Every individual at one point or the other has wished to grow their finances and be financially free, says Tom Gehrmann Colorado Springs. We all strive to achieve certain financial goals every year. Though these goals might differ from person to person, we all aim to live a better life and work towards attaining financial growth and freedom.
To some people, financial freedom is a myth because many have failed to achieve it due to the unpredictable economy and other events. No doubt the pandemic affected the financial decisions that many people made which in turn impacted their financial growth and freedom. Many people couldn’t achieve their financial goals due to extravagant lifestyles, increase in debt, financial emergencies and other financial issues.
The truth is that financial freedom is achievable but there will be a need to have savings, realistic goals, discipline, patience, determination and the right investment. We all want to have financial stability and live the life we want without worrying about the amount in our bank accounts. With good financial decisions which will be discussed in this post, you should be able to bounce back on your journey of achieving financial growth and freedom. You want to position yourself in a place where your money will be working for you instead of you working for money if you want to achieve complete financial freedom. Below are the financial decisions discussed by Tom Gehrmann Colorado Springs, which will help you with your financial growth.
1. Set Realistic and Achievable Goals
Is good to set goals and work towards achieving them. But the question you should ask yourself when setting the goals is how realistic and achievable those goals are. You should not just set goals, rather be specific with what you want to achieve and have a time frame. Examine your present financial situation and write down the amount you know is possible to achieve within a certain period or age. Setting realistic and achievable goals within a short period will encourage you to set and achieve long term goals. And being specific with your financial goals means the possibility of achieving them is very high in comparison to not being specific.
2. Be Discipline with Your Savings and Budget
Having a budget is one thing and staying true to it is another. As you journey towards financial growth, it is better to be disciplined with your budget. You might be tempted to spend beyond your budget for the week or month but with discipline, you can prevent it.
The important thing about long term financial growth is not the amount you invest but how you invest. Being consistent with your budget is very important as it helps you to have savings no matter how small. To help stay more disciplined with your savings you may want to consider automatic savings which will be withdrawn from your account the same day you receive your salary or paycheck. With discipline in your savings and budget along with the right investment, you are not too far away from achieving financial freedom.
3. Create Multiple Source of Income
According to Tom Gehrmann Colorado Springs, business consultant based in Colorado Springs, if you want to achieve financial growth and freedom then you should not depend only on your 9 to 5 job. You will have to look beyond your present job if you are serious about building financial wealth and having financial independence. Just to enlighten you more there are passive income and active income.
The term active income is the most common form of income where an individual trades or exchanges time for money. Implementing active income is fast and one can easily get started but the downside is that you have a limited time of 24 hours a day and no matter how hard you try you can’t go beyond that. For instance, you can become a freelancer. Passive income on the other hand needs you to make a one-time investment of hard work and money automatically keeps flowing in. An example of passive income includes affiliate marketing, investing in stock and others. You should weigh your options and see the one that works best for you.
4. Start To Invest
One of the best ways to grow financially is through investment. There are many investment opportunities to choose from based on your risk tolerance and financial goals. Though it might take time to see significant financial growth with compound interest your finance will increase over time. Don’t just invest but ensure you invest in profitable investment. In case you already have an investment, you may want to consider diversifying your investment portfolio and ensure an annual review. And remember to rebalance your portfolio when necessary.
5. Maintain Your Health and Properties
Ensure you don’t play with your health because as they say health is wealth. As much as you want to grow your finances, don’t forget to stay healthy if you want to enjoy the wealth gathered. It is also important you maintain your properties because it is less expensive to maintain than to buy new properties.
The financial decisions you make today will affect your financial situation later in the future, says Tom Gehrmann Colorado Springs. Financial growth is not easy to achieve but following the list above and being consistent can help you work towards it. You are also advised to educate yourself financially, to be conversant with financial news and various investment opportunities available around you. If you need help regarding any financial issues as a beginner don’t hesitate to contact a financial expert.