How to Achieve Financial Freedom
Everyone’s financial situation is different based on their income, social positioning, individual goals and needs, lifestyle demands, etc. What concerns one person (overwhelming credit card debt, for example) may be completely different to someone else’s concerns (saving for retirement or the kid’s college education, for example).
No matter the cause, over 70% of people experience physical or psychological symptoms caused by stress. Americans who experience a high level of financial stress are distinctly more likely to engage in unproductive or even self-destructive activities.
Financial freedom is something that most of us strive toward, but what does it actually mean? Put simply, it would be a situation where money is not something that occupies your time, worrying about how to pay for obligations and how to achieve finance related goals.
Here are some ways to achieve that:
1. Take a Good Look at Your Current Situation
Ignoring your financial problems is no way to overcome the problem. In fact, it’ll make it worse. The best way to overcome it, is to face up to it. You’ll never climb a mountain if you pretend it doesn’t exist.
Take a good look at your financial situation as it is today. How much do you owe? How much do you earn? What are your spending habits? Are you saving for the future? How can you take that first step?
2. Plan for the Future
Without a clear idea of what you are working toward, it’s highly unlikely that you’ll achieve it. Sheer luck might get you there, but it’s highly unlikely. Unless you have specifically stated goals and a plan to go step by step moving toward them, your goals will probably never be more than ideas.
As an example, let’s assume that retirement is the thing that tops the list of goals. How much do you need? Realistically, what will you need to live comfortably in your retirement? Come up with a number and a date by which you want to have saved that exact amount.
This gives you a goal from which you can work backwards in setting up minor goals that make up that major goal. It also gives you a timeline to work with.
3. One Day at a Time
Now that you have your goals clearly stated and a plan to get there, put it into action — everyday. Do something that moves you toward that goal. And before you know it, you will have made major strides in the direction of financial freedom.
IMPORTANT DISCLOSURES
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law.
Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
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David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC