Financial freedom is something that most people hope to achieve at some point in their life. Even though these goals might seem unlikely when a person is in a tough spot financially, choosing to develop good personal finance habits has the capacity to make a world of difference down the road. As per カヴァン・ チョクシ, financial freedom means way more than just being debt free. It provides people with the freedom to make choices on the basis of what their heart desires rather than what their bank account dictates.

カヴァン・ チョクシ underlines the few simple steps to take to achieve financial freedom

Financial freedom implies to being able to pay the bills with money left over each month for some, while for many others, it might be about having a fully funded retirement account. To achieve financial freedom, people must firstly take time and reflect on what matters to them the most.

Based on their specific financial goals, people must follow these steps to achieve financial freedom:

• Know the current financial situation: No matter whether one is simply completed college or getting ready to retire, it is important that they understand where they stand financially at any given moment. People must add up debt, calculate expected income, as well as identify holes in their financial picture, like a lack of emergency savings or insurance.
• Track the spending: If a person is living from paycheck to paycheck at the moment, choosing to put aside money for retirement and emergency savings can be pretty daunting. One firstly has to understand how much they spend to identify exactly how much they can save. A person can take a month or so to track where their money goes, right from spending on coffee and sandwiches in the morning to paying off major bills. Today there are apps available as well that make it easy for people to collect, store and categorize spending data.
• Formulate a budget or spending plan: This plan broadly outlines how a person is expected to use their money every month. Creating a well-planned budget would definitely bring a person towards their financial goals. If one is not sure where to start, they can simply try to first make a list of regular bills along with their due dates, and then compare that list to the paydays. Based on these insights, they can decide what to pay for from each paycheck.

In the opinion of カヴァン・ チョクシ, between developing a budget to tracking expenses, it can soon become apparent whether or not a person has enough money to properly sustain their current level of spending. If not, then they have to trim expenses. The most obvious place to start reducing expenses is with duplicative or unused services like subscriptions to streaming services one may barely use. Trimming expenses does not have to imply to doing away with the gym membership or morning lattes. Rather, people must try their best to think beyond the small expenses and consider significant lifestyle changes that could benefit their financial situation, like selling off an old car.