Obstacles to Financial Freedom

Obstacles to Financial Freedom

The road to financial freedom is private and personal. You cannot rely on someone or something else to pave the way for you. Remember that there is no such thing as easy money. You cannot grow riches overnight. It is you alone who can control this journey. You alone can set the course toward your goal of achieving financial stability. However, you must be aware of the obstacles to achieving your financial independence. Recognizing these and taking appropriate action can prevent you from going through the pitfalls of financial instability.

These obstacles consist of the following:

1. Procrastination – Imagine delaying the application of your $60 savings earning 10% per year for only one year. you will lose more than $2,740 40 years from now. Now think again. Can you afford missing this chance? And for what? For buying one can of soda a day?

2. Inflation – Inflation is defined as the rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. Inflation cannot be stopped. It is as certain as waves reaching the sand in the beach. Because of this, it is imperative that our savings be invested in institutions offering interest rates higher than the inflation rate of your country. If you invest in with interest rates lower than the inflation rate, then the money you earn from the interest is not enough to keep up with current prices.

3. Yourself – No one is perfect. People, no matter how well they have been brought up, have negative values that hinder them from achieving financial independence. Some of the most common negative values are fear of failure, laziness, negativism, bad spending habits, and lack of emotional and financial intelligence. All these can block our path to financial success. It may be hard to change these habits, but sheer determination and reminding yourself frequently of your goals can help you improve.

Putting all these in mind and reminding yourself constantly that there are certain factors that can drag you down in your quest for financial freedom can help you immensely.

Source by Roscar Cunanan