How to achieve more financial independence or freedom

Learn some key information about a fashionable term
In financial terms, there are various ways of being free. Are you tired of having to constantly check your account balance, while worrying about whether you will be able to pay the next bill that arrives? In this article you will find some information that may help you get closer to achieving your long-awaited dream of full financial independence and freedom. This is one fashionable term you should not allow yourself to overlook.
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What is financial freedom?

First of all, we should make it clear that in financial terms, being free or independent does not necessarily mean being rich. In other words, a millionaire can have financial freedom in the same way that a regular employee or self-employed individual can. Financial independence can be achieved in a simple manner, by pursuing realistic goals while trying to maintain a level of economic health that will prevent an unexpected expense from seeming like the end of the world.

A good indicator of financial freedom is the ability to cover your basic personal needs while still having a little left over. Although there is certainly a material aspect to this, it also involves a certain type of attitude towards life. Having financial freedom requires a solid understanding of three things:

  • What is the goal you are trying to reach?
  • What are your dreams and your necessities?
  • How much are you willing to do in order to achieve your goal?

If you want to gain financial freedom you must consider these three questions as part of a single equation, since in some ways one thing will always lead to another. You will also not get far without having a clear goal, and you will soon have to determine whether or not achieving your goal will actually be possible.

And in practice? If your goal is to travel the world while staying in 5-star hotels, you will need a different plan than you would need if your goal in life is, for example, to start a family and enjoy your day-to-day life in a major city. Your goals themselves are what will determine how much economic effort you will have to dedicate in order to achieve them.

The world of income

Financial independence is very closely linked to the sources of income available, which in turn will vary depending upon each particular case. Here you can learn about ways to optimize income in two very different cases, which depend upon the profile of each type of worker:

  • Freelancers. A self-employed individual must dedicate many hours to making progress with his or her business. However, there will also be a need for logistical and financial support. And if this is the case, a good way to obtain such support is to start by producing a detailed business plan. This plan must include a clear and objective statement regarding the purpose of the business, must allow the viability of the business to be assessed, and above all, it must include the steps to be taken in order to confront the challenge.
  • Employees. Nobody has better savings options than employees, since they know how much they will receive as payment for their work even before the work has been performed. This allows an employee to plan out his or her expenses down to the last cent, then make decisions based upon the results of this planning. If you analyze the account entries for your expenses and find some things you could do without, you can eliminate these expenses and instead transfer that money into a savings account, for example. There are also some interesting software tools or features that let you perform this calculation, which can also help you achieve your long-awaited goal of financial independence or freedom.
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Monitoring as a tool for success

Of course, in some ways it hardly matters how much you earn or spend, because what is really important for any financial calculation is how you manage this money. Measures used for monitoring will therefore become your most reliable allies on your path towards financial freedom.

The most interesting way to keep track of your expenses and income is now available on your cell phone, thanks to the new expense control feature BBVA Bconomy. This new feature lets you perform a detailed analysis of your expenses, which you can then use to find ways of reducing them, making it easier to save and achieve your goals. You can take advantage of all of the available services from any location, which means that you can always have more information available about your money.

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