We all have a dream. We dream of a day when we no longer live paycheck to paycheck. We dream of a day when we can pay for emergencies without stress. And we dream of obtaining financial freedom.
We’re all on a journey towards financial freedom. Yet, we all have our own vision of what financial freedom looks like to us. For some, it might be the ability to pay for emergencies without wondering where that money is going to come from. For others, it might be the opportunity to travel across the world once a year without breaking the bank. And for others, it might be the desire to help people around them financially without a single thought to their own financial condition.
You have the power to decide what your dreams are. And you also have the power to ensure those dreams come true. You can achieve financial freedom by following these simple steps.
1. Manage Your Finances
Rome wasn’t built in a day. And you likely won’t win the lottery tomorrow. So, if you want to build a solid financial structure, you’ll need to take it one day at a time.
Create a budget and discover where your money is going each month. When you actually sit down and look at the numbers, you might be surprised to find numerous ways to save money.
The key to financial freedom is not the amount on your paycheck each month. If you can learn to spend less than what you earn, you’ll be well on your way towards financial freedom.
2. Clean Up The Mess
Once you create a budget and get a good, hard look at your finances, you might find a jumbled mess. You may ask yourself if you really spent that much on eating out last month. And you may even find that you’re spending far more than you earn each month.
Let’s take a step back and evaluate the situation.
Are there any places where you could improve on your spending? Could you put that money towards paying off a credit card or student loan? Look for ways to make your money work for you, instead of the other way around.
Make it a game to see how fast you can pay off some of your debts. You’ll be surprised at how wonderful and rejuvenating it feels to pay off a credit card and relieve yourself of that heavy debt.
3. Create An Emergency Fund
If your car broke down tomorrow, would you have the funds available to fix the car? Do you have any money saved for a rainy day? Part of your financial journey is the ability to take on life’s bumps and bruises without any hiccups. Therefore, it’s time to start investing in your future. Put aside some money each month to help you build a solid emergency fund.
If the A/C unit breaks down in a few months or you lose your job next year, you’ll want to have enough money put away so that you’re not scrambling to come up with the finances. You should also put money towards your 401k and Roth IRA to invest in your retirement.
4. Keep Going
The most important thing you need to remember on your journey to financial freedom, is that you can do this. You’ve got this! Yes, it may be hard. Yes, you may want to pull your teeth out at times. But, each step, whether big or small, is a step closer to financial freedom. Don’t give up on yourself or your dreams. Keep going!
Americans fought hard for their freedom in 1776. They sacrificed so much for their independence. And, in the end, they knew it was worth it.
You may have to fight hard and sacrifice a lot along your journey to financial freedom. But, you will know that it is worth it in the end.