Ways to Achieve Financial Freedom
Most people dream of getting their first million on their savings account early on in life. Some people make it happen sooner than the others. Wonder what’s the trick?
It is a tough world we have, where we deal with everyday chaos of earning money, paying bills, saving for our future and balancing checkbook. It’s quite tricky on how to save a few bucks for rainy day funds and investments.
So here’s a few tips to empower your spending habit and achieve financial freedom asap.
1. Be Determined.
Make this determination: Why do you go to work every day? A lot of people come up with a lot of answers-to buy a car, to pay rent, buy a house, send kids to school. All good answers, but wrong.
The real answer is this: I go to work each day so that I do not have to go to work. What that means is you have to set goals immediately so that you know exactly how much you have to work (and make money) so eventually, you do not have to go to work.
Assuming you can’t find money to save is the biggest financial mistake most people make. The truth of the matter is that almost everyone with an income can find something to save. It doesn’t have to be a dramatic amount of money, but it does require desire and discipline.
Goals are simple. What do you want? Write it down. Achieve it. [Jesse Brown on lovetoknow]
2. Pay Yourself First!
Want to spend ten minutes doing one thing for your finances that will have an absolutely MASSIVE impact on your ability to spend less, save more, and reach your goals faster?
The concept is simple: Every payday, the very first thing you do is set aside a percentage of your income in a savings account. You do this before you pay the rent, before you pay your other bills, and before you head to happy hour. You “pay yourself first”. [money under 30]
3. Pretend you didn’t get a raise.
So you were lucky enough to secure a raise! Congratulations! Now if you’re able to pretend you never received it and instead sock this additional money away especially in an investment account that compounds with time, you may surprise yourself further down the road with a substantial nest egg. I agree, not being able to celebrate a raise may not be that much fun, so use a small portion of it to reward yourself (but I’d avoid those big ticket items)! [the digerati life]
4. Pay off your ‘bad’ debt.
Set aside 10% of your monthly income to eliminate debt. Debt incurred to purchase liabilities (or non-cash-producing items) is labeled ‘bad debt’. This usually includes most of the items charged to credit cards and retail store cards. If you have problems managing credit cards, a debit card can be a practical alternative. There are also several effective systems to reduce bad debt quickly. [hidden wealth keys]
5. Establish an emergency fund.
This may be where some sacrifice is required. Establishing an emergency fund can be difficult, especially when funds are already tight, but it’s a necessity if you intend to stop your dependence on credit cards. Most experts agree that you should establish a fund that would allow you to pay for three to six month living expenses in case you were to have a medical emergency or lose your job. This may be daunting, so start out with a goal of one month, and add to it as you are able. You really need to examine your budget closely to look for opportunities to save. [care on credit]
6. Save your change.
When you get home at night, put your change in a jar. When the jar gets full, bring it to the bank. A medium-sized mason jar full of silver-colored coins will bring in about $100. Put that directly into savings. [live real now]
7. Stop Carrying Credit Cards
Sometimes the temptation to use these plastic cards is just too great — it is so convenient, isn’t it? A good way to stop yourself from using them is not to carry them around. Carry just enough cash for whatever you have planned for the day. This will force you to think about your spending habits, and prevent you from buying on impulse. If you manage to clear your credit card debt, you can reward yourself by keeping one in your wallet for emergencies. [moolanomy]
8. Reward yourself below your means
Your goal is to be frugal, not a miser. Small rewards–within your budget–are a wise way to keep fun in your life. Living beneath your means takes self-control, but the emotional and financial benefits are tremendous. An occasional treat energizes you to keep up the good work. [dumb little man]
I know it’s easy being said than done, but with a little discipline, it might get us there. Right?