For many people financial freedom is a dream they can only see when they close their eyes, for others it is a reality they live. But for the wise it is a journey that anybody can embark on. 

Like every other journey, financial freedom has step by step processes that lead up to the destination.

These steps might look different for everyone but here are 5 steps to financial freedom that are common to everyone.

Step 1

Financial Awareness: As doctors often say, identifying the diagnosis is half the battle won. Before you can make sound financial decisions, you need a clear picture of your income, expenses, debts, assets, net worth and overall financial health.

What Financial Awareness Looks Like:

a. Knowing how much you earn, where your money goes, and what you own.

b. Identifying financial leaks—small, unnecessary expenses that add up over time.

c. Understanding your debts and their impact on your future financial growth.

d. Knowing the ratio of what you can afford.

This stage calls for informed action. Even if you cannot afford to save or invest, knowing your options is a step in the right direction. This will help you plan your financial goals and choose the appropriate wealth building methods for you. Thankfully, Bravewood prime encourages moving at your own pace and has a store of financial literacy articles that can help you navigate this period.

Step 2

Financial Tightness: Once you understand your financial state, the next step is controlling expenses and making conscious financial decisions. This brings about the state of financial tightness. During this period you’re minimizing wasteful spending, building discipline, ensuring sustainability and optimizing resources to reach your financial goals. This stage comes with a lot of prioritization, it is a temporary stage that encourages you to spend only on the bare minimum to get ahead in your goals.

What Financial Tightness Looks Like:

a. Eliminating unnecessary costs while maintaining a decent lifestyle.

b. Creating and sticking to a budget that prioritizes savings and investments.

c. Tracking expenses to ensure financial discipline.

d. Spending only on the most basic needs.

This is probably one of the hardest stages on the journey. You’re constantly fighting yourself and your old habits as you struggle to form new ones. You’ll feel very restrained and limited, it’s no surprise that this is where most people give up. The good news is if you pull through this stage you may never have to go through it again. With Prime and the wonders of compound interest you won’t have to spend too long in this stage. The 16% annual interest rate will make whatever you put into it double in only 4 and a half years bringing you closer to your goal faster.

Step 3

Financial Security: This is the stage where your money starts to feel enough. Your bills are paid on time and there’s a good amount left over. You also know where your next paycheck is coming from and you have no lack or money worries. It means having safeguards in place to protect you from unexpected financial setbacks. It ensures you can handle emergencies without derailing your financial journey. 

What Financial Security Looks Like:

a. Building an emergency fund with at least 3–6 months’ worth of expenses.

b. Paying off high-interest debt to reduce financial stress.

c. Securing insurance (health, life, or property) to safeguard your assets.

d. You invest in Passive Income Channels.

So you’re already enjoying the wonders of compound interest and now you even have more to invest. While you study up on the many diversities in the investment market, Bravewood Prime is still a trusty partner to keep your money safe. Remember safety first at all times. Topping up your investments means more interest which means more compounding. Too often the wrong decisions can make people in financial security fall back into the tightness stage. 

Step 4

Financial Independence: In this stage you can finally create a more flexible budget. Spontaneity is no longer an enemy and your limits are elastic. Once you have control over your finances and a security net in place, the next step is financial independence—Investing wisely generating more passive income through investments to support your financial goals. 

 What Financial Independence Looks Like:

a. Investing in diversified assets like stocks, real estate, mutual funds, or fixed income.

b. Generating returns that supplement (or replace) active income.

c .Strategizing long-term financial growth to build generational wealth.

d. Actively putting money towards retirement.

Now your options are more and risk tolerance has grown, Congratulations. But if you’re investing towards a retirement fund big risks are not an option for you. You may be daring with other funds but your retirement needs a safe and low risk space to grow quietly and steadily over the years. Prime can do that for you.

Step 5

Financial Freedom: This is the ultimate goal, You no longer have choices but you can create new options if you wish. It means reaching a point where your investments generate enough passive income to cover your living expenses, giving you the freedom to live life on your own terms. 

What Financial Freedom Looks Like:

a.Your assets generate enough income to sustain your lifestyle.

b. You no longer depend on a paycheck to cover your daily expenses.

c.You have the flexibility to travel, retire early, start a passion project, or give back to society.

d. You can create your own options and make dreams reality.

These 5 steps to financial freedom makes wealth building a possibility for anyone who sets their mind to do so.

Even when you’ve made it out of the rat race and you can afford to lose some money in investments, Bravewood Prime is still a great option for an effortless passive income channel. The wealthy stay wealthy by using money to generate more money, even better when you can do so mindlessly. In fact Prime is your perfect partner here because 16% is much more when you have a lot to give. Whatever stage you find yourself in your financial journey, Bravewood Prime is the tool that will take you where you want to be. It’s simple, flexible and mindless to use.  

Bravewood provides Nigerian professionals with low-risk, high-return investment products, licensed by the Central Bank of Nigeria.