How you can achieve financial freedom in 2022?

To start your journey to achieve financial freedom in 2022, there are a few steps that you should adhere to:

As is the first step for anything, make a plan. Creating a financial plan has several benefits. First, it helps you admit to yourself that you have future goals that need to be looked after. Second, it helps you map out a tangible solution to achieving said goal.

To make a financial plan, it is prudent to begin with taking stock of your current financial scenario. The easiest way to do this is to take note of your income and expenses. By mapping this data out, you get a better understanding of where your money is going. This will paint a realistic picture of your finances, giving you a better idea of what should change to get to financial freedom.

Post this, you should set your personal finance goals and assign a budget for each. This could be anything including property, vehicle, vacation, education expenses for your child and so on. Set a certain amount of money aside for each of your goals. You can also look at the kind of investment opportunities available in the market. After all, just saving money isn’t enough; your goal should be to grow your wealth.

The path to good returns, whether in your financial life or otherwise comes through disciplined living. Creating consistent wealth is possible only if you maintain your habit of saving and investing at regular intervals. It is easy to get swayed by unwanted expenses but maintaining a habit of saving and consistent investing will ensure you can get better returns in the long run.

This practice should begin as soon as possible. If you are in the early stage of your career, try to set aside at least 40 percent of your monthly salary into savings or your preferred investment portfolio. Later, other obligations will call your attention, and this percentage will drop to around 15-20 percent of your monthly income. By consistently keeping this money aside for investments, you ensure a creation of a financially stable nest egg in your future.

Uncertainty seems to have become the norm in recent years, giving rise to financial anxiety and impulsive decisions. It is extremely important to stay updated with all the new changes in market events, but it is even more crucial to keep a cool head about it. Impulsive behavior is the enemy of consistent wealth creation. You must ensure you stick to your goals without getting influenced by the situation around you. Take the example of legendary investment guru Warren Buffet who stuck to his value-oriented strategy in the face of the dot-com boom of the late 90’s. This helped him in the long run when he avoided major losses in the 2000’s, when tech startups crashed, sending the financial world into disarray.

As mentioned earlier, we’re living in uncertain times. This gives you the perfect impetus to account for such unexpected scenarios and make provisions so you can avoid pitfalls. Other than the macro-factors like Covid-19 and recession, problems like medical emergencies can derail your financial stability in seconds. That is why it is important to invest in insurance plans that can help you maintain your financial freedom, even in the face of such issues. It is crucial that you begin your insurance journey as early as possible. This is because premium prices are lower when you are younger. As you grow older, your age and other health factors will increase premium rates exponentially. Insurance cannot be treated as an option; it must be your priority.

If you follow these 4 steps and stick to them with determination, your journey to financial freedom can become much easier. Always remember, mountains are not moved in a day. So, stay consistent, committed, and don't be disheartened by drawdown you face along the way, because the window to financial freedom might be closer than it appears.