Do these wealth thoughts always come fleetingly in your mind? 

“Sarah got a new Louis Vuitton bag again.”

“Tom always flies first class, he is so lucky!” 

Have you felt envious of these people, at least once? Or you often wondered how they achieve wealth freedom easily despite you trying your best? They seem to have it all, living the good life. If you find yourself nodding your head, you are not alone. 

Achieving financial freedom is not rocket science, but yet, many seem to be far away from reaching this goal. You must be thinking “What is their secret formula?” If I tell you “There is no secret formula”, would you believe me? You will be surprised that a minor tweak in our daily habits will help us be one step closer to achieving financial freedom. All of us have blind spots and sometimes, it just takes a gentle reminder to push us forward in our financial journey. 

Here are 8 effective steps to achieving wealth freedom:

1. Set financial goals

Take some time to think about what financial freedom means to you and what would you like to achieve – specific goals at a certain age. Eg. How much money you should have in your savings account by age 25 or touring Europe when you are 30. The more specific you are, the higher the likelihood of achieving them.

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2. Make a monthly budget

Set aside specific amounts of money for every expense category. Eg. Groceries, utilities and transport etc. This way, you can guarantee that bills are paid on time and savings are on track. It also protects you from impulse buying and unnecessary expenses. It’s always important to be organized to maintain a good wealth.

3. Wake up early

If you perform a study on successful and rich people, you will realise all of them have a common habit and that is to wake up early. Most of them usually wake up around 5am when the whole world is still asleep because that is the golden period of undisturbed time. Time when they can meditate or exercise, plan their day and start working without any interruptions – productivity at its best. 

As the saying goes, time is money. By the time the world wakes up, you would already have completed some work and it makes you feel good, boosting your focus and productivity even more.  

4. Pay off credit cards in full

Having credit cards are good as some of them offer rebates or flight miles as you spend. However, their interest rates are high and if you are not careful in managing your payments, you will find yourself deep in debt very soon. Make it a point to pay off the full bill every month so you will not accrue interest and still get to enjoy the privileges that come with the credit cards.

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5. Do not procrastinate

Everyone has 24 hours a day and we should be mindful of how we spend our time. If you have things that you need to do today, choose to complete them today rather than putting them off to tomorrow. When we use our time wisely, it creates a higher probability of success in achieving financial freedom because we are always active and “doing”. 

6. A little goes a long way

Some of us have a habit of buying coffee from Starbucks every morning or at other times of the day. Think of it this way – you might think it is just a couple of dollars but when you multiply the amount for a cuppa by 30 days, you would discover that it adds up to two hundred dollars easily. Instead, choose to drink your coffee at home or better still, invest in a coffee machine to enjoy the same luxurious coffee at a much lower price and it helps you to maximise your savings.  

7. Create an automatic savings account

You don’t need a lot of money to start a savings account but you need discipline and commitment to build one. Some of us might lack the discipline to save up a certain percentage or amount of our salary every month so the best option is to create an automatic savings account to help us save for rainy days and earn some interest too. This is a simple but yet fundamental method to accumulating wealth. 

8. Invest

Start investing at an early age. For beginners, it is good to start small and try investing in low-initial-investment mutual funds or value investing. As you understand how investing works, you can venture into other types of investments like the stock market or real estate where larger amounts of capital are required.

 

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