Home Money

Financial Freedom: Lessons from Successful Entrepreneurs

You don’t have to be born with a silver spoon in your mouth to have financial success. In fact, some of the most impactful, well-known entrepreneurs, like Walt Disney, Oprah Winfrey, and Steve Jobs started from humble beginnings and built their way into wealth.

Unlike centuries of self-made individuals, today’s society has access to the knowledge of countless entrepreneurs-made-wealthy. With their proven lessons, you don’t have to reinvent the wheel as you learn and earn your way to financial freedom. Just follow these tips!

1. Know Your Goals

No one accidentally falls into financial success. To achieve the freedom of economic stability, you must know what it looks like and how you’re going to get there. This is achieved through strategic analysis of what you want your retirement years and estate to include and a detailed plan to make it happen.

This step is crucial. The more thorough you are, the more likely you’ll reach your goals without major roadblocks. Working with a financial advisor can help you set goals and determine the avenues that work for your unique situation. As a beginner, this article by OJM Group, geared toward investing physicians but appropriate for anyone on the path to financial freedom, is an informational place to start.

2. Get Comfortable With Budgeting

Spending less than you make might sound like common sense, but with a $16.9 trillion debt load in America, we aren’t all doing this vital part of financial freedom. Instead, many families turn to credit cards and consumer financing. For some households, this is necessary as they navigate the significant economic changes over the past few years. For others, it’s an easy way to buy the latest products and services that pique their interest.

Whatever the reason, spending less than you make needs to become a regular part of your financial plan if you want to achieve freedom. This goal starts with creating and sticking to a budget. Budgeting doesn’t restrict your spending; it teaches you where your money is going and helps you decide which expenses are worth the cost and which should be eliminated to help you get on the solid path to economic stability.

As you set your budget, look for expenses you can cut or places you might find better deals, like insurance or phone plans, streaming services, and recurring subscriptions. When you save a few dollars, invest that money into paying off debt or adding it to your savings account.

Budgeting also comes in handy when buying a new car or home. When you know your income and expenses, you can say “no for now” to fancier vehicles and houses outside your financial comfort zone and say yes later when you have less debt and more economic freedom.

3. Increase Your Income

If you’re struggling to spend less than you earn, you may need to make more money. Understandably, this step isn’t always as easy as it sounds. However, if you’re determined to increase your income, many side hustles are available. You can also start by selling unused items in your home on various apps and websites, or look for a part-time job that works around your full-time schedule.

Remember that although this step can be tiring, it doesn’t have to be forever. Once your debt load is manageable, you can return to your regular work and adjust your financial plans accordingly.

4. Maximize Employer Matches

Does your employer offer matching contributions to your 401(k) and other benefits? If so, this is “free money,” and if you contribute to the match limit, you could receive thousands of dollars in extra retirement income. For example, if your contribution is $2,000 per year, and your employer matches it, over the course of ten years at your job, you’ll have invested $20,000 of your salary into a growing retirement fund, and your employer will have done the same. Your investment of $2,000 is less than $200 per month, which can be budgeted around. However, a $40,000 401(k), accrued over ten years, will significantly help as you work toward your retirement goals.

Conclusion

We all want to achieve financial freedom, but not everyone will work to achieve it. Successful entrepreneurs who have begun at the bottom and made it to the top share these common lessons with the world: create goals, budget, make more money, and take advantage of free money. Follow their suggestions, and you, too, will be on the path to financial freedom!