Financial Freedom
What does financial freedom mean to you?
If you ask a room full of individuals to define financial freedom, you'll probably get a dozen different responses. There are various ways that you can feel financially free. What exactly does this mean to you? Before you respond, consider your goals. Once you achieve financial freedom you will be able to not only afford but also meet your basic needs with ease. You don't have to be wealthy to be considered financially free!
For some, financial freedom means renting an apartment while being debt free, while for others, it means being able to purchase or build their own home. Although your idea of financial freedom may differ from someone else's, we all try to achieve it. Unfortunately, far too many people fail. They are burdened by mounting debt, financial emergencies, overspending, and other obstacles that prevent them from achieving this goal. Then there are unexpected occurrences, such as natural disasters or pandemics which throw plans into shambles.
Our income, debt, savings, spending habits, and values all play a role in achieving our financial freedom.
Here are 4 ways to build your own path to financial freedom.
- Set life goals.
Ensure that the goals you have set are SMART. Your goals should be specific, measurable, attainable and you should set a time frame as to when you would like to achieve these goals. Make a list of how much money you should have in your bank account, the lifestyle you want to live, and when you want to attain your financial goals. The more explicit your goals are, the more likely you are to achieve them.
- Establish a budget
The first step in the saving process is to create a budget. It aids you in identifying cost-cutting opportunities. Creating and sticking to a monthly budget is the best way to ensure that all your bills are paid, as well as helping you keep track of your spending. A budget allows you to keep track of how much you spend and where that money is spent.
- Put bills, savings and investing on autopilot
When you use autopay to pay bills and transfer money to your savings keeping track of your money becomes easier. While critical activities are handled, you may focus on your family, friends, business, and leisure. Furthermore, depositing money to your savings account automatically, usually on or shortly after payday, will help you regain control of your finances.
4. Get help
Budgeting and debt repayment from start is difficult, and many of us did not learn how to do it in school or from our parents. As a result, it's critical that we seek assistance, whether from a financial advisor or a loan officer.
