It can mean a variety of things to different people.
Some want to hit the point where they can quit a soul sucking day job and instead work on projects that matter to them. Other people love their jobs and just want the security that comes with working because they want to and not because they have to. And for others financial freedom is important so they can quit work altogether and instead spend their days with family.
No matter the reason behind the goal everyone can use the same basic strategy to achieve the end result.
In fact, you should consider yourself lucky to be living in this era. The possibilities for financial freedom are endless. We’re no longer living in the days where you have to work until you’re sixty-five. I hear story after story of people who are able to retire in their thirties, forties, and even younger.
Reaching financial freedom at an early age is possible and is entirely up to you. If you’re dreaming of the day when you hit that point here’s one way you can get there.
Live Way Below Your Means
When you cut back your expenses and live on less you’re doing two things. First, you’re putting yourself in a position to save and invest more of your money. Secondly, you’re lowering the amount of money you’ll need to live on for the rest of your life. It’s a double effect.
Living below your means doesn’t mean that you have to like a pauper. Far from it actually. You just need to spend money based on your priorities and cut back everything else.
In all actuality this is the most important step of your journey. Spending less than you make is your ticket to freedom.
Continually Invest Your Money
When you’ve got the money to save you have to invest it in some way. If you’re leaving your cash sitting around in a savings account earning nothing you’re losing money to inflation. Make your money work for you.
There are so many investment options today that it doesn’t make sense NOT to perform your due diligence and find the right fit for you. You can go a traditional route and invest in stocks, mutual funds, EFTs, or bonds or you can choose an alternative investment.
Some examples of alternative investments include peer to peer lending, real estate, angel investing, and commodities. And realize you don’t have to pick just one investment. In fact, that’s rarely a good idea.
Think of your risk tolerance and preferences and find something you feel good about.
Emulate the Super Wealthy
Do you know where many of the super wealthy put their money? Hedge funds.
A hedge fund is an investment that hedges against market inefficiencies. These assets use strategies that are meant to bring you consistent strong risk-adjusted returns.
In the past hedge funds were only available to investors who had at least 5 million dollars to put toward them! That made hedge funds very hard to access the majority of the population. But, times are changing.
You can invest in a hedge for as little as $20,000 with Sliced Investing. It’s nice to have access to investment vehicles that in the past were only available to the super wealthy.
Keep Your Investments Diversified
And last but not least, keep your investments diversified! It’s worth saying again – your investment options are endless. If you do your research you shouldn’t have a problem finding investments that suit your personality and compliment your individual situation.
Don’t put all of your eggs in one basket. No investment is risk free. However, it’s important that you find the ones that are going to push you toward financial freedom just a little faster.
Keep on Keepin’ On
The road to financial freedom isn’t an easy one but if you’re determined, you will get there. Manage your money wisely, choose investments that are appropriate to you, and stay focused on your long term goals.
Your future self is going to be very thankful!
What’s your plan for reaching financial freedom?
Disclosure: This blog post was written for Sliced Investing pursuant to a paid content arrangement I have with the company’s representatives as part of an effort to raise awareness about alternative investment options.