Being able to finally achieve financial freedom is everyone’s major goal. But, where should we start first or what is the first thing that we should do to attain it?

Financial freedom simply means having enough savings, stable source of income, financial investments, and cash on hand to afford the kind of life we desire for ourselves and our loved ones.

Financial freedom also includes being financially secured — and being insured is one of the ways in order to have financial security. Being insured gives one a peace of mind knowing that if anything happened to you, your family’s financial security will be supported by your insurance.

According to Antonette Aquino, a licensed Financial Advisor, financial freedom planning includes four steps — create; this is where you create or find your source of income. It can be from a job, a business, among others. Handle; this is where you handle the money you have saved up from the income you’ve earned. According to her, you can build financial habits by saving, managing your debts, tracking your expenses, and learning how to budget. Protect; in order to establish handling your money well, you also need to protect your wealth. This includes building your emergency fund, getting yourself a life insurance policy which you need to prioritize because the younger you are, the cheaper the insurance policies are. Grow; after you established protecting your wealth, you can now proceed to growing it by putting to investments that will make the money work for you.

Why do people fail of attaining Financial Freedom?

There are different reasons why people fail to achieve financial freedom, one of these is spending more than what you are earning. In order to change that bad habit, you need to know your current worth, and prioritize your debts and needs. Live below your means — always be frugal when deciding to purchase something; and do not be afraid to negotiate or look for better offers.

According to a financial expert, choosing the wrong option is also one of the reasons why most people can’t achieve financial freedom. Most of us prefer the career path because of the money-making opportunity instead of choosing the career of our interest. Of course, it’s good to choose the path where you can earn more. But you should also consider a career whereas you can see yourself happy and interested. Because If you don’t like the work that you have, then you may not grow in your career. And this will become a hindrance from you having a stable source of income.

The fear of taking risks is also why people fail to reach financial success,

Successful people involve taking risks. If you don’t embrace risk-taking, you may want to rethink being financially free.

Founder and CEO of Amazon Jeff Bezos once said, “I knew that when I was 80, I was not going to regret having tried this…I knew that if I failed I wouldn’t regret that. I knew the one thing I might regret is not ever having tried. And I knew that would haunt me every day.”

Indeed, nobody can really be sure if risks will really pay off, no matter how adamant we may be. But this should not stop you from taking risks. If you want yourself to be financially stable, risks are necessary.

It’s okay to be contented, but always strive yourself.

Staying into your comfort zone can probably one of the hindrance for one to be financially independent. Most of us settle in having a single job that gives us enough income to provide for our needs, Of course, it’s okay to have a job to support you financially, but this alone won’t help you reach your goal of achieving financial freedom. You need to think about having side hustle, investing, or opening up a business, which can give you extra income.

Achieving financial freedom is utterly possible for all of us, most especially at the young age as we have more time and opportunity to help us reach it. The key is creating a realistic plan; from a short-term to a long-term plan in order to achieve your goal, and get yourself committed to the plan. Lastly, take care of yourself and remain healthy.