Practical Habits To Prepare For Financial Freedom
Updated: Jul 20
Financial freedom does not just happen by chance; it takes more effort, preparation, and mindset shift to achieve it. Financially free people can do whatever makes them happy because they can generate passive income to cover their reasonable expenses. For ordinary people, it is not easy to achieve financial freedom before you are 30 years old. Most people in America never achieve true financial freedom because they spend more than they make in their lives. I hope this blog will inspire some readers to get on the right path to financial independence before they are 50 years old. The first step to financial freedom, especially for young generations, is to establish excellent life habits.
I am not a financial expert or investment specialist; I will not give you bits of advice on how to invest or what to invest in. You need to consult with an investment professional related to stocks, funds, bonds, real estate purchase, property rental, flipping homes, investment in real estate crowdfunding, or other financial products. Upon the requests from my blog readers, I will share with you some practical and critical habits that prepare you mentally and tactically to achieve financial freedom based on the experiences or success stories from financially free people.
1. Be grateful to your parents whenever you receive money or financial support from the moment you could remember. It is impossible to achieve financial freedom on your own if you do not cherish every penny you receive from others, including from your parents. Never take your loved ones' money for granted.
2. Trust yourself to reach financial freedom on your own without depending on your parents or other resources.
3. Do not follow the latest fashion by forming your unique style at a reasonable cost. Buying the most expensive clothes, shoes, and other luxury goods will push you away from financial freedom.
4. Develop a saving habit, even just one dollar a day. A wealthy lady in her 80s now invested $15,000 of her savings in a startup company when she was 18; now, her assets are worth over 5 billion dollars.
5. Do not compare yourself with others, especially to your classmates, buddies, neighbors, or celebrities and stars.
6. Be realistic with yourself and prepare to make necessary changes to reach your potential.
7. Let go of saving face because many people buy expensive things over their budget limit to impress others.
8. Buy what you can afford and what you need without impulsive shopping.
9. Set a long-term financial freedom goal immediately after reaching the age of 18 years old.
10. Be willing to work and do the best you can after graduation from college.
11. Think of your life purpose and explore the unknown on your own terms.
12. Stay physically fit all the time by exercising at least one hour every day. Good health is the foundation of financial freedom.
13. Delay non-compulsory expenses until it becomes an urgent matter.
14. Create an emergency fund for yourself and your loved ones by depositing a certain amount of money automatically into it every month to ensure you have peace of mind all the time.
15. Teach your children to manage their expenses from limited funds every month from a young age.
16. Learn to form a spending sequence: invest, save and spend; always think of investing and saving first before spending.
17. Do not put your children into an elite school; a good school with a safe environment is good enough. Kids attending the best school like to compare and envy other wealthier schoolmates and pressure their parents into donating more money to the school or to buy more unnecessary materials.
18. Plan your entertainment activities, holiday parties, or other leisure events to economically balance the costs and budget.
19. Control your unnecessary desire and stop following famous brands, visiting malls, and buying luxury goods.
20. Focus your own life without comparing it with others or envying their possessions.
21. Keep your expenses as low as possible by listing all your costs and potential income as your spending guidance.
22. Quit all bad habits to stay focused and positive to manage your life mindfully and wisely.
23. Manifest your future financial freedom at least once a week to connect with the universal energy and frequency.
24. Start your daily 20 to 30 minute meditation for financial freedom and abundance by visualizing your future financially free life.
25. Read at least one book and two articles about financial freedom every week.
26. Chat with people you know with financial freedom for suggestions and ideas.
27. Be frugal in your spending without pretending, showing off, and copying others.
28. Learn new skills to establish side business with passive income without quitting your pay job until you feel comfortable and financially free.
29. Do not carry debts if possible or manage your debts diligently without affecting your credit score or paying additional interest to financial institutions. Pay your debts as soon you can to ensure your debts do not get out of control. Debt-free is the ideal state of life.
30. Start to invest as early as possible to make use of the power of compounding.
31. Be insured for your health, life, or assets to protect you and your family against potential risks, financially and physically.
32. Invest with a goal and patience to let your wealth grow gradually.
33. Stop being too greedy with high-risk investments.
34. Keep learning about investment, retirement, wellness, mental health, and other mindful subjects in your spare time.
35. Balance your investment options without putting everything into one basket.
36. Stay positive and happy with just enough money for the rest of your life.
37. Contribute a portion of your wealth to charity after reaching financial freedom.
38. Honor and respect everyone in your life regardless of their race, color, nationality, financial situation, and social status.
39. Donate goods you do not need anymore to those in need.
40. Be open-minded without judgment to news, opinions, suggestions, and pieces of advice.
41. Be creative for new ideas, opportunities, potentials and possibilities.
42. Believe in the power of thought and mindfulness with focus on the present, not the past.
43. Have hope for your future with financial freedom and spiritual enlightenment.