Financial freedom is one of the things people want. They want to be free from debt and secured in the present and the future. But if that’s the case why do people find it hard to save? Why do they find it hard to start? Well, here are fairly simple steps that you can start on your way towards that great road to financial freedom and success.
7 steps to financial freedom
These are just seven simple steps that you can follow towards financial freedom, always remember them when you are out:
1. There must be a desire to change as a start. Would you want to improve your finances and situation right? Then think about your present situation and how you are managing it, your attitude towards spending and money. Are you cost of living way too much ahead of you? Now think about ways on which you can improve yourself and how you handle your money and properties, it can help if you realize you have flaws that needed to be changed? Then write about it in short statements on why you want and need to change.
2. Assess your current lifestyle and situation. How is your job? Is it paying you well? How much cash do you get to spend each month? How much do you save each month? Do you have debts you need to clear up? Do you set money aside for medical emergencies or just emergencies, how about retirement, your kids funds?
Evaluate yourself honestly and don’t hold back, take your time. Do what you love.
3. Set your goals. This is one of the most important things; you must have a goal, an objective no matter what it is. You are doing all this for yourself and for the people who matter to you. Ask yourself what you want in life, not related to money. Create a wish list of the things you want in times to come, make your partner do the same thing and share them. It’s essential that you plus your partner are on the same page when it comes to managing your finances, so it’s easier to help each other out.
4. Identify your options. List some things, even people who you think can help you towards financial freedom.Note everything you can think of and then skim through it later. Find out which ones can be available to you, which ones you can use and which is reachable.
5. Select the ones in the options which you think might work for you. One method is not as effective to everyone. Think about the things which are important to you when picking it and then mark all the ideas that sound good to you. Then compare your options against the goals that you have listed. Compare that to your wish list. Do they sync? Is it possible to unite these?
6. Now you have your options, work on it. Words without actions are a fool’s doing. Now you have written your options, so start turning paper into plans and reality. What steps should you take? Put in in order of time. Start within 24 hours after you have formulated your plan so that you can start building some momentum. Include anyone, and all your resources that you think can help you with your plan. A financially responsible plan that you can also include is the 70:20:10 principle. Meaning, the 70% goes to daily living, the 20% you need to pay off debt and then the 10% goes into your savings.
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7. Time to work on your plan and then monitor the progress. If you need to write it down just for comparison later, then do so. This way you can learn to measure up and determine which works best for you. You can check those milestones later as you go on your journey. Make adjustments, repeat steps if necessary. Stay focused.
Now you have the seven steps; it’s up to you to make the first move and change your financial situation. You must be in control, do your best to make it work for you both.