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Achieve Financial Freedom Within 5 Years

achieve financial freedom within 5 years
We help you achieve financial freedom one step at a time.

Whenever I ask people what is their long term financial goal in life, I often get the same response – “I’m saving for retirement. I want to have enough money so I can do whatever I want when I’ve retired. I want to be financially free eventually.”

Ask yourself this question:

How would you spend your remaining years if money weren’t an issue?

You should seriously think about the answer, and ask your spouse if you have one. This question is the entire objective of this website. If you have an answer for it, you can probably appreciate the idea of financial freedom. It is much more than just having money, it is a lifestyle freedom.

It is the freedom to be who you want to be, and make life decisions without worrying about financial constraints. The true reward of financial freedom is to live your life the way you want it, and you probably don’t want to wait until you are 65 years old to do it.

You can achieve financial freedom a lot quicker if you are willing to dedicate time and effort into it. While managing your own finances is not an exact science, there are certain ways that can help you build wealth that much more quickly and effectively.

Therefore, at MasterMyFinance.com, we provide you actionable, step by step guides to better personal finance:


Step 1

Assess Financial Health

This part explains how to determine your current financial health. You will learn how to calculate your personal net worth. You may also find missing links in your personal financial knowledge and learn how to diagnose your overall financial fitness.


Step 2

Establish Emergency Fund

The purpose of emergency fund is to cover you from unexpected life events – temporary loss of job, car breakdown, emergency hospitalization, and much more. This is the bare minimum amount of money you should have at any point of time. We also cover strategies that can help you establish your emergency fund in the shortest time possible.


Step 3

Clear Debt Fast

Debts can quickly snowball into uncontrollable amount, but luckily we can use the same principle to clear debts too. List down your debts (except for mortgage) in order of smallest to biggest and focus on paying off by the order to gain momentum along the way.


Step 4

Create Extra Income

You have built your emergency reserve and paid off your debts. It’s time to begin some serious wealth building. We cover the amount of savings you should have in your bank account and what you should do to increase your earning potential using your free time. You will probably still need to keep your day job at this point while supplementing your income from additional sources.


Step 5

Getting Covered with Insurance

Insurance is a vital part of your financial life. Unfortunately, most people shun this topic as it is often considered overwhelming and dreadfully boring. If you have insurance(s), you are probably paying more than you should. This part tells you all you need to know about buying the suitable insurance without overpaying.


Step 6

Convert Active into Passive Income

Once you have everything covered, it is time to convert your active income streams into passive income by investing. Discover the twin engines concept that will propel you to financial freedom! This is an advanced concept of financial freedom that will provide you consistent income to fund your desired lifestyle. Find out how much you need to achieve financial freedom and the safest way to achieve your life long goal of financial independence.

 

Where should I start?

 

So, instead of pondering if you should save now or invest now, you should first assess your financial health and see where your financial standing is. Just like tailoring a pair of comfortable shoes to your foot size, everyone has different commitments and risk appetites, so there is no one-size-fit-it-all planning. However, there is a general guideline that works well for everyone to provide us a solid base for our financial house.

When it comes to taking care of personal finances, there is no better time to start than right now.

43 Comments

  1. zach

    I like the way you think. You have really simple and easy to follow steps. Some books or other resources that help you become better financially overwhelm you with long processes that seem impossible. You make it simple and easy! great resource, and I most likely will be checking back in.

  2. Kay

    I would like to read the complete whole 5 steps but when i click then on the blue words what are connected to a link from your website here it shows always error 404.that it can be the side would not exist anymore or ever exist at all.i tried it with firefox and internet explorer both sowing me the same error 404.Any suggestion for me?

    Btw so far i like this website.Just to bad about this error.

    Is there a way to keep in touch with you?I would have some questions to you what i don’t want post here in the comments.

    • Hi Kay, thanks for bringing that to my attention! I was updating the website and forgot to change the link. I’ve fixed it, you should be able to access it now!

      You can email me at edward@mastermyfinance.com, I’ll help you if it’s within my ability.

      Cheers,
      Edward

  3. Sam Lynn

    I like this very much! 🙂

    Sam from wa!

  4. Nnanna Uma

    Hi Ed,
    When I started reading the post, I thought it was going to be one of those big talks about a big future that seldome handle the details of the path to this future.
    But you’ve done the needful. You carefully x-rayed the entire process. I like the way you stressed the need for an assessment which is a primary tool in determining where we’d go from here.
    I believe your post will inspire many others like me to have a more healthy and productive financial life.
    Well done on a good job.
    Cheers!
    Nnanna.

  5. Tom

    Hi there Edward,
    The common thread throughout all of your comments are spot on the money. Until Governments around the world recognize retirement saving education needs to be introduced into school curriculum’s there will always be an ongoing issue with retirement and money. Thought that you have laid out the foundation very well and easy to understand and follow. Well done.

