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How to Achieve Financial Freedom & Early Retirement? 

  minutes read

When it comes to financial freedom, you may hear (or even see) people saying how they spend practically nothing just so they can retire at a younger age. But let’s face it – most of you will not want to do the things you need to retire at the age of 30, 40 or 50.

 

Many of you might not even be saving enough right now to maintain your current standard of living at the age of 70. In fact, according to Northwestern Mutual’s 2018 Planning & Progress Study, about 21% of the general population has nothing saved for their retirement.

 

You see, planning for retirement (or even financial freedom) is not a sprint; it is a marathon. Breaking up your financial independence goals into smaller chunks can allow you to stay on track while making the journey to financial freedom more manageable and, hopefully, less stressful. Even if you’re starting small, remember that the most important thing is to get started!

 

In this blog post, we’ve shared five levels of financial freedom that can help you accomplish your retirement goals. But first, let’s understand what financial freedom is.

 

What Is Financial Freedom?

In a nutshell, financial freedom refers to having sufficient investments and money on hand in order to be financially independent and secure. When a person is financially free, they can make life decisions based on their financial security and live the life they want without being controlled or held back by debt, paycheck, or other financial obligations.

 

Additionally, it also ensures that you’re able to support and maintain your family’s lifestyle without having to worry about any financial strain. The thing is, materialism can shackle you to a job you hate, create dependency on a regular paycheck, and also grow your desire to impress others. But there’s so much more to life than merely buying things you desire.

 

By leading a comfortable lifestyle with reasonable spending and relatively greater amounts of savings and investments, you can achieve financial freedom, creating a safety net for yourself and your family. And the best part about devising a personal financial freedom plan is that you can do it on any income bracket, with any level of education, and for any household size. All it requires is some preparation and time.

 

5 Levels of Financial Freedom 

Here are some of the main levels of financial freedom that you must work towards accomplishing:

 

Level #1 – Build an Emergency Fund

The first level to achieve financial freedom is creating an emergency fund. Ideally, this includes paying off your your debts, including credit cards. However, for millions of people, living paycheck to paycheck is a harsh reality. According to a report on Economic Well-Being of U.S. Households by the Federal Reserve, roughly 40 percent of households couldn’t cover an unexpected expense of $400.

 

Similarly, most of us will also come across numerous unexpected expenditures throughout the year, such as medical bills, car repairs, and nights out with friends or family. Having an emergency fund can come in handy during such unforeseen situations.

 

Level #2 – Earn Enough to Save & Enjoy

This level is more about enjoying your life and having the wealth to do so. There’s a huge sense of relief when you earn enough money to save as well as do things that make you happy. Bonus points if you manage to have extra cash at the end of the month.

 

This extra cushion can be utilized to bring your financial freedom date closer. Of course, this is with the assumption that you avoid spending it on an enhanced lifestyle.

 

Level #3 – Make Work an Option 

Accumulate and save enough wealth so that you can easily quit your job (temporarily, of course). Remember, financial independence and freedom are all about making employment an option. Saving enough wealth to quit your work for good is a significant undertaking.

 

However, to be able to take some time off from a job (with the help of saving) is a huge jump in that direction. Now, this doesn’t mean you should quit your job, but it is certainly is a good feeling to know that you can. In your time off, you can perhaps explore an exotic country or work on a hobby you love. The other option is to deposite the cash into your emergency fund.

 

Level #4 – Increase Time Freedom

Many of you might desire more flexibility with your schedules. It’s crucial to note that financial independence and time freedom go hand in hand. Together, they’re about leaving the never-ending hamster wheel to spend more time with your loved ones, following your passions while ensuring you won’t completely go broke doing it.

 

It could result in the form of more flexible timings, paid time off, or perhaps occasionally working remotely. Believe us, knowing that you won’t have to take a day off from work just so that you can play football with your kids or maybe visit the doctor can be a huge benefit for some.

 

Level #5 – Accumulate Enough to Retire Well

Assuming you’re doing pretty well financially and are content with your present standard of living, think about what you’d need to sustain this exact standard of living when retirement hits? Knowing you’re on the right path to accumulating a nest egg that supports your lifestyle (and your family’s) is a huge win. Kudos those who’ve already gathered enough assets, or alternate streams of income, to be in a position to retire well.

 

Happiness and financial freedom are two different sides of the same coin. Therefore, take a closer look and determine where you stand on the abovementioned levels of financial freedom. Use it as a driving factor to keep you motivated and moving towards your chief financial goals.

How Can We Help?

Wealth Freedom Group can help you build a happy, stress-free family by gaining control of your time and building wealth. Like you, we’re a group of people who want to enjoy a fulfilled, happy family life while ensuring we build sufficient wealth for the years to come.

Our services are designed to ensure that we meet the demands of family first millennials to ensure they live a “today’s lifestyle”. The lifestyle requires time freedom and wealth freedom to grow a happy family.

 

Hence, we have divided our services into two distinct segments: (a) Time Freedom, where members learn how to gain control of their time, satisfying the happy family needs and (b) Wealth Freedom, where members are coached, advised and trained to build and manage wealth, ensuring time freedom is maintained.

If you have more questions regarding financial freedom, feel free to reach out to us at 1-954-245-1551. We’re also available for assistance at hello@wealthfreedomgroup.com.

Remember, the success of your future life depends on the choices you make today. Hence, be ready to take that smart decision NOW!

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