Finding financial freedom is an achievement that many people look at as a major hurdle. However, there are many tips available to live a life without financial stress. First off, it is important to think positively about money. Money should be seen as an opportunity to open new doors for you and not as something that will fail to give you long-term satisfaction. When thinking about your money, you should rewrite your financial goals on a regular basis; keeping these aspirations fresh in your mind will keep you more motivated to achieve them. Here are some more steps that will help you achieve financial freedom.
An emergency fund is very important t. Unfortunately, almost 70% of Americans do not have $1,000 saved in the bank for urgent matters. There are many situations that can arise where you would need to tap into these funds. These events could be fixing the furnace or AC, your car breaking down, or your physical health being compromised. There are so many unplanned emergencies you must account for, so it is critical to have some money in the bank readily available when these emergencies arise.
Some of these debts include credit card loans, car loans, and student loans. Debt is never fun and no one enjoys having to owe money. Credit card debt can also be the worst as it is something that can accumulate over time if not handled accordingly. If you are looking to grow your wealth and achieve financial freedom, paying 20% in interest every month will only derail your plans.
Once you have built your emergency fund and have eliminated your debt, your next step will be to start saving. The best way to start is by taking out 10% of your income to save for the future. This money can be used towards investment and savings accounts.
If you are looking to achieve financial freedom through investing, you will want to do your due diligence in learning more about different fees, downfalls, and traps in your chosen market. For example, spending even 2% on a financial advisor for over 30 years could amount to hundreds of thousands of dollars lost.
Consistency is going to be key to your financial freedom. It’s not enough to just save $5,000 for one year. However, saving $5,000 a year for 30 years, while investing, can bring returns of 5-7% a year can grow to hundreds of thousands of dollars.