  6. DanielHauge

    I love the way you have done this. The layout is so awesome with the step for step program. It’s a very creative and userfriendly way to do it. Also, the content you are providing seems to be very professional. I definitely wanna check out some more of your stuff 🙂
    Well done Edward!

  7. James

    Edward,

    I love the methods to reduce debt that you mentioned.

    Using a list of debts from smallest to biggest is a good way to get them paid off and also good because if you start with the small and easy to pay off debts, you actually see some progress, which will give you that all important boost to keep it up and pay off the next debts.

    If you start with your biggest debt, you’re only setting yourself up for misery along the way, because all the smaller ones still exist and cannot yet be crossed off the list.

    I’ll be back to read more of your interesting takes on financial freedom and wealth building.

    Thanks for taking the time to write this for all to see.

    Live Long and Prosper, in the words of a Vulcan named Spock!

    James

  8. tatihden

    Hi there,
    I love your approach to the topic of achieving financial freedom. I really love your step process especially the one about establishing an emergency fund (my husband and I call this the rainy day fund).
    It is nice that you gave a time frame that lets your readers know that you don’t achieve financial freedom over night.
    Keep up the good work

  9. Matthew Thomas

    If you ask people if they desire financial freedom, almost 100% of them will say yes, but not many people put into practice the strategies that can get them there.

    I think one of the major reasons behind this is that people like to see immediate results. This type of impatience makes them think only about the short-term, instead of the long-term, which is necessary for financial freedom.

    The time value of money shouldn’t be underestimated. What do you think?

    • Edward

      You’re right, this is the reason why there are so many get-rich-quick scams all over the internet.

      Most people can’t wait to generate huge profits, but it takes time and consistent effort. Financial freedom is a long tern endeavor.

  10. ANTHONY LITTLE

    Hey Edward I just wanted to give you a little feedback on your website. First of all awesome job and your content marketing about financial freedom your article was very interesting . I really like your about me page and how you have incorporated the wealthy affiliate business for your readers to start their own business online. Master My finance was very clean and very easy to navigate through your content. Overall very good job on your website best of wishes.

  11. Gideon

    Great post! You see alot of similar content out there but I like that you provide simple and effective advice people forget to implement when they are trying to achieve financial freedom. It’s all about how you handle your money at the end of the day. Good luck for the future.

  12. Branka

    You are so right! It is incomprehensible to me that school system haven’t found out yet that these are things we should know before we turn twenty!

    You can’t do anything without planning your finances.. unless you are very very lucky 😀

    Thank you so much for these info, will take my time to go through material.

    • Edward

      Hi Branka, glad you liked it.

      If school doesn’t provide personal finance education, the responsibility lies on our own shoulder to find out and learn more. The more we know, the easier our lives become. Hope you’ll learn something here!

  13. Chris Towers

    I think you highlight some important points here and dealing with debt is a huge problem.

    I know what you are saying too, these debts are not necessary for luxury items. I mean we all want a house and a car right? These are requirements and far from a privilege!

    You give some great advice here on dealing with money and I think it will serve to help a lot of people!

    Thanks

    Chris

  14. Aless

    Hello, I like the concept of financial freedom. I’m also on track to achieve mine. I don’t know if I will succeed. I think that’s my major problem. Fearing the effort will be for nothing. I hope not tho. I like how you divide the process into steps. It is easy to understand and somewhat captivating. Nice post.

    Alex

    • Edward

      Hi Aless,

      There’s always a risk of failing in anything we try to achieve in life. The question is whether you can get back on your feet after each setback.

      Don’t fear your effort will be for nothing. Whatever you are doing now adds to your skill set, and opens up more opportunities in the future, even if you don’t really succeed in your current endeavor.

      Financial freedom is within reach if you work consistently towards it.

  15. Kav

    Great site and great contents.
    I also read the rich dad poor dad. I haven’t arrived at the Fiancially free zone yet but I’m definitely almost there. The internet has also made it possible to make this journey easier.
    Keep up the good work.

  16. Jess

    Hello, Edward!

    Great article on achieving financial freedom in 5 years. It’s funny really because I managed mine in about 4 years, so I feel like you are right on track with your timing.

    I first read Dave Ramsey’s “Financial Peace” and Robert Kiyosaki’s “Rich Dad, Poor Dad” when I was in my late teen years. Those two books changed my life after I finally got smart enough or mature enough to follow the steps in those books.

    This article provides easy steps for anyone to follow. Love it! Thanks!

    Jess

    • Edward

      Hi Jess,

      Congratulations on achieving financial freedom!

      I got started with rich dad, poor dad too. It really changed my view about working the entire life as employee vs accumulating enough passive income for financial freedom.

      Glad you like the article!

