Freedom means absence of worry; concerns of the past do not drown hopes in the present and there is a feeling of excitement towards the future. It is more important from an entrepreneurial perspective as it is an indicator of success achieved. Financial freedom means absence of financial worries and adequate preparation for the future. As the saying goes ‘eternal vigilance is the price of liberty’.

How does one prepare for financial freedom?

1. Know Your Expenses

The key factor to look at in the future starts with the present. Awareness of spending habits and patterns help to be more self-aware and identify overspending, if any, from a short-term as well as a long-term point of view. This is the first step to make any fundamental lifestyle changes.

2. Zero base Your Current Reality

It is critical to zero base the reality one is in and strive to look at future variables. This practice helps to know where your hard-earned savings are going and where growth can come from.

This can be done from a financial priorities point of view as well as from a relationships point of view. In business, relationships are as critical as Capital as it helps to develop breakthrough solutions consistently over a period of time.

3. Establish Budgets

A Budget is a statement of authority wherein sanctity is up to the maker of the budget. Discipline at the top ensures that the discipline pervades across the organisation. The budget is a buy in document which is approved by the organisation or the entrepreneur in question. This is an issue which is personal and hence it is up to the individual to decide what is more relevant to him or to her.

4. Pay Yourself First

Most millionaires have a good habit of Paying yourself first. This ensures that personal needs don’t get sacrificed in the journey. This is the first step to have a strong financial foundation. One of the entrepreneurs we know pays himself first. This results in his staff working hard in a result-oriented manner.

5. Experience Compounding

Compounding results in a meaningful return and sometimes exceeds it. For that to happen, one needs to be positive as well as patient. This results in a better chance to secure the future. This can happen if only one is well read on the subject or is aligned to his/her goals.

6. Work with Advisors

Advisors have worked with several people in your situation and can recommend better courses of action. This alone can save you from expensive mistakes which can happen at your end while executing.

Hope you experience financial freedom at the earliest. Start now this Independence Day!

Also read:
Are You Allocating Your Investments Wisely As an SME?

The secret to healthy finances? Setting business & personal goals

15 Lessons from failures: A startup’s guide to becoming investment-ready

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