Financial freedom: what it is and how to achieve that dream!

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Financial freedom: what it is and how to achieve that dream!

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Conquer the financial freedom it may seem like a dream, but it is actually a possible goal for everyone, including you. So if today you have debts that seem endless, don't be discouraged. There is always a way to resolve pending issues, get out of debt and start from scratch.

In this article, you will understand better what is financial freedom o everything it takes to achieve that desire. Interested? Stay with us!

What is financial freedom?

Financial freedom is being able to choose what you are going to do with the money without worrying about not compromising the basic expenses.

Whoever reaches this stage assumes total control of their own resources, starting to use them for their own well-being and to build wealth.

If you don't have to worry about how will you get money for rent and you can give away the shoes of your dreams without getting into debt, congratulations: you've already achieved financial freedom.

That was just one example, of course, but this is the idea: being in control of finances enough to:

  • refuse a job offer you don't like,
  • travel a lot,
  • buy something you've always wanted.

All this without thinking too much about the monthly bills, as they are probably already paid.

>> Want to learn how to organize yourself financially? Check out this other blog post: Personal financial planning: what it is and how to implement it <

What is the difference between financial freedom and financial independence?

Although independence and financial freedom are widely discussed concepts, many people still think that they are the same thing, which is not true.

Unlike freedom, financial independence it is only achieved when a person has enough wealth to maintain himself only with him, without depending on a salary.

In this case, the amount invested alone generates monthly income enough for the staff to cover all their expenses.

Financial freedom, in spite of enabling a more peaceful life, still requires that the person has one or more sources of fixed income to support himself.

Next, we separate a video on financial independence. Continue reading this article to learn more about achieving financial freedom.

The amount of equity required to achieve financial independence varies widely, as expenses vary from case to case.

If for some a monthly income of R $ 5,000 is sufficient, for others it may not be.

Factors such as family size and standard of living are crucial to this definition.

Finally, it can be said that financial independence is the next step in financial freedom. First, you take control of your money and then live solely and exclusively on the income generated by it.

However, this does not mean that you should stop working. Theoretically, this is possible, of course, but as the saying goes: money does not bring happiness.

Being an active person is absolutely necessary to obtain personal satisfaction and feeling complete. Examples of this are personalities like Elon Musk, for example, who continues to work even though he has not needed it for a long time.

In fact, financial independence is a great opportunity for you to dedicate to a new business or the career of your dreams without the pressure of getting a very high salary to pay.

How to have financial freedom?

Are you excited to seek your financial freedom and what to know where to start? We have listed some tips that can help:

Below, you will learn more about each of these steps. Check out!

1. Think of money positively

To achieve financial freedom, you need to think of money as a solution, not a problem.

The first step is to look at yourself and understand how your relationship with him is going.

What are your financial habits?

What are your difficulties?

If you spend more than you earn, what is the reason for that?

Whoever wants to be financially free cannot be afraid or run away from these reflections. Many people want to have money, but find it difficult or a burden to take care of it.

Do not fall into this financial trap. This kind of mindset will only make you self-sabotage in your quest.

2. Understand your current situation

Any big goal requires people to start with the basics, without taking a step bigger than the leg.

When we talk about financial freedom, it means facing it head on:

  • your debts,
  • the size of your reservation,
  • how much money you need to get out of the red.

Write everything down on a notepad and do the math. Assimilating the result can be a shock, but it is essential to move forward.

3. Build a budget spreadsheet

A family or personal budget spreadsheet is the most practical and quick way to understand how your spending is doing and what can be cut.

The first step is to create spending categories, such as:

  • home,
  • food,
  • transport,
  • welfare,
  • debts,
  • investments.

Then, separate the amount required for each section and record the expenses throughout the month, including fixed expenses and debit and credit payments.

When you see how much you still have available in each category, you will think twice before making an impulse purchase or one that is not needed.

In addition, viewing spending this way is a great way to get a detailed picture of your finances and make any adjustments you need.

At HR Consultant UK we created a complete and free financial control spreadsheet template. Download your Personal Expenditure Control Worksheet and start filling it out.

