The Ultimate Guide to Financial Freedom - First Edition - Fly Above the Clouds: Education, #1

By MEKDAD

Ultimate financial freedom is having complete control over your money and time. It means your assets generate enough passive income to fully cover your living expenses without having to work. This frees up your time to pursue whatever brings you fulfillment, rather than being dependent on a job just to make ends meet.

• Language: English
• Publisher: MEKDAD
• Release date: Jan 9, 2024
• ISBN: 9798224860739

MEKDAD

Hassan MEKDAD is a specialist in the financial sector working with the consultancy of UNITED NATIONS agencies

Book preview

WELCOME TO THE WORLD OF FINANCIALFREEDOM! WE ARE EXCITED TO PRESENT TOYOU OUR LATEST EBOOK ON BUDGETINGAND PERSONAL FINANCE. THIS BOOK ISDESIGNED TO HELP YOU TAKE CONTROL OFYOUR FINANCES AND ACHIEVE YOURFINANCIAL GOALS. WHETHER YOU’RELOOKING TO SAVE FOR A RAINY DAY, PAYOFF DEBT, OR INVEST IN YOUR FUTURE, THISBOOK HAS GOT YOU COVERED.

INSIDE, YOU’LL FIND PRACTICAL TIPS ANDSTRATEGIES FOR MANAGING YOUR MONEY, CREATING A BUDGET, AND BUILDINGWEALTH. WE’LL SHOW YOU HOW TO CUTEXPENSES, INCREASE YOUR INCOME, ANDMAKE SMART INVESTMENTS THAT WILL PAYOFF IN THE LONG RUN.

SO WHAT ARE YOU WAITING FOR?

The Author Hassan MEKDAD

Table of Contents:

Chapter 1: Introduction.

• Explanation of What Financial Freedom Is.———————-Page 2

• Why Financial Freedom Is Important.——————————-Page 3

• How to Achieve Financial Freedom.———————————-Page 8

Chapter 2: Understanding Your Finances.

• How to Create a Budget.—————————————————-Page 13

• How to Track Your Expenses.——————————————-Page 19

• How to Save Money.———————————————————-Page 23

• How to Invest Your Money.———————————————-Page 30

Chapter 3: Debt Management.

• How to Get Out of Debt.——————————————————Page 34

• How to Avoid Debt in the Future.————————————-Page 36

• How to Manage Your Credit Score.———————————-Page 41

Chapter 4: Building Wealth.

• How to Build Wealth Through Investing.————————Page 48

• How to Build Wealth Through Real Estate.———————-Page 55

• How to Build Wealth Through Entrepreneurship.———-Page 69

Chapter 5: Retirement Planning.

• How to Plan FOR Retirement.———————————————-Page 81

• How to Maximize Your Retirement Savings.——————Page 96

• How to Retire Early.  ———————————————————Page 103

Chapter 6: Conclusion.

• Final Thoughts.——————————————————————Page 112

Chapter 1: Introduction

1-Explanation of What Financial Freedom Is

Financial Freedom Is the Ability to Live Your Life on Your Own Terms Without Worrying About Money. It Means Having Enough Passive Income from Investments, Savings, and Other Assets to Support Your Dream Lifestyle 1. To Achieve Financial Freedom, It’s Important to Define What It Means to You, Figure Out How Much Money You Need to Afford That Lifestyle, and Then Try to Live Below Your Means and Save the Rest 1. One Way to Quantify Financial Freedom Is to Multiply Your Expected Annual Expenses by twenty-five, Through the Multiply-By-25 Rule.

According to the Consumer Financial Protection Bureau, Financial Freedom and Well-Being Can Further Be Defined Through These Four Elements: Having Control Over Your Day-To-Day and Month-To-Month Finances, Having the Ability to Absorb Financial Shock, Being on Track to Meet Your Financial Goals, and Making the Choices That Enable You to Best Enjoy Life.

Many People Achieve Financial Freedom When They are Able to Live Off the Passive Income Generated by Their Investments. This Passive Income Could Include Interest Gained from Retirement and Investment Accounts, Money Received Through Rental and Other Real Estate Properties, or Wages Earned by Owning a Business 1.

FOR Example, Suppose You Need to Incur and Save $72,000 a Year to Fund Your Dream Lifestyle of Living in a City and Traveling Around the World Part-Time. You Currently Have $1.8 Million in Investments and Retirement Savings. Many Financial Advisors Say It’s Best Not to Exceed a 4% Withdrawal Rate of Your Retirement Savings During the First Year of Retirement if You Want Your Money to Last a Lifetime. Plus, It’s Best to Adjust the Amount Annually FOR Inflation. Using the 4% Withdrawal Rate Rule, Your Portfolio Is Already Generating the $72,000 You Need to Fund Your Lifestyle ($1.8 Million X 0.04 = $72,000). Therefore, You’ve Reached Financial Freedom.

