Earning money is something that is on the list of objectives or dreams of almost every person. It is financially comfortable to have sufficient cash on hand to cater for your daily needs without borrowing money. Here is a wise way to invest and achieve your goals in the current challenging market.
What is Financial Freedom?

Financial freedom implies that one does not have to worry about how to make ends meet, financially meets his or her expenses. For this, you should be able to encase money, make the right investments and learn how to spend.
Set Clear Financial Goals
The first concept that needs to be understood in terms of financial freedom is what it means to the individual. In the following, the SMART objectives are as follows:
Specific: Know what exactly you want; be specific (for example, want to save for a house).
- Specific: Your goal should be specific so that you are easily able to measure your success with it.
- Achievable: Set realistic goals.
- Relevant: Your goals should matter to you.
Setting goals in your life assists you in making good and wise investments that correspond with other goals in your life.
Create a Budget
Budgeting enables an individual to control his or her expenditure. One of the ways is to split your earnings into three splits: 50%, 30% and 20% out of the total take-home pay.
50%, 30% and 20%
- 50% for needs (like rent and food).
- This was true because when Keen was performing slightly better in sales of necessity, it was lagging behind in sales of wants, such as entertainment and dining out at only 30%.
- 10% for saving and paying off some debts, 20% for investing in the business, 15% for marketing, with 5% for other miscellaneous expenses.
Daily, weekly, monthly, and annual checkups of the budget should be made to ensure that it is well on track.
Build an Emergency Fund
However, one must keep in mind that life is full of uncertainties therefore one should always be prepared for the worst through saving for any emergency. It is advisable to preserve from three to six months of living money in an individual’s savings account.
Smart Investing Tips
The only way to become wealthy is through investing. Here are some simple strategies:
- Diversification: avoid the concentration of funds in a single investment. Divide it in various forms of securities such as shares, fixed deposits and properties among others. This way, if some of them decline in value, the other might within the portfolio to compensate for the loss.
- Stocks: Stocks are relatively more rewarding than bonds as it provides a prospect for good returns but comes with high risks.
- Bonds: It is usually less risky than the stocks and the returns are fixed and paid at a regular interval in the form of interests. It can be useful to those whose target is to have constant and predictable returns with lower danger levels.
- Index Funds: For those that may have low risk tolerance or not much experience with investing then perhaps going for index funds may do you well.
Manage Debt Wisely
Coined high interest means that the money borrowed takes time to be repaid so if one has such debts, they might slow down their path to financial liberty.
Credit cards should be considered as the next candidate to be paid off as they have very high interest rates.
You could go for the snowball method where one pays the minor debts and conquer the method where one pays off debts with higher interest rates.