How to Achieve Financial Freedom in Nigeria

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Some of the Steps to Achieve Financial Independence are;

  • Make Every Effort to Avoid Accumulating Consumer Debt.

This is one of the primary reasons why the majority of people will never escape their cycle of poverty and will almost never attain any level of financial autonomy.The use of credit cards to make purchases, taking out loans for things like payday advances or automobiles, and generally spending money that you have not yet truly earned are all examples of consumer debt. As soon as you become dependent on something, it is extremely difficult to break free of that dependence and achieve monetary autonomy.

When you use your credit card to make purchases, the money you spend does not belong to you; instead, it goes to the credit card company and the bank, and you end up spending it on things you do not need most of the time. This is one of the things you need to realize. Figure out how to get rid of debts with high interest rates and make your money work for you rather than the banks by learning how to invest it.

  • Don’t Make the Mistake of Trying to Keep Pace With Your Neighbors

In other words, you should pay no attention to the Joneses. In many cases, one of the reasons that we get into a financial crisis and are unable to make our money grow is because we want to maintain a level of living that is comparable to that of our neighbors.

Simply for the purpose of impressing other people, we will purchase items that we have no use for, continue to reside in homes that are beyond our financial means, and enroll our children in schools that are far beyond our means.

All of these things ultimately deplete our resources and keep us in a state of permanent financial dependence. Do you want to improve your financial stability?

Get rid of the mentality that you have to compete with your neighbors. Impressing yourself should be your primary goal in life. You will be able to live within your means and save money for future investments if you do it this way.

  • Reduce your spending, beef up your savings, and increase your investment activity

The majority of us are living way beyond our means, and as a result, our financial situations are in shambles. We spend money on things that we do not require and even go into debt so that we can lead a life of luxury that is incommensurate with our income.

That is not the way to achieve genuine monetary security. Keeping track of your expenditures is necessary if you do not want to live beyond your means.

Second, you need to figure out how to reduce wasteful spending so that you can put that money toward savings and, eventually, investment. In this way, you can gradually build up your finances from the ground up and eventually achieve financial independence over the course of time.

  •  Ensure That You Pay Yourself First.

It is always recommended that you put yourself first once money comes your way, even though this may come off as a bit self-centered and confusing to others. As a result, you need to make it a top priority to put money away for the savannah before you can even consider allocating funds for other concerns.

Put money aside first before you pay your rent, your utility bills, or even your grocery bill. Your savings are of the utmost importance. You have to put that to the side first before you can move forward with the remaining money.

That is the way to make sure that you do not find yourself in a situation where you are struggling to save money after you have already begun spending the money that you had from the very beginning.

  • Put Your Money Into Assets That Will Generate Income

After you have established the habit of paying yourself first, you should avoid letting that money accumulate in a savings account for any length of time. Instead, put it to better use by investing it in assets that will generate income for you, such as solid stocks, treasury bills, bonds issued by the federal government, and even solid mutual funds. In this way, you give your money the opportunity to work for you in the long run, as the return on investment continues to trickle in.

  • Keep Investing

People who are financially secure are those who do not simply save money for the sake of saving money; rather, they are those who are aware of the fact that in order for savings to have any value, they must be invested in valuable assets that will produce a positive return on investment over the long term.

As was mentioned earlier, purchasing quality stocks is one way to transform your savings into an investment portfolio and ensure the growth of both your assets and your financial situation over time.

Putting money away regularly and contributing to a retirement account is yet another strategy to consider. In this way, you can avoid the stress of having to struggle during your retirement years in order to maintain a decent quality of life.

  • Obtain a job that requires only part of your time

One of the challenges that people face on their path to achieving financial independence is becoming dependent on a single income stream. You need to think about what might occur if that one source of income suddenly became unavailable in addition to the fact that it is highly unlikely that it would enable you to live a decent life and still put money away for an emergency situation.

You should make sure that you have a part-time job on the side, as this will give you the opportunity to have spare money and prevent you from relying entirely on your 9 to 5 salaried job for both your day-to-day needs and your savings.

  • Having the Capacity to Have a Flexible Lifestyle

Maintain a lifestyle that is adaptable enough to ensure that, even in the event that you are laid off from your day job, you will not suffer a severe financial setback before you are offered another employment opportunity.

This still contributes to the fact that you live a frugal lifestyle and do not live beyond your means. You should not consider raising your standard of living, even if you receive a pay raise; instead, you should put more money away in savings.

You can guarantee that you will always live within your means and will not go overboard financially even when times are tough if you lead a life that is flexible.

  • Find a Partner Who Balances You Out

Even though many people may wish to ignore this step on the path to achieving financial independence, you cannot avoid it if you ever hope to arrive at the point where you can call yourself truly financially independent. This is one of the inexorable steps that must be taken.

This is due to the fact that it does not matter how proficient you are in the management of money and investments if you do not have a spouse who is frugal and inventive, you will not accomplish very much in the way of success.

It will be more like fighting in quicksand than anything else. It is almost certain that if you make a mistake and marry the wrong person, the emotional, financial, and social toll you endure in that perilous marriage will take its toll on your finances, and ultimately on how you secure your financial freedom. If you make this mistake, it will affect how you are able to secure your financial freedom.

This is due to the fact that while you are working hard to build your life and your future, he or she is working hard to pull you down financially and flush your money down the drain by making impulsive purchases. Therefore, choose your partner with caution. It has the potential to be the deciding factor between a life of financial success and a life of abject destitution.

  • Explore and Maximize Opportunities

The ability to make the most of opportunities and investigate various investment choices when they become available is frequently the determining factor in determining whether or not a person is wealthy.

You need to be actively saving money and have an understanding of the factors that contribute to the formation of wealth. Earnings do not equal wealth. Even if you receive an income from an employer, at some point you will need to consider how you can create your own wealth by making the most of the resources that are already at your disposal.

Make the most of the opportunities that present themselves to you and use them to your advantage. Put aside some cash, purchase some assets that will provide you with a steady stream of revenue, then take a seat, relax, and observe as both your investment and your life are transformed. Having your money work for you rather than the other way around is the fundamental requirement for achieving financial independence.

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