Courage, grit and determination won America its freedom more than 200 years ago. When it comes to gaining financial freedom, you’ll need the same winning formula as well. Courage to help you identify your problems and set your goals. Grit to put your vision into action. And heaps of determination to keep you focused on your targets despite setbacks and challenges. In the spirit of the 4th of July, let’s start your journey toward financial freedom!
What is Financial Freedom?
Financial freedom can mean different things to different people. For first jobbers, it could mean having enough income to cover personal expenses without having to rely on one’s parents or anyone for financial support. As you get older, financial freedom could mean having enough resources to live the lifestyle you want, along with the ability to cover emergencies without going into debt. For those nearing retirement, financial freedom could mean having the option not to work and still have enough to enjoy the life you live debt free. However we define financial freedom, you need to embrace its 3 nonnegotiable conditions: pay off your debts, build a safety net of savings funds and grow your investments to secure your future.
5 Fundamental Steps
Like the Founding Fathers who forged our country’s path to freedom, you too would have to take specific steps to achieve financial freedom:
- Define your financial goals – Be clear and specific about what you want to achieve in terms of monetary and lifestyle goals. Ask yourself how much money and how much time would you need to attain these?
- Budget, budget, budget – Keep your finances on track by sticking to a monthly budget. Consider the 70-30 rule: 70% covers your expenses; 30% goes to your savings. Never spend more than what you earn.
- Pay your credit cards in full – Carry as little debt as possible. Charge to your credit card an amount you can pay in full come due date. Pay on time to avoid fines and surcharges. With this strategy, you achieve a two-fold financial objective: saving money and improving your credit rating. But if you’re burdened with credit card debt, you can ask help from a financial expert like Financial Rescue. What’s more, you enjoy the advantage of lowest fee guarantee. No need to pay any fees until your debt is settled.
- Start investing – No age is too young to start investing. The earlier you begin, the more time you have to grow your money exponentially. Remember: it’s not the amount of money you put into investment. But the consistency and regularity of putting money into your nest egg is what helps you grow your investment.
- Generate extra income – Go beyond your 9 to 5 job. Explore other ways to earn. The digital space offers plenty of possibilities that lets you juggle your day job with a side hustle or two (or three!)
Turn these steps into your lifestyle. And before you know it, you’ll be declaring financial freedom; living in the land of the free – free from debt, free from worry, free to live the life you truly desire!