Financial Freedom – What Is It?
What exactly is financial freedom? It is different for everyone, but I believe, in a nutshell, it means we are debt free which means we can live our life how we want to live it.
Most importantly, it means we can do all the things we want to do, without a constant worry on our minds about money.
Have you ever purchased something and felt guilty for several days? Always worried that you won’t have enough money for bills or other necessities? Tortured yourself for those several days debating if you should return it?
Financial freedom means we can do things we want to do, we can buy things we want to buy, and most importantly, it means we will NOT be stressed about money 24/7!
Is Money Everything In Life?
Money isn’t everything, and we can live happy lives without having a lot of it. However, it is an essential part of our lives.
Even if you aren’t a materialistic person, you still need money even if it’s only to put a roof over your head.
In addition, do you have a hobby? Most hobbies cost money even if it’s only a little bit. Maybe it is only a start-up cost, for example, buying a bicycle to become a cyclist. You still need money for even that!
I could go on and on as to why money is necessary to have, but it is certainly not everything!
My Road To Financial Freedom.
I have a checklist in my mind for the goals I want to achieve in my journey.
Some of these things I have talked about regularly and I will continue to talk about some of them.
Above all my goal with this entire thing is to motivate myself and all of you to work towards financial freedom! That is why I started this blog and will continue this blog.
I will mention certain things numerous times throughout this blog because that keeps it fresh in my mind and certainly keeps me motivated to continue!
So, without further ado, here is my checklist of goals. These are short and long term goals in my road to financial freedom!
Save Up An Emergency Fund!
Have you read this before on my blog? Of course, because again, I feel this may be the most critical step in all of this!
Listen, I know this part is difficult for some of us. I am still working on this step myself! I do have a nice little fund going, but it isn’t as big as I would like yet. It is hard for me to save money! Therefore, I utilize Digit to do most of the saving for me.
How big of an emergency fund do you need you may ask? Well, that is different for all of us. My ultimate goal is to have a minimum of one month’s wages in my fund. However, eventually, I will save an even more significant amount.
However, this is still a work in progress because I am paying extra towards one of my credit cards and saving towards my emergency fund each month.
Create A Realistic Budget.
This is another crucial personal finance tool that I have discussed numerous times.
I believe all of us, regardless of how much money we make, have some spare money somewhere. I would say a majority of us have no idea where our money even goes each month.
I know I was in that category not too long ago.
Budgeting your money can take so much stress off of you and your family. Above all, it can and will help you reach your financial freedom goal.
I wholeheartedly believe that without a budget we cannot meet our goals!
Pay Off Your Debt For Financial Freedom!
We cannot be financially free and have debt.
This is my number one goal in addition to establishing and maintaining an emergency fund.
Firstly, How much money do we throw away each month paying interest? All of that money could be used for much more beneficial things such as saving more, vacations, etc. The sky is the limit once we stop throwing money away!
Secondly, do you even know why you are in debt? As I have said before, I used to blow money like it was the hot thing to do. Once I spent all my money, I used credit cards to spend even more money that wasn’t mine.
Discuss Your Financial Freedom Goals With Your Family.
My wife and I are on the same page and want to be financially free. However, I have read so many different articles that speak to the contrary!
Above all, if you have a significant other or family to worry about, communication is key! Being on the same page is of utmost importance.
Certainly, money is one of the leading causes of fights between couples. That can stem from not communicating regularly about money, or it could be that both of you disagree with each other.
To clarify, it doesn’t matter why you fight about money. The goal is to discuss it rationally, come to a mutual agreement about your goals, and move forward with your plan.
Understand and Build Your Credit Score.
Your credit score can affect so many different things in your life.
I often say that in America, your credit score is EVERYTHING! Let’s face it; a vast majority of us are going to have debt. Your credit score affects how much money you throw away for interest and therefore is very important.
Believe it or not, for instance, your credit score can even affect the prices you pay for home and auto insurance, it can affect your cell phone bill, and can even affect home requirements such as electricity, water, etc.
A good credit score can even help when chasing our dream of being financially free. For example, I recently opened up a new credit card and am utilizing the 15 months of interest-free for balance transfers. To some, this may seem counter-productive to have another account. However, paying 12 thousand dollars in credit card debt interest-free is saving me almost 200 dollars per month in interest!
Please read WARNING! Credit Cards Are Ruining Our Finances.
In conclusion, I think I can safely say that all of us want to have financial freedom! It can be for many reasons that we want to achieve that. We want to be debt free!
To clarify, as I said before, even if you are not a materialistic person, we all need money to live our lives.
Further, I do have a couple more small tips to think about.
Firstly, don’t do things to impress other people. I used to do this. A friend would buy a new car, and I would go right out and buy a new one to keep up. I could go on and on with examples of this. Just don’t do it!
Secondly, don’t forget about retirement! Sadly, thus far I have done just that! I have hopefully only 20 more years of working and have done NOTHING to set myself up for that!
Please learn from my mistakes. Do NOT spend money you don’t have! Start working towards financial freedom right now! Start saving for retirement as early as you can!! Above all, live life and have fun doing it!
YOUR TURN – What are some of the goals on your list in this financial freedom journey? Share them with all of us in the comment below!
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