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Beginner’s Guide to Financial Freedom


I hope this piece appeals to you.

To begin with, it is essential to note that age doesn’t determine financial freedom. Income and savings do! No matter your age and where you are in your journey to being financially freed, I am excited to share some tips that should guide you on your journey to achieving true independence. 

Here Below.

Build Your Income

You need a source or sources of income to increase your savings. It can be from paychecks and side gigs. The goal here is to earn enough to get into the habit of saving.

Get Out of Debt by Avoiding More Debts

If you don’t have any debts, try and keep it that way. Debt is justified when the resources are invested in a viable idea that has the potential to yield returns that surpasses the invested amount as debt from banks and loan companies can accumulate interest making it a huge liability. If in debt, try to pay off your debt as soon as you can and avoid getting into more unnecessary debt. Effective ways to do this include:

  • Developing a structure that will direct the repayment of all debt balances and allow you to channel some funds into productive streams without solely focusing on debt servicing. 
  • Live within your means by prioritizing your needs above your wants. If you have a pay raise at work or a business deal, don’t use it as an excuse to increase your discretionary spending.
  • Keeping a strict budget. It’s okay to sometimes spend on non-essentials but limiting the amount you spend allows you to set aside more money for emergencies. Life is filled with unexpected events like assets maintenance, medical expenses and others. You want to be financially prepared when these happen instead of going into debt because you don’t have emergency funds. 

Build Your Savings and Emergency Fund

Before you start investing, it is recommended that you build an emergency fund.  An emergency fund is crucial in the event you become unemployed and helpful in a case where one of your sources of income falls through. It’s recommended to have 3 to 6 months’ worth of your monthly expenses. What you are doing is investing in your peace of mind. Put this money in a savings account to keep you and your family afloat.

Begin to Invest

Once you have secured an emergency fund and built enough capital. You can look at all possible investment options based on your capital, risk tolerance and preferred investment term. Eventually, you should also consider diversifying your investment portfolio to moderate risk.

Grow your investment past your income

Once you have delved into various investments, you will want to keep growing your portfolio until you get to a point where your investments generate more income than your actual salary. This could take years especially if you have opted for a low-risk, low-reward investment. Once you’ve reached the point where your investments drive more income than your job and you’ve set aside a significant amount in savings, you can finally retire and spend your days doing what you love.  The passive income you receive from your investments should be more than enough to keep you and your family financially secure if well-managed.

Thank you for reading.



One thought on “Beginner’s Guide to Financial Freedom

  • Kwasi Ofei Ackonor
    on 7 August 2023

    Very educative and easy to comprehend

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