If you could plan and design your life on your own, how would it look like? Sounds interesting, Nah? People would choose the destinations they like the most like someone would travel all over the world or maybe someone pursue their dreams. The list is endless. Money indeed plays a big role in buying happiness. Almost everything you choose to do requires money.
‘Money isn’t everything, but not having it is’
Just like everything else to see results, you need to put in the effort and be patient. You cannot achieve anything overnight. Today, we will be sharing 10 steps that can take to achieve complete financial freedom. So, let us get started.
1. Set life goals
The very first step is to create a list of life goals. Take some time to search and identify what you want out of life. Once done with the lists, attach the timelines to them and if possible, be very realistic and accurate when doing this. Stick to what is possible and achieve it. Remember, no one knows you better than you!
2. Create a budget
It’s important to know exactly what you consume every day and how much it costs. Writing a household budget and sticking to it relentlessly will end up saving you a lot of money. That will boost up your temptation to splurge on unnecessary things. Trust me.
3. Emergency Fund
Start by saving some money as your emergency fund. The ultimate rule of an emergency fund is saving up 6 months in recurrent expenses and then stashing it somewhere. It is for the cases that unordinary happens. By this, we do not mean vacations or than expensive watch you wanted to buy for the longest time, that money should only be used for actual needs which include emergencies.
4. Plan To Pay Off Debt
About 80% of the Americans are in debt and the number is increasing at an alarming rate. Debt isn’t entirely bad but it is also useful in some ways like you can build up a good credit score by borrowing money and returning it in time. What’s wrong with debt is that people overuse it. Two rules should be followed when it comes to debt. Only borrow money for purchases that would be appreciated or to borrow money when you have the plan to pay it back on time.
You will end up saving thousands of dollars in interest if you manage to pay it faster than the repaying time creating more financial freedom. You can pay loans once you start by categorizing each loan based on the interest rate and pay off.
5. Retirement Fund
For financial freedom, you have to make short term sacrifices for long-term gain. One of the greatest sacrifices is the retirement fund. Having this fund is crucial to ensure the security of the future. By saving a little each month, you are guarantying yourselves a dignified retirement and who would not want that? Stop wasting time and take the steps today.
6. Start Investing Today
This is the only way your money can multiply. Once you have created a structure to manage your income, you can create an investing plan. However, you need to be patient as results will take time. So from where should you start? Open an online investment account which will help you to learn how to invest and create weekly and monthly deposits to this account.
7. Create Automated Savings
One of the wisest things you can do is to set up automated withdraws. Once you have outlined budget, loan repayment structure, savings model and retirement fund, you can create automated deductions monthly.
8. Watch You Credit Store
It is a determinant of so many things. You can potentially waste a lot of money on having a bad credit score. Therefore, keep an eye on your credit report regularly to ensure there are no black marks.
9. Continuous Learning
Knowledge is the key to achieve financial freedom. What you need to do is to review all the tax regulations regularly and stay up to date with financial news to identify any developments within the stock markets. Also, increase your knowledge within your career.
10. Maintenance
Take good care of everything you want. This includes your home, car, clothes, and everything. The longer they last, the less you need to replace them and you will end up saving a lot of money.
We assure you that by following these golden steps, you can make a significant change in your lifestyle and will achieve all your goals as time passes by. We wish you the best of luck for your future.
