The difficulty of the road to financial freedom should not be underestimated. Many people are in a state of financial anxiety and feel that their financial situation is not meeting expectations. Perhaps you've had self-doubt and feel like you're worse off than your peers. However, as long as you have the following 9 signals, it means that you have made progress on the road to financial freedom. **10,000 Fans Incentive Plan
1. Controlling spending is the cornerstone of financial freedom. There is a classic saying that money is earned, not saved. This sentence profoundly points to an important financial concept. In today's society, consumerism can be seen everywhere, and many people are easily influenced by this consumer culture, resulting in profligacy and disregard for financial planning. However, if the fixed paycheck you receive each month is spent lavishly, you will have nothing. The average person's first fortune often comes from saving. Therefore, it is crucial to control your expenses rationally and save your money to lay the foundation for future entrepreneurship and investment. Designer bags and trendy items, while looking like they will make you look rich, are just depreciating items unless they are necessary for your job. So, by controlling your spending and saving your money, you're showing a high degree of self-discipline and not being swayed by consumerism. This is a fundamental signal towards financial freedom.
2. Pay bills in a timely manner. Even if you don't have a high income, paying your bills on time is the right thing to do. In the future, we will face various bills, such as utility bills, rent, ** fees, property fees, etc. Due to a lack of financial planning, some people squander their salaries at the beginning of the month and end up unable to pay their bills, or even rent or fees. This can lead to high interest rates, penalties, or impaired credit, which can affect future financial conditions. Being able to pay your bills on time is a big achievement.
3. Have savings. Emergency reserves with half a year's living expenses perform better, at least not in the event of an accident or job loss. Having savings will ease the psychological burden and make you prepared. It's normal to spend a year or two stockpiling emergency funds, and don't give up because progress is slow. As long as you have savings, it's a good sign.
4. Don't be anxious about money. Have you ever had insomnia due to financial problems? If not, that's a good sign that you have enough money to meet the demand. Some people suffer from insomnia due to financial stress, and you are aware of your finances and know how much money you have at your disposal. You have an emergency fund to deal with the unexpected, pay your bills in normal times, and invest in the future. You are not afraid of money, are emotionally stable, and are able to rest well. A good physical and mental state is a prerequisite for making money, because inspiration and creativity often emerge when we are relaxed, and these are the negative emotions we need to get rid of.
5. Debt management capabilities. Debt is one of the biggest factors that weakens motivation, such as car loans, car loans, etc. But you can try to control them and avoid getting caught up in the mortgage. You may envy your relatives for owning a large and luxurious house, but know that very few people are able to buy a house in full, and there may be huge debts behind it. Therefore, the real wealth is the net worth, that is, the assets minus the liabilities, which is the real wealth. For example, some people frequent high-end restaurants and spend with their cards, but only pay the minimum payment, resulting in arrears piling up and eventually not being able to repay. Therefore, guaranteeing enough cash each month to pay off your debts, avoiding being overwhelmed by interest, and focusing on paying off your debts will make your financial situation better and more stable.
6. Having insurance is an important guarantee. Whether it's home insurance, car insurance, or medical insurance, you can reduce losses in the event of an accident. Insurance ensures that you don't end up with nothing in the event of an unforeseen event. Especially as the breadwinner of your family, you may want to consider purchasing life accident insurance to ensure that your family members are properly compensated financially in the event of your death or injury. Everyone's insurance needs are different, so it's important to carefully evaluate various policies and consult with multiple insurers to understand the terms of different policies. You need to be aware of the terms of your insurance to ensure that you are covered in the event of an accident. With insurance, you can avoid falling into the trap of poverty and not getting into trouble due to unexpected events or serious illnesses.
7. Investment is an important way to increase the value of assets. Having investment funds set aside shows that you have a vision. You will look for high-quality investment targets, carefully analyze the company's fundamentals and competitive advantages, and not blindly follow the herd or blindly trust others. Even if someone else has a million-dollar portfolio, you shouldn't feel that your investments are insignificant. As long as you invest regularly each month, you will be able to grow your wealth gradually. Keep your own pace, and the compounding effect will speak for itself.
8. The growth of net assets is an important signal. Net assets include assets such as cash, ** real estate, etc. Contrary to what many people think, many people have never experienced an increase in their net worth as debts and expenses cause them to see their net worth decrease or even become negative. Even if your net worth doesn't double every year, as long as it continues to grow, it's a good sign. You can increase your net worth by exchanging for a high-paying job or taking up a side hustle. In addition, it makes more sense to buy a property every few years than to drive a luxury car every day.
9. Having a stable income** is crucial. Income** includes passive income from work, side hustles, rentals, or investments. With a steady income**, you don't have to worry about falling into poverty all of a sudden. However, a single income from work alone is not enough. You may be worried that your business will fail, or that you don't have a mine at home and can't pay your high rent. Therefore, earning dividend income through investments is an effective way to increase a stable income.
Overall, if you have more than one consistent income**, that's great! But if you haven't already, don't worry, it's never too late to start. In closing, I would like to say that while the Internet has brought us convenience, it has also increased anxiety because we are always comparing our own lives to other people's seemingly better lives. But remember, it takes time to accumulate wealth, don't over-compare, learn to appreciate every little achievement you make, and celebrate it. This is the meaning of our struggle. Perhaps, you have outperformed many people in the happiness index. Thank you for your **, that's all for today, I hope you can give me a thumbs up and support!