5 Prime Steps On The Road To Financial Freedom
Tuesday, August 21, 2018, 6:00 PM | Leave Comment
While everyone looks forward to attaining the financial freedom to live their lives the way they wish, everyone’s ultimate goal on the path to financial freedom will portray a different reality.
Who wouldn’t want to live life large, all soaked in comfort and luxury? Maybe you have some deep passion or cause that you want to follow. Maybe for you, the actual meaning of financial freedom is being able to do what you want, when you want.
No matter what the final goal of financial freedom looks like for you, there are a few vital first steps that you must follow to reach your destination.
These top 5 steps on this path are all straightforward actions that you can begin today. All you need to do is make your mind up to transform your existing life for a better future, and you will be on your way to living the life of your dreams.
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Clear Your Credit Card Debt
For a number of people, credit card debt is a lifetime commitment that they never dismiss. Unless you are keeping your monthly balance zero before any interest is due, credit cards will leave no stone unturned to wreck your finances, pushing you away from the next steps on your road to financial freedom.
There are several professional credit relief agencies out there with effective plans to offer a much more manageable interest rate on credit card debt and help you get it all paid down as quickly as possible.
The very first step on the way to financial freedom is this simple and effective. So when it comes to credit card debt, just pay it off and never allow yourself to own a balance at the month end.
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Invest At Least 10% of Your Income
Everyone is more than familiar with the fact that to grow financially, they need to invest a portion of their income. But how many take this seriously? Well, the sooner they will realize, the better off they will be. The difficult part is actually turning this into reality.
Financial advisors actually know how hard it can be to make sure that a decent amount of income stays in hand at the end of a pay period so that it can be put away for investments.
This is the reason why they all now recommend that an automatic withdrawal procedure should be followed, which will invest a portion of your income when you get paid.
This helps you avoid any struggle or stress to save a sufficient amount of money to invest. You just invest what you can actually afford automatically, and then make use of the rest for other things without feeling anxious.
In addition, take advantage of any tax-free savings programs offered to you and also maximize any employer handouts to retirement accounts.
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Always Remember to have an Emergency Fund
An emergency fund proves to be such a vital step on the road to financial freedom due to its ability to save you the funds in the long run.
The issue with emergency expenses is that they never knock at the door, they always come unexpectedly. When you are not financially prepared to meet an emergency, it ends up costing you way more than if you do have the money to save you through the hard-hitting times.
Whether it is availing emergency loans at grueling rates or missed earnings because of an injury and poor health, being nonchalant for foreseeable emergencies can cause a major deviation from the road to financial freedom.
A decent-sized emergency fund will ensure to carve a way through life’s inevitable surprises effectively and help you get yourself back on your feet as soon as possible.
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An Idea of Buying A Home Can Wait
For a myriad of people, house ownership is a rite of passage and to some level, a foremost source of pride. But this can backfire, as purchasing a new house too soon can drastically bound your plans to reach your financial destination.
The smaller the size of down payment will be on a house, the more that it will attract money in the form of interest for a longer time period. A wise choice will be to save and wait for the right time to buy your home and pay minimum interest instead.
So when is the ideal time to own a house?
The answer to this question is that wait until you have at least a 20% down payment, depending upon the cost of your home. All in all, the bigger the check of your initial down payment, the more that you will save.
Keep in mind that “haste makes waste.” -
Stretch Your Legs According to The Coverlet
This step on the path to financial freedom is the simplest yet the one that people have the hardest time with.
How’s that possible?
Well, here are some questions for you.
How many times have you thought of or even made a promise to yourself that you will not spend money on unnecessary things anymore?
How many times were you able to successfully follow that thought or keep that promise?
The answer is “The world is full of temptations”.
It can be cumbersome to try to live within your means and not waste money on non-essential items so that you have enough left over to make it an investment.
However, it is important to remember that nothing can fill the void of getting everything. No amount of buying things will make you feel better than you will once you have reached your destination of financial independence.
There is another of taking the term “living within your means”. You can think of it as buying your way into financial freedom, where the amazing sense of happiness and security surrounds you from every direction.
Final Thoughts
You may have beaten your credit card debt but you may not be able to slide your way out from your lifestyle in just a single day or even a month, but taking that very first step towards your financial stability is all that matters.
You have already wasted enough time to start yourself down the road to your edition of financial freedom, don’t waste it anymore.
Get started right now. Good Luck!
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