Those who are able to achieve financial freedom start from the same place and follow a similar journey. Like children, people who have achieved financial independence began from a place of complete helplessness and progressed along a similar path. Their progression may include crawling, walking steadily, running, and even jumping. Although their paths may differ, the goal of financial freedom is the same for each person, and they all have certain milestones they must pass in order to get there.
Succeed With How To Achieve Financial Freedom
When it comes to achieving financial freedom, there are two common mistakes that people often make. One is miscalculating their needs. This is especially common among DIY investors. Assuming a moderate inflation rate of 6%, a household of four today will require around Rs 2.87 lakh in 2051 in order to live comfortably. In that time, milk will cost nearly three times as much, and a loaf of bread will cost almost 200 dollars.
Another common mistake is using your assets to reach financial freedom. Unlike saving for a rainy day, assets are a great way to build a large emergency fund or secure a long-term retirement. Unfortunately, the process can be quite difficult. Many people have assets worth more than $1M and cannot sell them for a reasonable amount. It would be disastrous to lose a job or incur major expenses, but by investing in your 401(k) or other account, you can begin the process of becoming financially free.