Recognize the Barriers to Achieving Financial Freedom

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Financial Freedom is not wishful thinking or dreams in broad daylight. Achieving this takes hard work, consistency, and perseverance. Obstacles will always be along the way and tempt you not to reach them as you see fit.

That is why strong determination will be needed to overcome the obstacles to achieving financial freedom. To be able to achieve this, not only limited to how much money you can invest in each investment basket and record monthly financial cash flow neatly and detailedly but there are habits that must be accustomed to and that must be shunned.

Well, here we will explain the habits that make you will be further away to achieve financial freedom. In a sense, these habits are obstacles for you to achieving your goals. Straight away, here’s the explanation.

Recognize the Barriers to Achieving Financial Freedom

Wrong Understanding

Most people think that one can become rich by obtaining an inheritance or marrying a rich person. But, did you know that the poor or those who are born with mediocre finances or even on the poverty line can be included in the list of the richest people in the world?

Call it Charlie Chaplin or Oprah Winfrey who started their career as someone who was not financially and is now known as a billionaire. Can you name the other names now known as successful and wealthy people not playing but starting their careers from scratch?

To achieve financial freedom, cut the first barriers by changing our mindset of false understanding and start thinking about developing our areas of expertise with the means and opportunities that exist to increase cash flow.

Living from Salary to Salary

Being in a comfort zone sometimes makes a person forget about financial goals that must be achieved immediately. Moreover, if the salary is fulfilled then it can live quietly from salary to the next salary. These circumstances often make you afraid to innovate for fear that the comfort they have is lost.

Though all circumstances may occur at this time if you do not immediately think about how to achieve financial freedom. It’s like you can be easily fired so you immediately lose your salary. If it is like that, just realize that living from paycheck to salary does not provide financial guarantees will be safe in the future. Unless you have a pension, maybe you will be calmer.

But it is necessary to understand that the cost of living is increasing while salary increases sometimes do not fit the needs. This is what makes a person start thinking about financial freedom from now on in order to get their own financial guarantees. Moreover, when the body is no longer able to work, it will be very difficult to earn income as usual. So just imagine if you no longer have what salary can be done.

Lack of Clear Financial Direction and Objectives

Most of us may not yet have a clear financial goal or vision. If illustrated, this state is like someone who is at a train station but doesn’t know where to go. If you don’t know the destination (where you’re going), how do you know which train to board?

So the first thing to do is to make your goals clear and realistic, including setting the time span needed to get to your destination. Thus, you will know which train you will be riding. For example, within the next 2 years, you will have a down payment of Rp100 million for the installment of your new home for Rp500 million.

By writing down your goals with a predetermined time frame, you make a commitment to yourself to achieve that goal. You will be automatically motivated to plan your actions to achieve those goals.

The Urge to Show Off

Have you ever spent money or bought something that wasn’t really necessary and wasn’t even your need just because you wanted to show off something to your friend? Not infrequently party invitations also make someone have to spend deep to buy branded items and various trinkets that are actually not needed just to appear and show off their belongings to others.

If this habit is continuously maintained, then by itself it will “kill” you. You will run out of money in your pocket and even drain money at ATMs and savings. Even not infrequently, this habit will make your finances even minus because you choose to owe in order to obey the desire to show off.

Before buying an item or something, we need to think more deeply whether the item is a necessity that we must buy or just a desire. Try a 10-second challenge before you go to the cashier and pay for the items you’ll take home. For the last 10 seconds, think again about whether the item is really needed or just follow the passions and desires.

This includes strategies to control yourself for things that will prevent you from achieving financial freedom. If you can overcome the challenge, then your savings will be saved and you will get closer to the ladder of success of a financial freedom.

No Reserve Funds

A small part of the monthly income must be saved. This can be useful when some unexpected expenses arise, such as illness or an accident. If nothing happens, it will accumulate in significant amounts that will help you plan for long-term goals such as home, vacation, or higher education.

Like an umbrella that we carry in anticipation of the rain that will come without us being able to predict, so are the difficult times we face. We need funds that are needed that are saved reserve funds for urgent or sudden things and need fresh funds.

If you have one, you can be free of debt and interest rates that will wrap around and strangle you. So, if the funds are not used, in the sense that you do not experience things that require you to spend reserve funds, isn’t that a miracle?

Bad Habits Delay saving

Later, later, and later. That’s usually what happens when we want to delay something. The habit of procrastination is a bad habit that will make you more distant from the state of financial freedom.

What are you waiting for? Waiting to get a salary above Rp10 million? Or wait after the home installment is completed? How much longer? 5 more years or 10 more years? The word “later” seems to be changing to “will never happen”.

So, to become a financial freedom, procrastination is a habit that must be avoided and from now on is very wise advice that can be given. Although the money saved nominally is small, don’t think about it because there is a proverb “little, little, little, over time becomes a hill.”

Habits of Debt

A person will find it difficult to achieve financial freedom if he still has the habit of debt without planning. Having debt is often a consideration because it can support or even worsen your economic situation. Depends on how to manage it.

If the habit of debt to cover other debts is obviously very wrong because it will never be completed. Including debt to meet needs and lifestyle that is not suitable for income. As the proverb says, “Great stakes rather than poles”.

An example of debt that is very easy and simple is to use a credit card to shop. Maybe at the beginning feel only a small nominal then continued until the realization finally unable to escape.

Also, Read Financial Independence:

Not to mention a large amount of debt just imagine how much interest must be paid to the other party. This is the most common financial freedom inhibitory factor and difficult to change. For example, you have a debt of Rp 20 million interest of 1% per month so the interest is Rp 200 rb. If calculated Rp 200,000 x 12 months then it should be yours Rp2.4 million.

Well, that was the description of habits that will prevent you from achieving financial freedom. If you want to achieve financial freedom, stay away from these habits, yes. Good luck!

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