Introduction – Type and definition
Human life needs multiple things to survive and grow such as food, clothing, shelter, vehicles, knowledge, and skills. Necessary items are usually acquired by spending a few units of money on them. Apparently, the abundant availability of units of money to buy required things gives financial freedom to an individual; 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 a livelihood 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 ensure the necessities of life.” In addition, 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 disruptions) and improve their well-being and that of future generations. without undermining the natural environment or resource base. Simply put, for the financially independent, livelihood or income from assets, work or business is greater than expenses and the income stream is stable.
The absence of livelihood means financial dependence. It happens for two reasons: personal and interactive. On a personal level, the very denial of a pattern of independent living is the cause of a meager livelihood. At the interactive level, the total denial of the interdependent life pattern is the reason behind insufficient livelihood. Financial freedom is the state of having enough personal wealth/income to purchase independently needed 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 (Sspecific, SUBWAYeasy, HASreadable, R.realistic and youbound) 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 child/old-age savings or income-generating assets. The optimistic outlook on life is vital to the effective specification of financial goals. (Specific mentality towards the paraphernalia of life)
2. Seek only measurable financial goals, for example, it is wrong to pursue wealth without an exact specification of the stream of income. Write down the necessary actions or work plan to achieve the measurable objectives. Prepare the work plan/action plan clearly, meticulously and concisely. (Measuring mindset towards 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 critically important. (Achievement is the result of proactive behavior)
4. Do something every day that moves you toward achieving your goals. You may encounter obstacles, detractors, and limitations. Handle them wisely and keep your momentum and morale going through the 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-timelines and arrange the items in the proper sequence and priority. It is of utmost importance to follow the maxim, put first things first. A goal may be unachievable due to some reasons, please review the goals to avoid wasted efforts. Quitting is sometime the best strategy towards various surreal goals. The correct abandonment saves money, effort and time for some achievable goals. (Time efficient behavior)
Absolute Foundations 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 adopt three ways through proper nutrition, that is, entrepreneurship, consulting and labor. Labor is the ability of an individual to perform work economically, efficiently. Consulting is the ability to give professional advice/feasible idea to someone on a cheap job, honestly. Entrepreneurship is the ability of an individual to innovate/realize a business idea effectively. Innate productive capacity is wasted or damaged due to erroneous beliefs or heinous crimes, whatever the reason, conceptual or practical, idle or depleted productive capacity can be recovered or replenished through concerted economic efforts and money-making skills. Featured replacement tools are learning new income techniques, applying acquired skills to earn income, and networking with relevant individuals or institutions. Simply put, it’s learning, earning, 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 ability, but is based on earned capital and derivation from natural productive capabilities, that is, entrepreneurship, consulting, and manpower. An effective investor is supportive during multiple financial crises, pragmatic toward business opportunities, and accurate toward a company’s accounting jobs.
Main obstacles in the way during the financial struggle
A job for monetary benefits is called economic work; It 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 stipulated units of money for personal use. 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.
concluding 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 outcome of the fight does not appear.
