With the right tools, anyone can become financially free. It's not a matter of luck or birthright—it's about putting in the time and effort to build a system that works for your life. Here are ten steps that will help you get there:
Track your spending.
Tracking your spending can be a daunting task, but it's also one of the most important steps towards financial freedom. Tracking your spending helps you keep on top of where all of your money is going and identify areas in which you feel like you're overspending.
For many people, this process starts with a pen and paper — either in a notebook or on sticky notes around the house — but there are plenty of other options:
If you're looking for an app that's both easy to use and aesthetically pleasing, consider Simple or Rize (both iOS only). These apps will help you categorize each purchase so it's easier to see how much money is actually going into different categories throughout the month. They also allow users to set budgets based on individual categories (like "retail" or "food") as well as overall budgets that determine how much money users have left after paying all their bills at the end of every month. Users can even add friends' names so they know exactly who owes them money!
If Google Sheets seems too complex for what you need from an app, check out Mint Bills (Android only). It allows users to track bills and income from multiple accounts over time, which could come in handy if someone wants more detailed information about their finances than just an overview report once per month!
Have a financial goals session.
Once you've determined what your goals are and which ones are most important to you, it's time to meet with a financial planner. A good financial planner will help you set realistic goals and create plans for how to achieve them.
To find a financial planner that is right for you:
Ask friends or family members who they go to when they need help with their money. This is the best way of finding a good fit because someone else in your life has had success using them, which means they must be doing something right!
Check out Google (or whatever search engine applies) for "financial planners near me." Once you have found some potential candidates, look at their online profiles before making an appointment with any of them. You should have clear pricing information available before meeting so that there's no surprises when it comes time to pay up. Keep in mind that not all advisors will work within your budget; if possible though, choose one whose services are affordable enough so that they won’t put too much stress on your finances while still providing value added benefits such as tax planning tips throughout the year!
Listen to your heart, not your ego.
Listen to your heart, not your ego.
When it comes to making decisions, we often let our egos make the call instead of listening to our hearts. The ego is the part of you that wants to be right and prove yourself right in any situation—but it doesn’t necessarily want what will make you happiest or bring about the best results for everyone involved. On the other hand, when you listen to your heart, you’re listening to your intuition and trusting yourself without having an agenda or trying to control things around you. You can tell which voice is speaking through how it feels inside: Is there a sense of ease and peace? Or do feelings like anger/anxiety arise when considering something?
Work with what you have.
"Work with what you have." The first step to financial freedom is to use and make the most of what you already have.
Using your credit cards, or paying for services that are not necessary, will only get you into more debt. By working with what you already have, instead of buying things on credit or renting a new apartment when yours is perfectly fine (and can be improved), you will save thousands over time.
Create multiple streams of income.
Create multiple streams of income.
As long as you’re not earning a living, you should be trying to create additional sources of income. The more money you make, the faster you will get out of debt and into financial freedom.
Get a part-time job or start your own business. There are many ways to do this:
Sell your stuff on eBay, Craigslist or Facebook Marketplace (this is my favorite way to make some extra cash).
Sell your skills by teaching English online via websites like iTalki or VerbalPlanet. You can also tutor students in person at local businesses like Starbucks or Panera Bread (check out this list of other companies that hire teachers). If you don't want to teach English but still want to get paid for knowledge and experience, consider working as an intern for someone who's doing what they love! You'll learn from them while getting paid—and maybe even land a full-time job after graduating from college with real-world experience under your belt! See my post “How I Got My First Job After College” for more details about how I got started doing this myself :) And finally...
Invest in yourself by increasing your skillset with continuing education classes or certifications that can lead directly toward higher paychecks down the road.
Invest in others by volunteering at local non-profits; organizations like Habitat For Humanity build homes for low-income families each year which helps them achieve financial freedom quicker than they would otherwise be able--and allows others who've achieved their own dreams already take part too because there's always plenty left over each year after building all those houses.
Save for rainy days.
Save for a rainy day. Your goal should be to save enough money that you can pay your bills during periods of unemployment, illness, or injury. It's important to have a rainy day fund so that you don't have to take out loans or dip into retirement funds when times are tough.
