Everybody wanted to acquire financial freedom but less percentage acquire it. But truth is every body can achieve that position by changing behavioral attitude.
Here are 12 signs that tells you you’re already achieved financial freedom!
1. You are not losing sleep over your money problem
When you go to sleep at night, you will sleep deeply and peacefully. And if anything does keep you awake, it is not related with your money problem.This is a non-financial benefit that people who are financial independent have as a result of their strong financial position. This isn’t to say that you don’t have any money problems at all, but rather that they are not important, and you have reasonable solution to solve that money problem.
2. You Use Credit Cards for Rewards and Points – But Never Out of Necessity
You have not any staying debt in your Credit card and you use the credit card strictly be for getting rewards and Points .Also you are paying your credit card debt every month.You don’t have an addiction to an unsupportable lifestyle and self image that results in overspending.
3. You are not Worrying About Losing Your Job
This is one of the very best indicators that you are acquired Financial Freedom. It’s a sad condition that the vast majority of people live from salary to salary. They think if they lose their job, even for a month or two, would be a financial disaster.Since your financial position in balance, losing your job isn’t something that you worry about, and you have three to six months of expenses as Emergency Fund.
4. You’re Not Late With Payments
This is because you always have sufficient money to pay your bills, you follow the “pay yourself first” strategy and there is not any situation to stay the bills due .
5. People Ask Your Opinion About Investment and Financial matters
One of the biggest outward signs that you are financially independent is when people ask your opinion about financial freedom. They believe in your capability and your financial advise.When this happens, take it as a supreme compliment. It means that your financial independence is so obvious that others can see it, and will ask your opinion as to how to achieve it.
6. You Contribute atleast Fifteen Percentage of Your income To Retirement
Many, many people contribute not more than the minimum percentage that they required in order to get the maximum employer match on their retirement contributions.
But that’s not a right.
You recognize the importance of retirement investing as a critical part of achieving financial freedom. You have two option in retirement investment, either make the maximum retirement contribution that you can, or your contribution is well into fifteen percentages.If your mind stick with financial independence you can definitely retire before the normal retirement age.
7. You Can Afford to purchase the Things You Really Want
You can afford to purchase any thing you really want, prior to that you will valuate the necessity of that things in your life.You don’t want to go for debt to buy it, you have enough fund to purchase.
8. You have well prepared monthly budget and you stick to that budget
You have well prepared monthly budget and you stick to that budget. You are categorized all your expenses and there is hardly find the unwanted expenses. You are well control of your money and you tell the money where to go.
9. You’re Confident About Your Future
This is one of the best evidence that you are financially independent. Your finances are definitely under control, that you are confident about your future. This is because your income and expenses are well defined and your wealth has been increasing substantially over the years, and you carry little, if any, non-housing debt.
10. Your Net Worth increasing Significantly From Year to Year
Your net worth has been growing each year, and it snowballed to larger amount. It is not talking about doubling your money each year, but rather about continuously increases in your net worth. Those wealth appreciation coming from combination of adding regular investment and returns from already made investment.
11. Live below their means
You are well arranged your personal finance , reducing unwanted expenses and definitely making space to achieve financial goals. You live on less than you make and aware of the difference between what you need and what you want ,accordingly you are taking purchasing decision.You believe financial freedom is more important than displaying high social status.
12. You have Emergency fund when a sudden expense pops up
You have sufficient fund as Emergency Fund that will enable for three to six months of all your expenses. An emergency fund is designed to cover a financial burden when an unexpected expense pops up.
“Money magazine states that 78% of us will have a major negative financial event in any given 10-year period.”
You are well aware of that expenses and that fund kept in liquid ,can get it easily and quickly.