5 Actionable Steps to Pave Your Way To Financial Freedom

Discover five ways to free your finances. It's time to create your financial blueprint, and start taking steps today to achieve it

Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

According to Debt.org, each American household with a credit card holds approximately $8,398 in debt. Statistics like these are encouraging people to strive for financial freedom. Imagine never having to hand your money over to a financial institution as interest. Jake Tayler Jacobs, the founder of the business consultancy firm The ABS FIRM, believes that it takes prudent financial planning to recover from debt, generate more income streams, and be financially free. Jacobs has authored several books that aim to help people understand their economic potential and reach financial freedom.

Entrepreneur India

Know where your money is going

The first actionable step you can take to free your finances is to examine precisely where your money is going. Discover what your expenditures are and whether they are a necessity. Jacobs says, “In this modern age of subscription services, we’re not able to stay afloat because the boat that is our income has sprung a leak, we are letting our money trickle away in the form of T.V subscriptions and unused gym memberships.”

Think like a banker

The bank has a purpose, and it sticks to it. To truly enjoy your finances, you need to see them objectively. Think like a banker and always have capital that you can create more capital from. Jacobs advises, “The greatest thing that you can do for your finances is to end your dependency on banks. Stop borrowing and start accumulating.”

Understand your financial legacy

 Every decision you make about your money today will affect your financial future. Spending beyond your means will leave you bereft in the future and make expansion and financial freedom impossible. “When you act in the present, always think of the future, make sure that you are paving your way to a profitable future rather than creating a dead-end of debt,” explains Jacobs.

Learn from your money mistakes

Use your past failures as navigational tools; let them guide you into a more profitable future. Learning from mistakes we have made with our money in the past can help avoid future financial pitfalls. Jacobs states that “There is no shame in financial failure; failing at something shows that you at least tried. No failure will ever leave you empty-handed; you will always be wiser for it.”

Turn your purpose into profit

Everyone has the ability to create money and become financially secure. It all starts with having a purpose. Once you define how you will make money and keep it, it becomes easier to adhere to. Jacobs explains, “With a great idea and a good formula, you will reach your monthly revenue goal. Know your purpose, and the profits will come to you.”

Shivang Saxena

Written By

Entrepreneur Leadership Network Writer

Shivang Saxena is a New Delhi-based writer-entrepreneur. Reading, writing & entrepreneur-ing always. He's the founder of The Words Vibe. A platform for newbie writers to hone their skills. He's also working with his first book called, "Too Many Thoughts, Too Many People" which is due to get published by end of 2021.