Financial Freedom is one of those things which all of us pursue either knowingly or unknowingly. To a teenager, financial freedom may refer to settling in his own apartment, being able to afford his lifestyle etc without the fear of going broke. For a small business owner, financial freedom may extend to the ability of spending on personal needs and responsibilities without exhausting savings. Even high income professionals seek financial freedom which is mainly the capability to spend without going into debt. May it be at a small scale or a larger one, financial freedom is something quite challenging to attain. If you seek it, you are likely to confront numerous obstacles along your persuasion which include:
Global Financial Crisis
Each and every economy in this world is suffering from national financial crisis. Even in the USA, 76% of the population is living from one paycheck to the next despite earning good sums on money. The reason is the continuous increase in inflation as a result of which everything, including real estate is getting expensive. This financial crisis is the cause of cultivating the fear of debt in the minds of high income professionals. Not to mention the taxes which are increasing everyday.
Fleeting Perception for money:
Even high income professionals have a perception of money as a fleeting element. Instead of looking money as a way of accessing to facilities and fulfilling needs and wishes, we think of it as something which will never return once it is gone- which is not true.
Another barrier which high income professionals are facing on the way to financial freedom is personal unclarity and insecurities. Any kind of income requires a solid “why” for the sake of spending it. If a person is unclear about what shall be spent and why it shall be spent, he can not truly manage his finances- let alone achieving financial freedom. A strong link between what and why of spending money is important.
Lack of budget and financial planning:
Most of the high income professionals has this attitude of relying on personal instincts instead of going for proper budget planning. No matter the amount of lump sums you manage to earn every month, without proper budgeting, the revenue will soon exhaust to nothing. It is important to keep a close look on what is being spent on what in order to remain sure of your decision regarding finances.
Lack of discipline:
Many individuals lack the discipline which is required for informed investment and gradual increase in cashflow. No one becomes Steve Jobs overnight and no one is heroic enough to rely solely on luck for the sake of attaining his goals. Apart from getting rid of scarcity mindset regarding the not enough availability of money, it is important to cultivate discipline in your investments as well.
There is no doubt in the fact that an abrupt increase in wealth leads to the cultivation of arrogant behaviors in some high income professionals. These people are among those who are just not willing to learn about the new market trends. With new bold advancements taking place in market every week, you can not say no to learning a few things which can ensure financial stability.
The rule of spending income is to “pay yourself first” and rest later. Unfortunately, many of us wrongly focus on spending on others and putting ourselves at last. Always spend your hard earned money on yourself or save it aside for yourself before moving on to spending it on someone else.
High income professionals are exposed to fake friends, backstabbing colleagues and bad company more than anyone else. These people are nothing more than parasites feeding off your golden opportunities to achieve financial freedom. Always try to be extra-careful in your selection of friends and decision of spending on them.
Fear of the unknown, fear of risks, fear of success and fear of debts are just some of the many mental barriers high income professionals have to face on the way of financial freedom. It is important to note that not every fear is true and there is more to living than being afraid of what cannot be controlled.
The crux is that financial freedom is a hard nut to crack but if one is able to deal with the main challenges effectively, he can gradually achieve financial freedom.