      Cheers,

      Edward

  17. Alyssa

    Hi Edward,

    You are writing on a topic that is near and dear to me. When I was 25 years old, I read Retire Young, Retire Rich by Robert Kiyosaki. And I was hooked on retiring looooong before 65. Fast forward too many years, and we are finally on the right track. We’ve eliminated non-productive debt and created a stream of passive and semi-passive income.

    Non-productive debt is, in my opinion, the biggest threat to financial freedom. We’re are on a path to “retire” in less than 5 years. And by “retire” I mean walk away from our current cubicle jobs. We might end up taking part time jobs just to supplement our passive income, but those jobs will be our terms! And I’m learning how to make money online – I don’t like keeping all of our eggs in one basket. Diversification is key.

    You’ve got a great website and an inspiring message. Thanks for sharing your knowledge and expertise. You have the chance to help so many people!
    -Alyssa

    • Edward

      Hi Alyssa,

      It’s always inspiring to read one’s story where a great goal is achieved after careful planning and consistent hard work.

      Congratulations on finally achieving financial freedom! Thanks for dropping by and wish you realize your goal within 5 years, as planned!

      Cheers,

      Edward

  18. Dave

    Hi Edward,
    There is such great advice here. People are alway talking about money and always want more of it but never really take action to change anything! I’m on Step 4 at the moment, and I’m starting an online business using Wealthy Affiliate. Thanks for the good advice, I’m off to read some of your other posts and get started making money online!

    • Edward

      Hi Dave,

      Taking actions is always the key. You are on the right track, keep up the good work!

  19. RuthM

    Excellent article, It’s nice and simple. And gives you structure to work to. I would like to take the time to read each of the sub articles that you link to so I will bookmark this page and come back to it.

    I had a quick look and it looks like some good tips to start thinking about. Thanks!

  20. Mark

    Hi Edward

    Thanks for these tips. It’s everyone’s dream to try and achieve financial freedom but very few people actually reach their goal, sadly.

    Clearing debt is probably one of the most important steps of all, but one that many people like to try and ignore. Building extra income is exciting, but getting rid of your debts if far more useful. Gaining financial freedom is a long process and there aren’t any shortcuts!

    • Edward

      Hi Mark, yes clearing debt is often the most urgent step to get your finances going. Gaining financial freedom and upgrading your standard of living is a life long journey!

  21. fox

    Hello there, reading this article really taught me something about finance.
    i’m glad I read this post because this is a real website which will teach real stuff on how to get your personal finance to your own hands and start making money!
    I think i will spend some time hare in your website to keep exploring and learning new stuff, i am sure i would be pleased.
    cheers, fox

  22. Kat

    Hi, I went one really cool seminar in London on managing your money and getting financially free. They talked about 7 jar system where you manage your income into 7 different jar (accounts). That way, you learn to work with your own money, get yourself under “I want this” control and it works. it’s super easy but it works, every month there’s more and more money in my account..and I just had to thought how to control myself 🙂

  23. Patrick Larkins

    Hello, my name is Patrick. You have a very good looking site. I like the theme you are using. That looks awesome.

    Your content is informative and easy to read. The images you do have to look professional and good. I would, however, try and add a few more images to your post. There is a plug-in I’m using called photo dropper. You can get free photos to upload to your website. Just a though.

    Your drop down menu looks good. If I may suggest, the pages that don’t have drop downs, I would probably move to the sidebar. Just create another menu and you can name it something like important pages.

    Other then that you are doing a great job. Keep up the good work and good luck.

    • Edward

      Hi Patrick, appreciate your feedback. I’ll definitely look into photo dropper and custom menu. Cheers!

  24. Robin Hayes

    Hey Edward, Robin here from Minnesota, I have some credit debts now but I’ve been thinking to start my business for some time. Will you recommend that I try regardless?

    • Edward

      Hey Robin, I recommend that you evaluate your financial health and responsibilities before committing to it.
      1) Do you have your emergency fund saved up?
      2) Do you have dependents in your family that depends on your income?
      3) Does your business require a lot of capital? What are the risks?

      If you don’t have a clear idea in mind and just want to start something, I recommend that you take a look at this.

      • Robin Hayes

        I don’t have a concrete idea yet, so I think I will focus on clearing my debts first and starting my business as side with no capital. Thanks for the link!

  25. I’m curious to find out what blog system you are utilizing?

    I’m experiencing some small security problems with my latest blog and I’d like to
    find something more risk-free. Do you have any recommendations?

    • Edward

      Hi Stewart, I’m receiving spams here and there too. I’m using Akismet along with SI captcha anti-spam plugins on wordpress to filter spams.

  26. Kenny Cox

    Been looking for site that details a step by step guide.. Down with multiple credit card debts and student loan, hope I can achieve financial freedom someday.. Thanks for the guide!

    • Edward

      Hi Kenny, glad it helps you! Contents are still being added frequently, do let me know if you want certain topics to be covered!

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