Make a rainy day fund if necessary and add money to it over time until you have enough funds to cover at least one month of expenses (including rent/mortgage). If your job is temporary or seasonal, consider saving up enough money so that you can get through the off-season without taking out loans or dipping into retirement accounts (unless absolutely necessary).
Do not use credit cards when making purchases; pay cash instead! This keeps track of what exactly is being spent each month, which helps prevent overspending on unnecessary items such as groceries and other household items that may not need replacing every single week—or even every month! You'll also learn how much these things cost in order better plan ahead financially when shopping at stores like Walmart where prices change frequently due to high demand during busy seasons like Christmas time.'
Have an emergency fund.
Having an emergency fund is a great way to prepare for the unexpected.
It's necessary to have three months of your living expenses (rent, food, utilities, etc.) in a savings account that you can easily access. If you are saving for something specific like buying a house or going on vacation, then the amount saved should be proportionate to how far along you are in that process. For example, if you want to buy a car and still have six months before it's paid off, save up enough money so that when it's time to pay off your loan payment next month and after paying bills there is enough left over for gas money just in case something happens with the vehicle while driving it home from work or on vacation somewhere else than where your parents live because they won't let their children drive cars anymore since they don't know how much damage they can cause while driving around town!
Invest in yourself and your community.
Invest in yourself.
Invest in your community.
Make a plan and stick to it. If you don't have one, then make one now. No excuses! Don't be afraid to ask for help if you need it, but don't be afraid to fail either (more on that later). Sometimes we have to take risks if we want to succeed, but if that's not your thing then here are some other ways:
learn from the mistakes of others (the mistakes of others who've been there before).
read up on self development books or blogs; there are tons of them out there! They'll give you great insight into what might work best for someone like yourself based on their experiences with similar situations/problems as yours.
Don't be afraid of making mistakes either because everyone makes them at some point during their journey towards financial freedom - including me!! haha. I learned my lesson though which was never going against my gut instinct again because when something doesn't feel right then usually means there's something else going on behind closed doors which might not always be good news.
Pay down debt, then pay it off!
Once you’ve taken the time to calculate your debts, prioritize them in order of highest interest rate first. Once that debt is paid off, move on to the next highest interest rate and so on until all of them are gone.
Here’s an example:
Highest Interest Rate First: Your credit card debt has a balance of $5,000 and an interest rate of 17%. You have two other credit cards with balances totaling $2,500 each at 14% interest apiece plus a student loan for $10,000 with 6% fixed for ten years.
Start here by paying off your highest interest rate debt (the card). Once it’s gone, move onto the next one—in this case it would be one of your smaller debts (the student loan). Once that debt is paid off, apply what you were previously paying toward the larger amount until it too is gone!
Make a plan and stick to it.
The most important thing to do when you're trying to save money is make a plan and stick to it. If you don't have a plan, chances are that when something comes up—like an emergency or birthday gift—you'll be more likely to spend money.
It's okay if your plans change as time goes on. It's also okay if your mind changes; that happens too! But the best way to avoid spending lots of money is making a plan and sticking to it, whether or not your circumstances change. Some people like writing down their budgets and keeping track of their spending in order keep themselves accountable; other people prefer having strong mental discipline so they can keep track of their budgeting in their minds alone. Whatever works best for each individual person will be what makes them successful at saving money!
The path to financial freedom is yours to create.
The path to financial freedom is yours to create. Being financially free means more than just having a lot of money saved up in the bank account, it’s also a state of being that is achieved when you have enough money to live the way you want without being dependent on your income.
Being financially free can seem like an impossible task for many people out there, but if you follow these 10 steps and put in the hard work, it will be within reach!
The first step is learning how to make smart decisions with your money. Understanding how different investments work and choosing which ones are right for your goals will help ensure that your money is working hard for you instead of going down some black hole! The second step involves paying off high-interest debt as quickly as possible so that any extra cash flow goes towards investments rather than simply paying more interest on old debts. Third comes creating an emergency fund: having enough savings set aside so that if something unexpected happens (such as losing their job), they'll have time before needing credit cards again."
We’re at the end of our article, and we hope you’ve found it useful! We think that each of these steps is vital to achieving a healthy financial life. If you can follow them all, or even most of them, then you will be well on your way to being financially secure for the long-term. Remember: no one can tell you how to do this except for yourself. You have the power to choose what’s best for yourself and act accordingly—but only if we all take action together as well!