Everybody dreams of affording the lifestyle they want without running up debts, but not everybody makes it. This goal is only achievable through hard work, education, and discipline. Entrepreneur Simon Kronenfeld’s journey shows what you can accomplish by developing these traits, as they have taken him from washing dishes to owning major businesses in just a matter of years. Regardless of your current situation, you are in control of your future. This is Kronenfeld’s advice on creating a plan to reach financial freedom:
Set out SMART Goals
SMART stands for Specific, Measurable, Achievable, Realistic, and Timely. These principles help you turn a high-level goal into actionable and achievable milestones. This strategy will give you a better understanding of what you want, but also the steps you need to take to get there. Simon Kronenfeld is a believer in the theory that nailing down the specifics of your goal creates a higher likelihood of achieving it. Visualize your goals. Write them down. Remember what you are working for when times get tough. Often people give up because they have lost sight of their original goal. If you bear your goals in mind at all times, not only will it be easier for you to see what needs to be done, it will be easier to find the motivation and determination to see it through.
Pay Off Any Debts
Debt is the opposite of financial freedom. Accumulated debt will weigh you down in the future and hinder you from reaching financial independence. As a result, paying off your long-term debts needs to be a top priority in your plan. There are many methods for managing debt, and the right one depends a lot on your specific financial situation. Begin with a structured debt repayment plan, and find ways to reduce your regular expenses so that those finances can be redirected towards resolving your debt. While your quality of life matters, you can probably cut down your spending on entertainment, going out, and other luxuries and still be able to enjoy life. Hold yourself to the new budget and debt resolution deadline you set yourself. If you stick with it, your debts will be paid off before you know it.
Know Your Investment Options
Different investments yield different results. Contributing to a 401(k) or IRA account is an important step to ensure financial security in your eventual retirement years. This is just the basics however. Besides this, make sure that you know which type of accounts work best for your goals before making any decisions. For example, a 529 plan is ideal for creating a fund to put your kids through college. On top of these investments, be sure to set aside some of your money to put into a high-yield savings account. This will act as your emergency fund, but otherwise you won’t touch the funds you put in there. While it is tempting to invest all your money into more immediate ventures, investing and saving wisely will help you avoid financial problems in the future. Knowledge of your investments needs to be paired with the necessary education in your chosen market sectors to truly pay off. For example, Simon Kronenfeld became a real estate investment success by properly evaluating future land values as he was getting started.
Financial freedom is within reach for anyone that is able to be patient, stay motivated, and put in the hard work. Keep these tips in mind when building your own plan to fully realize your potential. Simon Kronenfeld’s journey from a 15-year-old immigrant to a real estate millionaire offers both inspiration and an example of how to achieve success through smart investment. Find someone you look up to and aim to understand the mindset that enabled their success, and learn from their mistakes and successes.