Is Financial Freedom Possible during an Economic Crisis?

When a crisis hits, people panic. Some sell their stocks. Others reduce their spending. Many try frantically to refinance their debts, and all for good reason. Nobody wants to lose money. Nobody wants to be caught unable to pay the bills. Those who had started on a path to financial freedom, a life free from the need for job with a set salary, may feel that they need to put their goals on pause. There's a certain security that comes with a salaried job that you must leave behind when you choose to become financially free. You need to be able to support yourself completely during a financial crisis and you cannot predict how long the crisis will last. How do you retain your financial freedom during a crisis? If you are still on the path, but not there yet, how do you stay on the path to financial freedom? Here are 3 important tips:

1. Look for additional sources of income. Maybe you run a business that has replaced your previous salaried job, or maybe you are still at your salaried job and are on the path to replacing it. Continue on your path, but consider adding an additional source of income. You can affiliate your business with another one and promote their products for a commission. You can also add more products and services to those your currently offer.

2. Continue to pay yourself first. Paying yourself first is an important step to financial freedom. If you stop saving, you will interrupt your path to financial freedom. Even if you have to reduce your spending drastically, be sure to keep up with your savings during a crisis. Avoid interrupting your financial growth or you will risk extending the time it will take to become financially free. If you are already financially free, interrupting your savings will set you back and possibly prevent your from maintaining your freedom.

3. Assess your savings vehicles regularly. Ask yourself, "Is this savings vehicle really a savings vehicle or is it an investment?" An investment involves the possibility of loss, while a savings vehicle does not. If what you believe to be your savings is actually an investment, you could lose money during a financial crisis. Although there is a possibility of recovery, there is no guarantee. Make sure your savings are in a vehicle that does not ever allow the value of your money to go down. Keep your savings and investments separate. Here is an example of a savings vehicle whose value never goes down. It allows you to access it for expenses and emergencies without depleting it.

Financial freedom is a goal worth pursuing. When planning for financial freedom, we need to work in the possibility of a financial crisis and plan for it.