The reason why financial experts recommend cutting extraneous costs and increasing savings is to give you an edge when it comes time to confronting life’s ups and downs. But while increased savings can certainly help you on your road to financial stability, living a dull life really isn’t in the cards for most people. You might be a fan of the FIRE (Financial Independence, Retire Early) movement, and it certainly is a worthwhile concept to consider if that’s your jam. 

At Moneyblade, however, we believe you can approach your financial journey in a smart way that’s tailored to you. If you can cut costs like a scissor-wielding fanatic, good for you! If you can’t (or you just won’t because your life isn’t worth living without that latest iPhone, Louis Vuitton or trip to the Bahamas), then your only option is to increase your income to increase your savings.

What form that opportunity takes is up to you. You can get a second job or change the one you have, create a side hustle, join the gig economy–pretty much anything that helps you bring in extra money. And throw all that income into a separate bank account, because those savings are the starting point for your journey towards financial freedom.

When you have enough funds to make ends meet, the extra needs to go back out into the world. It’s scary, no doubt about it. Investments can and do fail. In fact, 90% of businesses go bust in less than a decade. But investing is one of the secrets to building wealth. 

We don’t mean investing just in the stock market, though. Investing your funds means taking them out of the relative safety of your savings account and putting those dollars to work for you. Wonder why the top 1% pay less in income taxes than you do? Or how they manage to work only a couple of hours a week and still have more money than you could over a lifetime of effort? 

They invest. They invest in their own businesses and in others’. Put that hard cash to work for you and, with time, you’ll be able to reap the benefits just like you wanted.

Part of building wealth is betting yourself and your future on a dream. You can bring in more income, save the extras and throw some into investments, but the real money comes when you build your own business. It doesn’t have to be fancy; it just needs to serve a purpose. 

The mistake that many people make is launching a business that ends up being a one-person show. But that’s essentially no different from getting a second job or upgrading the one you have. You’re still technically self-employed – just an employee of your own, one-person company. Financial freedom is not only having more money, it’s freeing up time to do what you want. And you can’t accomplish that if you spend as much time on your business as you did when you were working your 9-to-5. 

Launching your business means taking your future into your own hands. You already made the first step when you decided to free up funds to invest and build a business, but many people stumble when it comes to the finer details of taking those next steps. Use these ideas to stoke your creativity and capitalize on all the legal and financial benefits exclusively available to business owners. Be smart with your savings. 

Financial success is highly relative and depends a lot on where you live and what you envision for yourself. Generally, however, most people aim for financial freedom to either have more time or more money to spend on a higher-cost lifestyle. 

Anyone can achieve financial freedom, but you don’t have to live like a secluded monk to get there. Whether you already have the extra funds from a well-performing business or investment, or you simply want to indulge from time to time, spending smartly is an important part of living financially free. Just because you have the money doesn’t mean to have to spend it all. Every dollar that you spend could potentially be invested and make you millions. 

A cornerstone to this Pillar is conscious consumption. Ask yourself if that BMW or Chanel handbag actually makes you happy. Or are you buying things for immediate gratification? To keep up appearances? Imagine you’re considering leasing an expensive car for $800 a month. In that case, you should have bucketloads of cash inflows to support that expense or you’re really passionate about cars. If neither of these categories apply, you may be better off springing for a somewhat cheaper car and investing the rest. 

Spend wisely so you can continue working your way towards your dreams.