money so as to live your entire life stress-free and unburdened by financial struggles? All different types of goals. And all require different strategies to be achieved.
An advisor could help, as long as you find a good one: https://www.abc.net.au/news/2019-04-17/personal-finance-how-to-find-the-right-financial-adviser/11019638
Having defined your goals, you’ll have to proceed towards actually analysing your spending habits. Do you spend far more than necessary on certain things, such as streaming services you’re not using, dining out every day, and similar? Tracking your spending will help you understand where your money goes, as well as lead you to identifying any unnecessary costs you may be able to cut. It is those small steps that will take you to the finish line, so don’t underestimate them.
Financial freedom can’t be achieved if you’re in serious debts. So, paying off your debts should be the next thing to focus on. Sure, you may not be able to do this right away, but working towards it, slowly but surely, will certainly give you more peace of mind in the future, knowing you’ve made a huge step towards financial freedom, having repaid all of your debts.
Automating your payments and savings can also help. How? Well, if your goal is to pay off the debts, automating a portion of your salary to go directly towards that purpose will help avoid any second-thoughts and spending the money on something else. Doing this one month after another could get you in even more debt, and your goal is to get out of it. Furthermore, automating your savings means having an amount transferred to your savings account automatically, every pay period. So, saving will become an obligation, instead of something you may or may not do.
Without a doubt, the most significant thing to do when aiming at achieving financial freedom is hiring a professional financial advisor. As already explained, you may not even know how to start working towards this goal and towards the freedom you desire, and your specific financial situation could be so complicated that you won’t know how to make the right plans. An advisor, on the other hand, will certainly know precisely what you need to do, and they will work together with you to create the perfect plan, helping you become more responsible with your money and save as much as you need.
Get Professional Financial Advice
The idea of working with a financial advisor and thus getting professional advice on how to achieve the freedom you are after requires a bit more attention. Why? Because the point is not in simply working with one of these professionals, but in working with the perfect one for you. Getting professional help and advice here is a must, and will be extremely helpful, but only if it comes from the right sources, that is, from trusted and knowledgeable experts. It is finding those trusted and knowledgeable experts that can be a bit complicated for you.
And yet, even though this may be a bit complicated, you’ll surely get to find the perfect financial advisor in Australia, as long as you do your research right. Checking how long the experts you’re considering have worked in this industry is crucial, and so is determining if they are well-known, reputable and trusted in the community. Of course, comparing the fees they charge should also help, but remember that the fees should never be your number one criterion.
