How to get financially free in 2023

What does it mean to be financially free?

It refers to having enough money to live well without having to work (for someone else). Own your own business, take early retirement, and savor the finer things in life.

I've worked for numerous corporate organizations since I was 34, and I've come to realize that life is meant to be enjoyed rather than spent working 8, 10, or more hours a day to maintain the way of life we've established.

It is true that you are bound in golden handcuffs when you work for someone else. You put in work to support the CEO's and the company's investors' vision. What if you had individuals helping you achieve this financial independence working FOR you?

This is a general description because every person's life is unique and their priorities will vary.

Create the right budget – Each guru has their own detailed methodology for how you should budget. But actually, the first step is acknowledging that you need to have some form of budget in place because this year is really different from last year or from two years ago. The extras and amenities are the first significant expense you can manage (the fun stuff).

Good and bad debt — Credit card debt, which carries a high interest rate, is well known to be a financial disaster for anyone. Real estate investors, on the other hand, are aware of how to use debt in properties to buy more properties. One investment helps to fund another. Eliminate your highest interest debt, which is often your credit cards and student loans.

Save and invest regularly —The long-term game is what makes investing so beautiful. Consistent saving for the future through investing can produce exponential returns. Consider Bitcoin (I am not a financial advisor, this is just an example). Bitcoin has climbed over the years similarly to the S&P 500 as the world has continued to move deeper into the digital age. In most circumstances, your portfolio will have grown if you continuously invest $50 each month for the next two years. Your future financial security will be made possible by your patience and refusal to withdraw from the investment. Before making an investment, consider the risk involved.

Increase your income (Side gig) —Sounds like the world's simplest thing. While a W2 may not be the key to your independence, it is a fantastic starting point. What do you enjoy doing, learning about, coaching, reviewing, writing, etc.? Do what you enjoy doing while considering how to make money from it. $100/m > $200 > $500 > $1000. Would you see a difference in your life from that sum? What if you could fund your investments with that side job while keeping your W2 job to pay the bills?

Live below your means —This one can be the most challenging at times. The cost of a routine supermarket run has increased by 25–50% due to inflation. lottery tickets are simply not necessary. Are there digital accessories for video games What do you enjoy purchasing but don't even use or won't need "tomorrow"?)

Understand your spending habits —If you want name brands for everything, be aware that the price premium ranges from 10% to 25%. I like buying brand-name consoles, clothing, and televisions. I don't care about store brand versus Tylenol and Nyquil, though. All big events, including plays, concerts, dining establishments, and shows, have seen their prices rise.

Build an emergency fund — Although I don't particularly like this one, you must maintain a reserve fund in case something goes wrong. There's a good chance that anything will eventually break or be expensive. (A loved one is hospitalized, a pet becomes ill or requires surgery, or a vehicle breaks down and costs $1,000 or more to fix.)

Create and work towards specific financial goals — You can get where you need to be (and want to be) by defining goals and decomposing the data. When compared to someone who merely wants to enroll their child in after-school activities, your number will appear very different if you want vacations six times a year. Your attention will be drawn to those objectives by solid data and figures.

Educate yourself about personal finance and investing — Who is more familiar with your expenditures and education than you? No one. As children, we are not taught about personal finance because the educational system is set up to keep individuals in W2 jobs. With the help of the digital world and enough dedication and time, we can learn anything.

Seek professional financial advice if needed — Many times, it's preferable to test your ideas on someone who makes living providing financial advise. They typically have rigorous rules that keep their clients in the black and prepare them for their future financial requirements.

Invest in yourself — if you want to learn anything and everything, be it a talent, technique, life hack, etc. If it enables you to improve what you already do, enables you to educate someone else, or enables you to make the most of what you already do. Twenty years ago, we lacked the same flexibility. How are young children able to know so much? You have access to technology. You can find the answers by asking the questions.

In Summary:

We are not required to lead the same lifestyle every day. I'd rather go to work for an organization that pays me well, teaches me a skill that will benefit me in another area, or gives me the opportunity to contribute to society and improve the world.

Anything you want can be accomplished. In 2023, it will be finished. Make a commitment and a plan. Expecting things to go as planned is unrealistic since that is not how life operates. It is comparable to the stock market (up and down).

Make 2023 your year.