We all know that feeling when we are looking for a job but still need to pay next month’s rent. How are we going to make it? In a stretch, we can always take small gigs just to allow us to pay the bills to the detriment of our most precious asset: our time. But we also might have been on the opposite spot, where you were able to invite your best friends for dinner, or book that music festival ticket just because… well you wanted to. That’s what financial freedom feels like.

What is financial freedom?

Financial freedom is the point you get in your life when you are no longer dependent on a day-job in order to survive. It is the moment when the investments you have made over time are self-sufficient and are now generating enough cash flow for you to take a part of it, live on it, while leaving the rest to generate more for the next year… and the year after that and so on.

It is basically leaving on free money (that you do not have to work for anymore) and actually work on what you really want to do. Sounds nice, doesn’t it? Despite what people might think, there is no easy way to become rich, except if you are already coming from money. But most likely, if you are reading this then you are not. There is no quick and easy scheme for building wealth and becoming financially free. It’s not only about smart investing, but first and foremost: being financially responsible. Here are 5 steps to get you on the way to financial freedom.

Define your Financial Freedom

If you could have all the money in the world, and your current day job would not matter, what would you do?

• Change your career for something you’ve always wanted to do, but might not pay as well;
• Travel all around the world;
• Giving some away to help those in need;
• Retiring at 36?

Retirement is not an age, it is a number. Financial freedom is different for everyone. By realistically setting out your own goal, you are able to measure how much you need to work on your end to reach it. What are your expenses per month or year + a little extra? That is your number you need to generate by either investing or passing income.

Manage your money

An entrepreneur does not start a business without a plan. Same goes with your personal finance. By managing your money you will:

• Decrease your spending by cutting the fat out of your monthly expenses;
• Set a monthly budget, and determine how much you can keep on investing;
• Reimburse your debts on time, without incurring late fees, which will end up to be more money in your pocket, and more to invest.

For most of us, it’s not the fun part. But now there are lots of free apps that can keep track of all the credit cards, loans and your assets investments.

With apps like Mint or Personal Capital, you can track all your cash accounts, credit cards, investments, and set a budget while seeing where you are really for your goal.

Get rid of your debts first

When first discovering all the ways we can now invest without being a big shot, it is easy to get pumped and start downloading an app like WeBull or M1 Finance. But what if I would tell you you will make more money by reimbursing your debts first.

That’s because there is a basic important concept behind. The interest rate you have on your credit card, or loan (the interest you owe the bank), will always be greater than the annual stock return (8% right now), supposing there is no recession. So the fastest you reimburse your credit card or loan, the more you are making dollars work for you. This is a true step one. Read on how to becoming debt-free here.

That means on the long term, you will have more money in your pocket to invest. That, and also this will up your credit score quite a bit, which can be interesting should you be interested in getting a loan to buy a house ( best interest rate are given to people having credit score 750 and above).

Live below your mean

Most people reinvest about 15% over their income. By doing so, when they retire, they have enough return on their investment to cover their monthly expenses without having to work. Forget about social security which is already not nearly enough today, but will have most likely changed y the age we all retire. There will be simply not enough people in the younger generation to pay for us.

This doesn’t mean you need to eat pasta until you retire. But by living frugally and below your mean (the more the better), instead of investing 15%, you can invest 50% and taking a huge short cut to that point where you pass the point of your investment generating more than your expenses If you manage to this for ten years, then it is not impossible for you to be able to be financially free at that point.

Whether it is drinking your daily coffee at home instead of buying Starbucks, cutting down on eating out, buying this cool shirt you saw, it all comes down to being realistic with what you really need, or falling into the consumerism pit. This is why it is so important to set a monthly budget, reimburse your debts, invest consistently and….

Create side-hustles

Average salary when you get out of college is $50,000/year. But the truth is the yearly expenses for a single person averages $36,000. This means there is not much left of your $50k once you take off taxes, to invest. The solution: side-hustles. By having one or two side-hustles, you can raise your income, have more to invest, and in the end reach financial freedom faster.

Pick something you are talented at and monetize it:

• You speak a foreign language or play a musical instrument? Teach it!
• You are a great thrift store shopper/designer? Open an Etsy store!
• You are good at web design? Pick up a few websites on the side to design off Craiglist or Fiverr.
• Do you have a car? Pick up a few shifts on Uber/Lyft on your own schedule.
• You are good at writing? Take a subject you like and do a blog with affiliate marketing.
• You know how to take good pictures? Sign up as a contributor on Shutterstock and earn money each time one of your picture is licensed.

Today with the internet, side hustles can be fun, you can be your own boss, and if it works out well you might even be able to quit your day job to focus on it full-time.

Check our list of the best side hustles here.

Invest in yourself

Sometimes, the best long-term investment you can make is in yourself. Whether it is a book to learn a new skill or give you a different perspective, or a course. Your own personal growth can beat any potential investment. In fact, by reading this blog, you just picked up some valuable information, whether you start investing today or not! It is not because you decide to embark on this investing lifestyle, and living frugally that you need to be considered stingy. Anything that can make you grow personally is also an investment. With a better view of the world you are living in, you end up being a better investor, and a better person.

Originally published on Medium.