These five steps will help you achieve financial freedom a little faster. Don’t worry; it’s not necessary that you carry out all five steps—but it’s better if you do!
Save more and invest the difference.
Here’s a tip on how to save more on your mortgage: The next time you write your monthly mortgage check, write a second check for the principal—only a portion of next month’s payment. This will cut your mortgage in half!
Apart from saving on your mortgage, cut down on impulse buys and look for good sales on items you need/want. Think about how much joy you get from spending money on these things, and think about whether you would be more happy with financial freedom.
Write down at least three expenditures you will eliminate, and calculate how much money this will save you over the course of one year.
Earn more and invest the difference.
The best way to earn more money is to make yourself more valuable. One way you can do this is by learning a trade skill, as trade skills are very much in demand in the job market.
Reduce fees and taxes and invest the difference.
Sit down with your fiduciary or a tax expert and learn how to be most tax efficient with your investments.
Get better returns and speed your way to victory.
Use asymmetric risk/reward to guide your investment decisions. This is when you only invest when the ratio of your returns to the amount you invest is asymmetrically high. For example, risk $1 when you believe that you can win $5.
Change your life and lifestyle for the better.
If it is possible, move to a more tax-friendly state that also has cheaper living costs.