3 Steps for Millennials to Achieve Financial Freedom (2024)

Hello readers! Today we welcome a guest post from Chris at LifeUpswing discussing one of our most favorite topics – Financial Freedom! Enjoy.

Financial freedom looks different to everyone. Maybe you want to be debt-free, own a home, or have substantial savings. Perhaps you want all that and more!

Whatever your goals are in life, you must have a plan to get there. These 3 simple steps will help you achieve financial freedom.

The steps to financial freedom in this guide are suitable for anyone to follow. Provided you can make a realistic plan that you can stick to, then you can do it. Start your journey to financial freedom now!

Is It Easy To Become Financially Free?

Some people will find it easier than others to achieve financial freedom. A lot depends on your personal circ*mstances such as the cost of living in your area and your career. Recent financial statistics show that many Americans are not prepared for emergencies.

For example, only 56% percent of Americans have an emergency fund. In the event of an emergency, 59% of Americans have less than $1000 saved to cover it.

Where do you sit in those statistics? Could you cover an emergency bill, or would you struggle?

Taking the right steps now towards financial freedom can be crucial for having the future that you want.

3 Steps For Millenials To Achieve Financial Freedom

OK, now it’s time to learn the 3 simple steps towards achieving financial freedom. There is nothing complicated in this advice. Everyone reading this can implement these changes in your life towards becoming financially free!

Budget

Budgeting is a vital first step towards financial freedom. 74% of Americans have a budget and 85% actively try to reduce their expenses. To start with you need to make a list of every expense down to the exact cent.

Once you know exactly what money you have coming in and going out you can build a plan.

First, the outgoings. Look through every bill and try to find ways to reduce them. Many bills such as insurance and cable can be negotiated for cheaper rates. Don’t forget when they are due for renewal to check if they can be lowered or if there are cheaper alternatives.

Go through every subscription you pay and cancel any you no longer use. Music, TV, and gym subscriptions tend to automatically renew every month. Cut out as many as you can to save money.

Housing, food, and transport are the 3 main costs we all have every month. To save money on housing think about renting a room out either permanently or using sites like Airbnb. You could also try refinancing your mortgage if a cheaper rate is available.

The cost of transport can be expensive. Car maintenance, insurance, gas, and other costs soon add up! To save money see if you can carpool with work colleagues. Alternatively, check public transport in your area to see if that’s cheaper and more reliable.

Finally, there are lots of ways to reduce the amount you spend on food every month. Cut down on how much you eat out and make sure to make your own lunch every day. Grabbing food on the go can get expensive! When grocery shopping try switching to cheaper brands. They are often just as tasty!

Now that you’ve created a realistic budget and saved as much as you can, you’ve taken the first important step to financial freedom. Use the extra money created by the budget to pay off debts, save, or invest.

Remember, check your budget regularly (every week if you can) to keep it up to date.

Invest

The next step to becoming financially free is to start investing. Many people leave their money sitting in a bank account or at home in a drawer. Don’t do this as it means, in the long run, your money is worth less than today. How so?

Simply put $1000 today won’t buy as much as $1000 in 5 years’ time. You might still have $1000 but because of inflation, it can’t purchase as much as it could right now.

This is why investing is such an important strategy towards attaining financial freedom. It means your money is growing and you will become wealthier.

These days the internet makes it easy to invest. You can invest in traditional stocks and shares using a variety of websites or apps. There are many other fantastic ways of investing that are not as traditional. Check out investing in cryptocurrency, real estate, peer-to-peer lending, and even wine!

All these methods are legitimate ways of investing. What many do is start small and spread their investment risk over several strategies. Having a diverse portfolio is a great way of protecting yourself should one investment struggle.

Remember, all investments carry a level of risk. Don’t invest more than you are prepared to lose and seek professional advice if you are unsure about any investment.

Earn

The final step to becoming financially free is to earn more! If you are currently employed, you could ask for a raise or apply for a promotion to a higher paid role.

Another way to earn money is by starting a side hustle. Currently, 65% of Americans make money from a side hustle. Side hustle ideas include blogging, freelancing, driving for Uber, and many more.

Think about your skills and the time you have available. Search online for side hustle ideas relating to your areas of expertise.

Another great way to earn some extra money is to use various reward sites and apps. Sites like Swagbucks and Ibotta offer great cashback schemes and discounts for shopping. You can also complete additional online tasks to earn more. Tasks include completing surveys, watching videos, and even playing games!

Doing all this can help you make money every month on top of your normal earnings. This extra money could be used to pay off debts faster, build savings, or invest.

Next Steps

Now that you know the 3 steps to achieve financial freedom what should you do next?

The answer is simple – start putting it into practice. Decide what your goals are in life and build a budget that works towards achieving them. Remember to get there quicker by investing and increasing your income.

In no time at all, you will start hitting your goals. Buying a home, a dream holiday, or just being debt-free are all easily achievable!

Author Bio

Hey, I’m Chris. I have a degree in Business Economics from the University of Liverpool, own a small fast food business and run LifeUpswing.com. I will help you to make money, save money, and think about money in a way that will give you back your freedom.