Please Note That Financial Freedom Will Look Different (And Be Defined Differently) FOR Every Individual. A Few of the Many Factors That Impact Financial Freedom Include Your Individual Measurement of Quality of Life, Income, and the Area You Live In.

The Process of Working Toward Financial Freedom Can Be Broken Down INTO a Few Key Steps. First, Define What Financial Freedom Means to You. If You Had All the Money in the World, How Would You Spend Your Days? Second, Figure Out How Much Money You Need to Afford That Lifestyle. Third, Try to Live Below Your Means and Save the Rest. Fourth, Invest Your Savings in a Diversified Portfolio of Stocks, Bonds, and Other Assets. Finally, Monitor Your Progress and Adjust Your Plan as Needed.

2-Why Financial Freedom Is Important

Financial Freedom Is Vital FOR Leading a Fulfilling and Meaningful Life. When We Have Financial Freedom, We Have the Flexibility to Make Choices That Align WITH Our Values and Priorities. We Can opt to Work Because We Find Purpose in It, Not Because We Are Chained to Earning an Income. Financial Independence Opens up Possibilities FOR Self-Actualization That May Not Be Realistic When We Live Paycheck to Paycheck. There Are Several Key Reasons Why Achieving Financial Freedom Should Be a Priority FOR Most People.

More Control Over How You Spend Your Time

Too Often, We Waste Our Most Precious and Finite Resource - Time - At Unfulfilling Jobs Just to Pay the Bills. When You Reach Financial Independence, You Gain Back Huge Swaths of Time to Spend as You Wish. You May Pour That Time INTO Family, Hobbies That Energize You, Passion Projects, Travel, Learning New Skills, Starting a Business or Pursuing Volunteer Work. Financial Freedom Gives You the Control to Align How You Spend Your Days WITH What Matters Most, Rather Than What Brings Home a Paycheck. This Makes It Much Easier to Lead a Values-Driven, Purposeful Life. 

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Reduced Stress and Anxiety

Money Is Consistently Cited as the Top Cause of Stress for American Adults. Constant Worries About Covering Expenses, Job Security and Debt Take a Major Toll on Both Physical and Mental Health. Achieving Financial Freedom Can Greatly Minimize This Stress, Replacing Feelings of Scarcity and Instability with Confidence. When Your Assets Produce Enough Passive Income to Amply Cover Necessities, You Can Finally Exhale Knowing Bills Will Be Paid Even if You Lose Your Job or Face an Unexpected Emergency Expense. This Grants Tremendous Peace of Mind That Trickles into All Areas of Life.

More Resilience in Challenging Times

Life Inevitably Serves up Challenges Like Illnesses, Accidents, Economic Downturns or Natural Disasters. Those Without Firm Financial Footing Often Struggle Severely or Even Face Total Collapse. Look No Further Than the Hordes of People Unable to Make Ends Meet After Losing Jobs During COVID-19. When You Reach Financial Independence, You Have a Personal Safety Net Allowing You to Bounce Back from Any Crisis. You Have the Savings and Alternative Income Streams to Sustain Yourself. This Builds Critical Resilience Most People Lack Today Thanks to Overspending and Under Saving. With Resilience Comes the Freedom Not to Panic Even When Situations Look Grim Financially.

Option to Retire Early

Pursuing Early Retirement Is a Dream FOR Many Workers Fed up with the Daily Grind. Without Robust Savings and Passive Income Sources Though, Early Retirement Tends to Be Unrealistic. Some Are Stuck Working for Decades Longer Than They Would Prefer. With Financial Independence Comes the Option to Retire Decades Before Your 60s if So Desired. You Could Even Consider Mini-Retirements or Sabbaticals Periodically Before Fully Stopping Work. The Flexibility This Brings for Career Breaks Can Reduce the Risk of Burnout While Creating Time to Follow Passions. Geographic Flexibility to Move or Travel Opens up as Well Without Job Ties. Even if You Love Your Work, the Ability to Retire Early or Take Mini Retirements Is Hugely Valuable.

More Capacity to Help Others

FOR Those Who Wish to Aid Important Causes or Help Other People, Financial Freedom Expands That Capacity Tremendously. Philanthropy Becomes an Option When Income Flows Freely Without Needing to Work. Volunteering Is Easier to Fit into Your Schedule Consistently When Money Stresses Do Not Force You to Work Long Hours. Being Able to Help