Financial freedom is the power to do what you will with your life without being forever bound by lack of money and over burdened by debt. This worthwhile goal can be achieved by anyone through careful planning and persistence. Just follow these steps:
Pay yourself first,
Control your spending,
Get free of debt,
Build a contingency fund,
Become an informed investor,
Give
Achieving financial freedom is a gradual process that will happen as you implement all these simple steps in your life.
Pay yourself first
Every paycheck, keep some of your money for yourself and keep it. It takes money to make money, so goes the old saying. To achieve financial freedom, you'll need some seed money that can grow into a substantial nest egg.
Take a percentage or a fixed amount from each paycheck and add it to your seed money, at least 10%, if possible. This is your investment money. Do not use it for anything else. Every paycheck be sure to pay yourself first. With time and persistence you'll soon have the funds to start making profitable investments. You'll be a lender and not a borrower. Reinvest all profits and dividends to maximize the growth of your nest egg.
Control your spending
Make sure that your spending is less than your earnings. When you find yourself in a hole, the first thing to do is STOP DIGGING. You may have to create and follow a budget.
Creating a budget is easy; following it may be hard. Start our by tracking your current spending habits. Visit www.financesoftware.net for software that will help you. Summarize your spending into general categories such as Food, Clothing, Entertainment, etc. Then you can decide which categories you can cut and by how much. Continue to track your spending and do your best to stay within the limits you set for yourself.
Get free of debt
Debt is bad, "the borrower is the slave of the lender", and none of us wants to be a slave. There are some debts that may be helpful, such as business debts to increase profits, home mortgages, and car loans. Avoid any other borrowing, even pay cash for your car if possible.
Increase the size of the payments you're making. Pick the creditor who charges the highest interest and increase that payment by as much as you can. When that creditor is paid off, take the payment amount and apply it to the next creditor. Continue this process until all are paid off. Destroy and close all or most of your credit card accounts.
Build a contingency fund
Life is full of unexpected surprises; the car breaks down, the furnace fails, we lose our job, etc.. To prevent these occasional events from derailing your financial plans, you need funds just for emergencies. This will help you avoid borrowing or dipping into your seed money.
Every paycheck, take a percentage or a fixed amount of money and put it into your contingency fund. As the money in this fund grows, you will have the peace of mind that comes from being better prepared for life's little surprises. For life's big surprises, buy insurance.
Become an informed investor
In this day and age, there are endless opportunities for investments that can make or lose you money. In order to make money and not lose money, you'll need to start educating yourself.
As a start, here are some concepts it will be good for you to know. RETURN is how much profit you're likely to make on a given investment, usually expressed as a percentage or a range of percentages. RISK is the possibility of something bad happening, like losing money. A SCAM is a false investment opportunity presented by lying thieves trying to steal your money. DIVERSIFICATION is the strategy of not having all your eggs in one basket to spread and minimize risk. An INVESTMENT STRATEGY is a long term approach to making money. Visit www.financesoftware.net for more investment ideas and related software.
Give
Begin to give away some of your money. "For whatsoever a man sows, that shall he also reap." If you are religious, give to your religion. If you are not, then give to the poor, or to "save the earth", or whatever noble cause appeals to you.
Not only does giving help free you from the mental and emotional grip of money, God Himself will generously respond to more than repay what you have freely and joyfully given away.
Conclusion
You can make it happen. Establish your strategy and stick to it. Implement all these steps in your life and your financial freedom will soon come:
Pay yourself first,
Control your spending,
Get free of debt,
Build a contingency fund,
Become an informed investor,
Give
Now, you're on your way.
Copyright ? 2005 Richard Pullman
Richard Pullman is the Webmaster for http://www.financesoftware.net and has a bachelor's degree in finance and economics.
You have permission to publish this article either electronically or in print, free of charge, as long as the author bylines are included. A courtesy copy of your publication would be appreciated. Please email to http://www.financesoftware.net
non-toxic cleaning company Winnetka ..Have you seen a picture of the Parthenon in Athens,... Read More
How many people search Google, Yahoo and MSN each day... Read More
No one has complete control over their thoughts. But with... Read More
Compounding: The Ninth Wonder of the WorldBy Nicola Cairncross Compounding... Read More
For most of us, the idea of retiring simply on... Read More
Why is it that the older and richer people become,... Read More
In his best selling book, "Rich Dad, Poor Dad, Robert... Read More
There are many forms of investing online. While I can... Read More
Most accountants, financial planners and wealth-building experts agree that there... Read More
You know about compounding right? You understand what pyramiding your... Read More
Many people assume that the offshore world is accessible only... Read More
"Any fool can rich, the wise get wealthy." Chris WidenerGetting... Read More
The inability to come up with the necessary cash when... Read More
The four main steps in building a wealth cycle foundation... Read More
"If you know how to spend less than you get,... Read More
You have $100 in your bank account, your rent is... Read More
Steve Martin once delivered an opening monologue for Saturday Night... Read More
Okay. So money doesn't really grow on trees. Unless you... Read More
I counsel a LOT of people about money. I see... Read More
What does becoming rich mean to you? Is it early... Read More
Money can be your servant or it can be your... Read More
There are many of us who are working on our... Read More
Everyone wants to be wealthy. Only a few actually achieve... Read More
Do you like so many others feel, that even if... Read More
It's no secret that the market goes UP...the market, goes... Read More
experienced cleaning professionals Glencoe ..No one has complete control over their thoughts. But with... Read More
Why not run a lucrative paper business? Paper businesses do... Read More
No matter how tight things are financially for you; no... Read More
A residual income is one that comes in no matter... Read More
Key 1 Pay your self firstkey 2 Saving is not... Read More
There is perhaps no more important decision than to take... Read More
In most societies, we are raised to believe in the... Read More
SCENE 1: Pharaoh has just woken up from a very... Read More
We will start the Financial Fitness System with the assumption... Read More
This 4,000 acre sale (now a marina and resort town... Read More
Let me ask you a very simple question. Do you... Read More
Wealth - an abundance of values. Each of us determines... Read More
You may think you have to be an entrepreneur to... Read More
"Money Doesn't Grow On Trees."Some of us even believe it.... Read More
I have given many prosperity lectures over the years and,... Read More
Although there are advantages to selling other people`s products and... Read More
While you need to have a lot of positive-thought and... Read More
Have you any idea how many people search Google every... Read More
Every day you work is one day closer to your... Read More
When Building Wealth by Russ Whitney was released a few... Read More
You have $100 in your bank account, your rent is... Read More
AS THE MARKET FLIES HIGHER, GOOD BUYS ARE BECOMING HARDER... Read More
An ellipsis to your success is hidden in the word... Read More
Offshore strategies may or may not be right for you.... Read More
Top Investment PerformanceThroughout history, many coin collections have produced substantial... Read More
Wealth Building |