Have you ever sat down and thought about your financial future? Do you have a plan in place for how you want to accomplish your financial goals and a timeline set up to make it happen?
Everyone loves the idea of financial freedom, but few in life can actually obtain it without planning for it. Financial stability requires you to work and plan for it! Why do people fail at financial goals? There are a number of reasons. It could be lack of planning, lack of will power, inability to stay focused, or they are just unable to quit living above their means.
Now here’s the good news. Even if you have fallen off the track of financial planning or you have never even started, it’s not too late to change your financial future. The key is to get started.
If your financial plan in life isn’t working, change it or if you don’t have one, get one! Life is always changing. We grow older, jobs change, income changes, family size changes, and this means our financial goals should change right along with them.
5 Steps To Financial Freedom
If your goal for this year is to get on track financially then follow these five steps below to get started.
Calculate Your Total Debt
Sit down and go through all your bills and add up all the debt that you have. Include your mortgage, school loans, medical bills, credit card bills and anything that is owed to anyone. Write that number down and take a long hard look at it. You may be surprised at how much debt you really have. But this is the first step to developing a plan to climb out of debt and obtain financial freedom.
Stop Spending On Credit.
Credit is spending money you haven’t earned yet. It’s a bad idea and gets a lot of people in financial trouble really fast. Spending on credit can be a vicious cycle that can do a lot more harm than good.
Most credit cards or personal loans have extremely high APR’s where you pay double or even triple the cost of the purchase by the time it’s paid off unless you pay in full as soon as you receive the bill. Stop using credit and start using cash. You should have an emergency fund that you can pull from to pay any unexpected expenses so you can avoid using credit cards.
Start A Savings Account
Start a savings account and have a some of your paycheck automatically deposited to it every time you get paid! This is a quick and painless way to start saving money. This can be a percentage or a set amount of your check that you have deposited directly into a savings account.
Making it automatically draft every pay period is a great way to start saving money for your future and it’s easier for you since you don’t have to remember to do on your own. You will be surprised when you see how quickly it adds up into your savings account! Even small amounts help. The important thing is to start.
Make A Budget To Help You Live Within Your Means
It’s very important to have a budget when you are trying to get out of debt. Budgeting allows you to see exactly where you are spending your money and where you need to make some adjustments. Only spend money on guaranteed income.
Do you work a job where you earn commissions or bonuses? If so remember that those extra earnings outside of your regular salary are NOT a given. Live and spend based on your base salary and not based upon bonuses and commissions that you could possibly earn.
Be Happy With What You Have
Learn to be happy with what you have. Don’t fall prey to wanting what other people have. Stick to your plan of obtaining financial freedom and don’t purchase items that you don’t need or truly want. Dave Ramsey says; “If you will live like no one else, later you can live like no one else.” Don’t live above your means.
Obtaining financial freedom is something you can do. By implementing these steps, you will find yourself closer to that goal than you thought possible. Have fun with the process and work together as family. Make the commitment and start today!