4. Settle your debts

Debts are enemies of financial freedom, as they put an end to your peace of mind and prevent you from saving or investing. Therefore, whoever pursues this objective needs to focus on paying them off as soon as possible.

No matter the size of your debt, interest and the number of installments: they all have a solution.

It is possible to renegotiate and make agreements with creditors to be able to pay without compromising the budget, even if it is gradually.

When eliminating the debts of your day to day, the idea is that you stop paying interest and manage to save. After resolving your situation, be very careful not to get into debt again. To do this, create habits like:

  • avoid overdraft;
  • do not split the credit card bill;
  • prefer cash purchases;
  • monitor your budget daily;
  • never spend more than you earn.

To deepen your knowledge in this area, we recommend that you access, “Have financial discipline with our guide to get out of debt”.

5. Create an emergency reserve

Did you eliminate the debts in your life? The next step towards financial freedom is to create an emergency reserve.

Knowing that you will be covered in case of unforeseen events is essential to have the necessary peace of mind to use your money without worry.

So, before you start investing with a focus on income, it is worth dedicating yourself to this financial mattress.

Ideally, it should be sufficient for you to keep for six months without a source of income in case you lose yours.

6. Set financial goals

Having goals is an essential part of the quest for financial freedom. Think about why you need money.

To get out of debt?


Buying a property?

This is important because the financial behavior changes when there are clear goals.

That way, you think twice before spending on something that will not help your achievements, and you have greater control over your money.

Also remember that every goal must have a well-defined value and deadline. Otherwise, they become just desires that are unlikely to be put into practice.

When listing your goals, instead of “I want to save money to travel”, write “I need R $ 12,000 to spend 15 days at Disney in two years”.

This makes it easier to have the focus and discipline necessary to put your ideas into practice.

7. Start investing

Once you understand what financial freedom means, pay off your debts, build an emergency reserve and set your goals, it's time to start investing.

This is the final step towards financial freedom. After all, having money earning will ensure that you can make decisions related to finances with much more peace of mind.

For this, once again, you need to create habits that help you think and act like a good investor. Meet some of them.

1. Study the market

Research a lot about the applications of fixed and variable income in the market, learn how they yield and in what situations they more or less compensate.

You don't need to become an expert, but knowing at least the basics of the financial market is step number one to be successful in investments.

Know the main types of investment to understand which is the best for you.

2. Understand your financial profile

There are three investor profiles:

  • conservative,
  • bold,
  • moderate.

To find out which one is yours, you can take an investor profile test. In addition, you need to understand how you deal with risk when it comes to finance:

  • conservative: more cautious investor, who prioritizes not taking risks, even if it means lower returns;
  • bold: prioritizes high gains, even if you risk losing money.
  • moderate: accepts to take risks, but not too high. It obtains higher yields than the conservative ones, but lower than the bold ones.

3. Pay yourself first

This is the golden tip for investing looking for financial freedom. When receiving your salary, already separate the part you want to invest and make your applications.

Do not expect money left over at the end of the month for this, as most of the time there is nothing left.

Now that you know how to achieve financial freedom, it's time to put what you've learned into practice.

It all comes down to seeing money in a positive way and creating habits that help you have a healthier financial life.

With that, you will be able to use your earnings for your well-being with much more peace of mind!

The role of companies in the financial health of employees

When we talk about financial organization and financial management, we are not only talking about investments and financial freedom, but also mental health and productivity.

For some time, companies ignored the financial problems of their employees, today, however, this reality has been changing. The stress generated by debts and other problems can directly impact the result of this professional, within the business.

In this scenario, more and more companies are offering as a corporate benefit the on-demand salary.

HR Consultant UKy is a application that allows employees to anticipate part of their salaries whenever they want in a simple and instantaneous way.

Believe me, the benefits for the company are also many such as:

  • decrease in turnover;
  • productivity increase;
  • attracting and retaining talent.

Read more at: Stop ignoring your employees' financial well-being!

Did you like it? Then visit our website and indicate the company you work for to be part of this new payment on demand model.

Still in doubt? In the video below we explain how it all works. Check out!

Did you like the article? Tell us in the comments about your search for financial freedom. We are available to answer any questions you may have on the subject.



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