We have all heard the saying that “money makes the world go round.” And we have also all heard the phrase, “Money isn’t everything.” So, which one is it? The truth lies (as it often does) somewhere in the middle. We do need to understand financial matters to fulfill our dreams and desires. Still, we also need to know how not to let economic issues rule every ounce of our existence, personally or professionally.
Attaining financial freedom is an objective for most individuals, but how can we promote this significant value in our lives/organizations? Some of the best ways to create personal financial freedom are small, manageable nudges that help you to shift your mindset, build confidence, and take action.
Here are some do's and don'ts to help you get started:
Do: 1. Shift your horizon Rather than seeing financial freedom as the end goal, try shifting your mindset to be more about the small steps you can take to move towards those goals. Find someone to help you understand more about finances, set small, attainable goals together, and then increase them as you meet them.
2. Trust yourself, but not too much Think about what systems you can put in place that aren’t intimidating and are ultimately things you know you will do. Maybe look for strategies that help you without doing anything—like cash-back incentives or setting up automatic transfers or investments before you cash your paycheck.
3. Create opportunities for choice The sure ticket to financial failure is feeling like you don’t have any options. When setting up systems, offer yourself alternatives, such as I will either put x amount of money into my savings each month, or I will limit the number of times I eat out for lunch. Instead of “forcing yourself” into behaviors, you’ll find that you’re nudging yourself into lifelong healthy habits.
4. Be honest about what you do and do not know. Then, be honest about what ways will work and not work for you to learn those missing pieces. We live in a time of infinite information. Sign up for a financial literacy newsletter, and check out the many radio shows, podcasts, or television shows dedicated to financial freedom. There are tons of tips and strategies available online.
5. Share your thoughts and knowledge As an employer, ensure you share the following three areas with your employees: understanding salary data, preparing for retirement, and informed financial behaviors. As an individual, tell others what has worked for you. We all have tips for finding financial freedom and our barriers to achieveing it. Share a tip that has worked for you or a habit you need help breaking.
Don't
1. Don't view financial freedom as an unattainable end goal: Instead, focus on progress and the journey towards your financial objectives.
2. Don't let money rule your life: Use it as a tool to enhance your life and pursue your dreams without letting it dominate every aspect of your existence.
Achieving financial freedom requires a combination of knowledge, mindset shifts, and action. By implementing these strategies, you can gradually move closer to your financial goals and enjoy the benefits of a more secure and fulfilling financial future. Remember, it's not about letting money rule your life but instead using it as a tool to enhance your life and pursue your dreams.