Introduction – Type and definition
Human life needs multiple things to survive and grow such as food, clothing, shelter, vehicles, knowledge and skills. Generally, the necessary items are acquired by spending a few units of money on them. Apparently, the abundant availability of money units to buy required things gives an individual financial freedom; on the contrary, the scarcity of monetary units for the purchase of necessary items can lead someone to financial dependence/financial subjugation. Realistically, it is livelihood that gives an individual financial freedom.
A person who has means of subsistence enjoys financial freedom. What is sustenance? In 1991, Robert Chambers and Gordon Conway provided the first elaborate definition of livelihood: “A livelihood is a means of earning a living. It encompasses the capabilities, assets, income, and activities of people necessary to secure the necessities of life.” Furthermore, they proposed the concept of sustainable livelihoods: “A livelihood is sustainable when it enables people to cope with and recover from shocks and stresses (such as natural disasters and economic or social upheavals) and improve their well-being and that of future generations.” without undermining the natural environment or the resource base. Simply put, for financially independent people, livelihood or income from assets, work or business is greater than expenses and the income stream is stable.
The absence of support means financial dependence. It happens for two reasons: personal and interactive. On a personal level, the very denial of an independent living pattern is a cause of poor livelihood. At the interactive level, the total denial of the interdependent life pattern is the reason behind insufficient sustenance. Financial freedom is the state of having enough personal wealth/income to independently purchase necessary items and desired goods/services.
achieve financial freedom
Financial freedom is the prerogative of every economic agent. An economic agent is one who regularly participates in lucrative activities such as work, import, export, manufacturing, teaching, training and consulting. A successful economic agent design ELEGANT (yesspecific, METEReasy, HASreadable, Rrealistic and Tbound) financial goals. There is a five-step procedure for setting and achieving financial goals:
1. Define exactly what you want in each area of your life; for example, specify savings for children/old age or income-generating assets. The optimistic outlook on life is vital to the effective specification of financial goals. (Specific mindset towards the paraphernalia of life)
2. Pursue only measurable financial goals, eg it is wrong to pursue wealth without an exact income stream specification. Write down the necessary actions or work plan to achieve the measurable goals. Prepare the work plan/action plan clearly, thoroughly and concisely. (Measuring mindset toward execution)
3. You have now made a list of all the actions that you might consider crucial to achieving your goals. Taking action immediately is decisively important. (Achievement is the result of proactive behavior)
4. Do something every day that moves you toward achieving your goals. You can find obstacles, detractors and limitations. Manage them wisely and maintain momentum and morale during upcoming situations or challenges. (Consistent behavior towards realistic goals)
5. Set a definite deadline for tasks. If it’s a long-term goal, break it down into sub-deadlines and arrange the items in the proper sequence and priority. It is very important to follow the maxim, put first things first. A goal may be unattainable due to some reasons, check the goals to avoid wasted efforts. Abandonment is, at some point, the best strategy towards various surreal goals. Correct abandonment saves money, effort and time for some achievable goals. (Time efficient behavior)
Absolute Basics of Financial Freedom
Human beings are the epitome of the Divine Scheme of Creation. God granted us many powers, latent and patent, to enjoy life and conquer his universe for the benefit of humanity. The ingrained productive capacity to earn is a natural gift from God. The natural productive capacity can take three ways through proper nutrition, that is, entrepreneurship, consulting and manpower. Labor is the ability of an individual to perform economic work efficiently. Consulting is the ability to give professional advice/doable idea to someone about a cheap job, honestly. Entrepreneurship is the ability of an individual to effectively innovate/realize a business idea. Innate productive capacity is wasted or damaged due to erroneous beliefs or heinous crimes, whatever the reason, conceptual or practical, dormant or depleted productive capacity can be recovered or replenished through concerted economic efforts and money-earning skills. Featured replenishment tools are learning new income techniques, applying acquired skills to earn income, and networking with relevant individuals or institutions. Simply put, it’s learning, winning, and networking during the economic struggle. An important dimension of productive skills is investment talent, it is inescapable for business. However, investment talent is not a natural productive capacity, but is based on earned capital and the derivation of natural productive capacities, that is, entrepreneurship, consulting and labor. An effective investor is supportive during multiple financial crises, pragmatic toward business opportunities, and precise toward a company’s accounting jobs.
Main obstacles in the way during the financial struggle
A job for monetary benefits is called economic work; gives monetary independence to individuals. The economic works are innumerable. The very selection of a defined economic job depends on the personal choice of an economic agent. In addition, financial intelligence is necessary to carry out multiple economic works, successfully. Financial intelligence is an ability to differentiate between potential economic opportunities and economic threats. Generally, an economic work makes units of money stipulated for personal use. An effective economic work must require three vital steps: acquisition of financial education, aspiration of financial goals and application of financial techniques for financial goals. The main obstacles in the way during a financial struggle are: financial idealism, lack of discipline, fear of failure, get-rich-quick mentality and procrastination.
Final remarks
The path to financial freedom is predominantly a sustainable way of life. The decisive personality elements of financial sovereignty are moral sense, independent mindset and interactive behaviour. The aforementioned personality traits attract financial independence. Financial independence means effective planning, strategic execution and patience in the fight until the logical result of the fight does not appear.
