7 Tips for Financial Freedom

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Do you desire financial freedom? I DO!

While interviewing a few millionaires and people who are considered “Financially Free” and living the life of their dreams, each of them shared some tips about how to become financially free. So, here are 7 Easy Tips to Achieve Financial Freedom.

Set a SMART Goal.

Your first goal doesn’t have to be big. Your goal should be Small, Meaningful, Attainable, Reasonable & Timed, which will put you in a better financial position than you are right now. Making your goal too big or too difficult may make you feel defeated if you don’t or cannot reach it. For example, start by trying to save $500 in 6 months. Once you reach your goal, work towards the next one.

Control Spending.

Overspending is the assassin of savings and can keep you in financial bondage. By controlling your spending through a spending plan or budget will help you make better purchasing decisions. Also, do small things to avoid miscellaneous spending that takes a big chunk out of your budget. For example, avoid getting that $5 cup of coffee every morning; bring your lunch to work instead of eating out every day; look for season sales where you can get 50-75% discounts for clothes or technology; and cook dinner instead of eating out every night. You will see that you will save a heap of change over time.

Save with a passion.

You have to be passionate about your savings in order to make real substantial progress. Being half-hearted about your goals won’t get you anywhere. You maintain momentum when your saving is driven by your passion. Remember, financial freedom doesn’t come free, it comes with a price. In order to reach your goal of financial freedom for your future, you must first make small sacrifices now. Develop a monthly savings goal with an actual dollar figure and use discipline and self control to reach it.

Avoid high cost mistakes.

Major money mistakes are by far the best way to sabotage your financial future. We are all probably guilty of at least one big financial blunder in our past. In life there are always setbacks, delays, obstacles, and problems to overcome. If you can avoid high cost mistakes by staying focused on your priorities and goals, you can continue on your path with minimal or no disruption. If life throws a monkey wrench at you, remember to keep focused with positive thinking. Stay optimistic, even in the worst of times. Our attitude towards each problem, dictates our success or failure in overcoming them. Use any disruption or setback as a motivator to work harder, catapulting yourself forward.

Invest with diligence.

You don’t have to be a stock broker to know how to invest. All it takes is a little self-education and desire to do so. You can start by starting a 401k with your employer, if they offer it. If they don’t, then open a Traditional IRA (Individual Retirement Account) or Roth IRA. Start making small contributions to the retirement savings account on a consistent basis. For a 401k, you should make sure to contribute enough to get the company match, if they offer it. Most companies match contributions up to 6% of your weekly gross pay. Of course it will vary from one company to the next. Start contributing as soon and as much as possible. Starting at a young age will increase your chances of having a nice nest egg at retirement. Time and compounding will work for you.

Timing is Everything.

Bad timing in finances can be devastating. Moving ahead too quickly by making a purchase of a big ticket item before you can really afford it can be detrimental. Timing is crucial with purchasing and investing. For example, when purchasing a vehicle, go shopping in October, close to the end of the month. This is when most dealerships get their new shipment of the new year vehicles. They usually have great deals on current and past years models to make room for the upcoming year’s new models.

Create 7 Streams of Income.

Identify at least 7 ways that you can create revenue. Work on the first 2 – 3 by establishing a plan of action, seek assistance, and execute. Then work on the next 2. Streams of income could include Employment income, investments, home-based business, etc. This is powerful because if one of your streams of income is stopped or reduced, you will the others to fall back on. Helpful Hint: Be creative!!! Remember all great new businesses or ventures start with one small creative idea. Steve Jobs, the founder of Apple Computer started his business by selling his car for supplies and building his first computers in his parent’s garage.

Using these 7 easy tips will help you on your journey to financial freedom.

Comment your tips for financial freedom below.