How Can I Achieve Financial Freedom?
Achieving financial freedom is not some fairytale that solely comes true for those who seem to strike it big. It is nothing more or less than a state of financial well-being, which CAN be achieved by you, your neighbor, or anybody with a means to make a positive and long-lasting impact on their life.
That’s what we’ve formulated our financial freedom guide upon – the building blocks and pivotal steps you can employ to achieving financial freedom. So how can you achieve financial freedom in 2021? Let’s take a look at a financial advisory approved game plan:
- Manage Money with Intent – It will continue to remain impossible to build wealth when living paycheck to paycheck. That’s why you need to be intentional with your money and budget your finances. If you can’t create a budget and follow the budget strictly, then you’ll continue to find yourself falling short of obtaining financial freedom.
- Financial Cleanup – Here is where the nitty-gritty surfaces. After you’ve established your budget parameters, your immediate goal is to save $1,000 (a short-term emergency fund). Next, you begin freeing your income power and creditworthiness by paying off debts, starting with the smallest and snowballing higher until the debt is paid in full.
- Career Assessment – You need to honestly assess whether your career aligns with the goals that you have in mind. Is there room for career advancement, do I enjoy the work, and can this job help me realistically reach my long-term financial goals? These are questions you need to answer before moving forward.
- Short-Term Savings – Now that your debts are paid in full, expand your emergency fund to cover 3 to 6 months’ worth of expenses. Max out your employment 401(k) retirement savings and begin create a savings plan for large purchases like a home.
- Long-Term Investments – General rule of thumb aims to invest 15% of your income into retirement savings. After you pay your home off, you can contribute more of your income to investment or further adding to your children’s college savings (like with the Education Savings Accounts). Before acting upon this step, you should consult a financial advisor.
The most challenging struggle of achieving financial freedom is remaining intentional and consciously in control of your finances. In essence, you no longer operate as a servant for your money, but rather your money works for you. Employing the steps shared above are tried-and-true by people from every kind of life imaginable; why not join them? It’s time to stop living paycheck to paycheck and start living the life you envision for yourself, your family, and your loved ones.