Your journey towards financial freedom isn’t complete without a mountain of challenges and obstacles that come with life. However, for you to conquer and achieve the dream of financial freedom, you must learn to face and conquer these obstacles. Today we highlight six enemies you should be aware of that are a great threat to your financial freedom. The sooner you take action against them, the sooner you achieve wealth.
Inflation hurts people particularly those in fixed incomes like most of the employed working class whose salaries is not indexed to inflation. They lose a part of their purchasing powers because their income remains constant while their cost of living increases. Employed individuals, despite receiving constant salary increments, are hurt because there is a time lag in compensation adjustments.
It simply refers to the habit of putting off doing something for a later time. Kenyans are perfectionists when it comes to procrastination. They always put on hold doing tasks and wait until it’s too late and then make a last minute dash. This bad habit is an enemy towards your financial freedom and you better soon act on it or your financial situation will always be wanting.
This is the buying of goods without planning to do so in advance, as a result of a sudden whim or impulse. Whenever faced with an urge to buy something unplanned, it’s advisable to pause and ask yourself several questions first. A simple dialogue with yourself is a powerful tool towards avoiding unnecessary spending. Embrace frugality, a lifestyle of living well within your means. It means spending less than you make so that when a crisis arises, you can weather it calmly knowing you have both the savings to survive and practice using your money wisely
Dealing with your finances can be frustrating at times, especially when you’ve been working so hard to save and invest and then a financial emergency would come and ruin your plans. However this shortcomings in your financial plans should not derail you from achieving your financial freedom, they should inspire you to save more and have better financial management skills.
This is when you increase your spending when your income goes up. Lifestyle inflation tends to continue each time someone gets a raise, making it perpetually difficult to get out of debt, save for retirement or meet other big-picture financial goals. Lifestyle inflation is what causes people to get stuck in the rat race of working just to pay the bills. To achieve financial freedom, it’s advisable to keep spending constant even in the case of a salary increment. Earning more money gives you a better opportunity to save more.
Most Kenyans prefer the comfort of an assured monthly income to the unpredictable world of entrepreneurship. The difference between employers and employees is that employers are willing to take a bigger risk and invest while later are the exact opposite. To be financially independent, you must be willing to take risks for you make any forward steps towards financial freedom.
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