What does true financial freedom actually look like? In my own life, I’ve had massive financial ups and downs, and I’ve learned from those experiences. To me, financial freedom isn’t not just about how much you make, but how much you keep and what you do with it.
HERE ARE 7 TIPS to Creating True Financial Freedom
1. A Man is not a Financial Plan
If you’re waiting for a knight in shining armor to come and rescue you, let’s stop that approach to life right now! You want to marry for love and aligned values in life; not for financial comfort! Never expect your husband or your spouse to handle everything for you…not your finances or your happiness!
To create financial independence, you cannot be dependent on anyone else. It doesn’t mean that you don’t have other people in your life, but they’re part of your life because you want them there rather than need them there.
2. Become an Awesome Goal-Setter and Goal-Achiever
Get clear on what you want to create. Not just in your finances, but with life in general. Goal-setting and achieving are what will help you in your life. I know from my own experience that it’s hard to hit a moving target but impossible to hit an invisible one.
Get clear on what that looks like in your life. You can find a quick video on how to set goals across all eight lanes of your life here.
3. Decide how to create your income stream for financial freedom
There are lots of options for creating your income stream. Any of these are good, but you need a plan here, too:
- Work a 9-5 job
- A 9-5 plus a side hustle
- Build a business from the ground up
- Multiple income streams – active and passive
When we think of financial freedom, most people focus on only one lane – the how to make the money. It’s only one piece of the puzzle and there are six other steps to complete it.
You can watch the original vlog below, too!
4. Become financially wise and achieve financial freedom
Most women today are financially illiterate. Instead, become confident in the world of finances. It’s not a foreign language that others have learned and you haven’t.
You have to learn it too, and there are so many resources you can access for free to teach yourself about the laws around compounding interest and how to get your money to work for you.
Here are some book recommendations to get you started:
- David Bach – The Finish Rich series
- T. Harv Eker – Secrets of the Millionaire Mind
- Tony Robbins – Money Master the Game
- Dave Ramsey – Total Money Makeover
You also should aim to choose wise investments over frivolous spending. When I first started making serious money, I definitely was not financially wise. I didn’t grow up with much financial knowledge, and I didn’t know anything about building financial freedom, even though I had learned how to make money.
I went on wild spending sprees, and I didn’t know that I needed a sustainable savings and investment plan. And, I learned firsthand that what many women are doing with their money – buying expensive cars and designer handbags without the cashflow to back it up – is stupid and irresponsible.
External appearances, your image and what the world thinks of you don’t equate to financial freedom; it’s living on false pretenses. It’s the opposite of freedom – actually a self-imposed prison – and not what you’re trying to create.
5. Prioritize Self-Love and Self-Care
True self-love and self-care involve doing the hard things. We need to address the things that make us feel uncomfortable in life – things that people usually prefer to avoid, including preparing for disasters. This includes things like:
- Getting your will written
- Setting up a trust to take care of yourself and your family
- Finding a life insurance policy (one for you, one for your spouse)
It’s important to know that not all life insurance policies are the same, so you need to pick the right one for you. Take the time to learn the differences, and you’ll see it’s straightforward.
If your spouse does handle the finances that’s ok, but you need to be able to take over intelligently, if the worst were to happen. Think about:
- The passwords for the online bank accounts
- The key to the safety deposit box
- Where the money is and how to get it (e.g. stocks, crypto, property)
- Your expenses – where does your money go
- Debts, loans and other repayments
Even if you’re not the person managing the finances, plan a money management meeting at least quarterly. Get an update on where the finances are and make sure you know all the important information.
6. Work on your mindset
If you don’t master your mindset, you can’t master money and you’ll never create financial freedom. I have some resources of my own to help you with mindset mastery, which you can find here.
7. Learn to play the long game for true financial freedom
The long game is a sports analogy which means looking at a long-term plan instead of reacting to the immediate situation. Financial literacy and freedom are a marathon, not a sprint.
I read a report many years ago which shared survey results from people who’d been asked to explain their financial plan. The top answer? Winning the lottery. But here’s the crazy part: you’re more likely to be hit by lightning going to buy your ticket than actually winning!
The second answer was ‘collect an inheritance’ and the third answer – ‘win a lawsuit’. It’s obvious that these aren’t plans at all – personal misfortune or hoping for a lucky win won’t give you financial freedom.
You need a strategy and a plan mapped out in your own life on how you’ll create the financial picture you desire. With the long-game, you don’t need a get-rich-quick scheme, and this will work no matter how old you are.
Financial freedom is possible and it’s not as hard as you think. Invest some time to implement each of my seven tips, and choose the book or online resources that will help you. The sooner you start, the quicker you can plan and set goals for financial literacy and a secure future.