Finances are one of the key indicators to measure your success in professional life. It doesn’t mean that you start earning from any sort. Your earning should be in the ethical and legal way. At the same time, you also need to understand that only hard work and honesty will not help you to earn money and make profits.
To achieve financial growth and freedom you need to follow basic steps as below:
1. Setup financial goal
The first step to achieve financial growth and freedom is to set your income targets. You should clearly define how much you want to earn in a year, in a month and in a day. This will help you to get clarity to define plan how you will achieve it.2. Overachieve and increase
Once you have setup your financial goals, try to achieve more then you decided as for when you were setting the goals most of the time it happens that we set financial goals based on our needs which may be less to give you complete financial freedom. At the same time, each month or year try to show an increase in revenues which will show your growth. If you are decreasing it then its opposite and you are not successful.3. Reduce the expenditure
This is one of the key factors. Once you are increasing your income, it’s also equivalently important that you reduce your expenditures. This is not like you become a miser, but if in past you were spending 60% of your earn amount and 40% was saving now as your earning is increase you should spend 50% and rest 50% in saving. If you are doing the reversal of this than it will be the disaster for you. To understand it practically just see below example:Financial freedom:
- You had earned INR 50,00,000 in the year 2016 and your spending (expenditure was 60% of your income) this means :
- Expenditure: INR 30,00,000
- Savings: INR 20,00,000
- You had earned INR 70,00,000 in the year 2017 and your spending (expenditure was 50% of your income) this means :
- Expenditure: INR 35,00,000 (More comfortable lifestyle)
- Savings: INR 35,00,000 (More saving)
Financial Disaster:
- You had earned INR 50,00,000 in the year 2016 and your spending (expenditure was 60% of your income) this means :
- Expenditure: INR 30,00,000
- Savings: INR 20,00,000
- You had earned INR 70,00,000 in the year 2017 and your spending (expenditure was 70% of your income) this means :
- Expenditure: INR 49,00,000 (Luxurious life Style)
- Savings: INR 21,00,000 (Less saving)
Source: http://www.yatharthmarketing.com/blog/simple-steps-to-get-financial-freedom.html
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