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The True Meaning of Financial Empowerment

The True Meaning of Financial Empowerment

Ask yourself a question: what do you think about being financially empowered?

Is it something that you can only achieve with age? Or with a certain amount of money? Or is it just a concept that advisors use to lure common people to work for their benefit.

If you ask us; we believe that being financially empowered is a shift in mindset towards being more aware and learning financial discipline.

In the other sections of this website, we have discussed a lot about not being dependent on paychecks and looking for a passive income stream for oneself. However; from a broader perspective, the mantra to attain financial empowerment is simply ‘Think long-term.’ You can do this on your own or with the help of a skillful; & trusted advisor.

The first step in ‘Thinking long-term’ is to realize that all your financial decisions will have consequences. And the step that follows it is to eliminate the risks of the negative consequences in the long run.

Remember this core principle ‘Financial empowerment is not about getting rich, but it is more about taking full control over every financial decision of your life’. It is about handling money because let’s face it. Handling money is a daunting task, and even the richest people have a tough time taming this paper tiger. Example, Nicholas Cage!

This post won’t make you feel empowered as soon as you finish reading it; but we can help formulate a path for a shift in mindset.

Steps That You Can Follow To Start This Journey

Take Charge

Taking charge of your financial decisions is the foremost step towards achieving financial empowerment. You need to focus on creating a financial cushion for yourself as we are well aware that life has the potential of hitting you in your face; with a steel bar. In such times, you must be financially protected and not uprooted from your defined path.

Make A Plan

Many people get misunderstand ‘Budgeting’ as ‘Projecting,’ but it is not the same. Budgeting, in simple terms, means making a list of your inflows and outflows that occurs during a defined period. Think of this as a vision statement.

While creating a budget, you should be true to yourself and, more importantly, ensure that you are putting down rational inflows and not the income; of your dreams. The budget should be quantifiable i.e.; which can be measured easily as this will help you or your advisor to set a plan and control it in cases when you tend to deviate from it.