How to start moving towards financial freedom

Have you been under stress lately because of debt? Do you have sleepless nights thinking if financial freedom is really a myth? Well, the next few sentence are most likely to debunk the idea that financial freedom is a myth.

Financial Freedom is an aspiration for many. For those plunged under heavy debts, it is a dream far from reality for many. Be it college loans, or loans for business, being under debt comes at a price of constant battle on how to repay it back, and be at par. However, it is not as hard as it seems.

The mental peace associated with achieving financial freedom is second to none, and it can be achieved by applying basic personal finance principles. Remember! Never consider any step you take for your financial freedom as meager. Here are a few steps that are definitely going to help you inch closer to far-fetched dream of financial freedom.

• Personal Budgeting - A lot of individuals often overlook the importance of personal budgeting when it comes to saving money. There are hundreds of apps out there that can the user to track down expenses that can be cut down upon. In case you don’t already have a personal budgeting app, get one now. Start noting your expenses, and then figure out which of these expenses can be cut without compromising on your lifestyle.
  
• Passive Income Streams - This is perhaps a blessing in disguise for all those who are stuck at dead end jobs, and cannot quit them because of financial constraints. Passive Income streams are helpful to get money rolling in, at a certain part of the day when you are free. If you have a skill, you can market it and become a freelancer. Earn part time, and get going. There are numerous platforms out there that offer gigs for various different skillset. If you don’t have a skill, learn one now. It’s about managing your time, and making better use out of it.
  
• Save and Invest - The golden rule states that all earned income should be divided in 60/20/20 rule. Out of income that you earn, it is highly advisable to spend no more than 60% in general living expenses (because let’s face it, we all have bills to pay), 20% as wants (you deserve it!), and the remaining 20% as savings to repay debt.
  
  Figure out a plan that works best for you. Stick to the plan, and set aside money right when you receive your paycheck.
  
• Invest smartly - Savings and investments can be tricky, especially if you do not have any clue how the Stock Exchange works. However, there are plenty of investment options that guarantee a stabilized return. Consult a commercial bank, and find out your options. It’s better to make use of the money you save, rather than leaving it lying around.

There is no doubt to the fact that financial freedom can be hard to achieve, if one seems to be trapped in a debt cycle. However, rest assured that effective personal finance management will definitely make it easier for you. Spend wisely, and plan your budgets. That is primitive to achieve financial freedom, and last, but not the least, do remember that persistence, and perseverance is the key.