5 steps to financial freedom
These 5 steps to financial freedom are actionable steps that you can take today to begin your journey towards financial freedom no matter where you currently are on the path. It is purposefully written in a concise form so that you won't feel overwhelmed with information. This guide will hopefully give you direction and allow you to start today making your goals happen!
1. Make a Budget
- Make sure to budget in a consistent payment towards debt.
- Look for ways to cut back costs or save so that you can put it straight towards your debt.
- If you get any unexpected money, put it immediately towards debt.
2. Consolidate Debt
- Combine all debt into lowest interest rate possible (shop around).
- Pay off the highest interest rate debt as quickly as possible.
- Where possible, eliminate debt even if it means a short term sacrifice (is cable tv a need?)
3. Set Goals
- Make sure that you have a definite purpose. It's a lot easier to be disciplined when you have a specific goal in mind.
- Have a time frame for when you want to complete your goal.
- Make small goals and find a way to reward yourself as you complete each goal (preferably in a way that doesn't cost money).
4. Look for ways to upgrade your career/increase income
- Basically, this is where you need to do your homework. Find out what the salary range is for your chosen field. Find out what you need to do reach the higher end. Consider whether it's time to change fields to bump your pay range.
- Research education options. Is there a way to gain a certification or degree that will greatly enhance your ability to earn money.
- Stay up to date on what is happening in your field, possible trends and opportunities for growth. We live in a world where you need to be constantly learning or you will fall behind.
5. Visualize Where You Want to Be in 5 Years
- This goes along with setting goals, but with a bigger picture in mind.
- Ask yourself what is most important? What kind of lifestyle do you want? This will help you prioritize how you spend your money and what your budget should look like
- Look at examples of people who are where you want to be. How did they get there? Can you learn anything from their journey. Where possible, ask questions! Knowledge is power.
All five steps to financial freedom are important, but I believe #5 is the most important of all when you first begin. Knowing where we plan to go really helps to get us in the proper frame of mind to do all the work and sacrificing tat is needed in the short term in order to reach our long term goals.
These five steps WILL help you to reach the financial freedom that you are longing for. if you follow them With direction and purpose it is always easier to make sacrifices and discipline ourselves to reach the long term goals that we have. You really can't put a price on the peace of mind that comes with living a debt free life! If you have any questions or need some advice, please send me a DM on my instagram account @peachtreedrive.