The Power of Reducing to Gain Financial Freedom

When we think of building wealth it usually sounds like “add more, add more, add more”. While somewhat true, at Freedomology we like to focus on how you can scale back in order to keep more money in your pockets. I like to call this Reducing, focusing on reducing negative money thoughts, bad debts, and nonessential expenses.

Challenging Negative Money Thoughts

Without even realizing it, most of us carry around negative money thoughts. This also probably isn’t your fault, growing up hearing “we can’t afford this”, or “money is the root of all evil”. From the day we can understand the concept of money we are taught to view it as a scarcity, like the opportunity to make more is nonexistent. When this is embedded so deep in our heads it can lead us to self sabotaging and keeping us financially frozen. Flipping the switch to create new positive money thoughts such as, “how can we afford this” instead of “we can’t afford this” is going to catapult the way you make, spend, and save money. 

Tackling Bad Debt

One of my favorite sayings goes– All Debt is Not Created Equal. Some people think it should be avoided, but debt isn’t always a bad thing. Sometimes taking on some debt can lead to huge returns on your investment. Going into debt for schooling or creating a business isn’t something that should be frowned upon, it’s an investment in your future self and you should look at it that way. While on the other hand, high interest credit cards or quick payday loans are a TRAP. If you’ve found yourself in bad debt, don’t be scared of it. The best thing you can do is face the beast head on, put pen to paper and write out all the bad debt you have accrued. Create a game plan and with every paycheck you should be putting money aside toward your debts, no matter how small the amount. The important thing is that you are committing to change for a better future. 

Cutting Unnecessary Expenses

How serious are you about achieving financial freedom? Reaching this can feel uncomfortable at times. What we have created at Freedomology is something we call the ICCY (interested, committed, and crazy about) filter to make the spending process less stressful. What this will do is help you navigate whether your spending is aligned with your values. It will get you thinking about if you’re spending money on things you’re sort of interested in or absolutely crazy about. ICCY gives you a more black and white way of viewing your future purchases. Making it a lot easier to understand what items are worth the money and which you are better off without in the long run. I want you to really work toward this new outlook, and you will start to see your savings skyrocket! 

The process of reducing is not supposed to make you feel restricted or as though you are depriving yourself but rather dropping the dead weight before climbing up the mountain towards financial freedom! If you’re ready to lock in and get climbing, join our financial sprint f/40 in the Freedomology App.