If you’re like me, you may feel as though this summer is whizzing by with just over a month remaining. Wow, how time flies! Now is the perfect time to pause and start thinking about ways to create financial freedom. Below are 10 habits to help you on your journey to financial independence.
- Set Life Goals
What does financial freedom mean to you? Get specific about dollar amounts and dates. No matter the size of the goal or type (financial, lifestyle, etc.) design a blueprint to achieve these goals. The more specific you are, the more likely you are to achieve them. For example, I will save $200 per month for the next 12 months to pay for my trip to Paris in September 2023. - Create a Monthly Budget
Detail your household expenses and financial goals. By doing so, you’ll create a routine and be less tempted to splurge. The key here is to adhere to the budget. - Pay Off Credit Card Balances
Credit card debt and high-interest loans are toxic to wealth-building. Limit your debt and monitor your credit score. - Use Automatic Savings
Be sure to pay yourself first. Sign up for automatic savings plans to create an emergency fund. Enroll in your employer’s retirement plan as this has tax advantages, includes company matching, and is a great way to save for retirement. - Begin Investing
Take advantage of systematic investing and make weekly or monthly contributions to an online brokerage account. Let’s just say, compound interest works wonders – especially over time. - Monitor Your Credit Score
Your credit score is crucial as it determines your interest rate when borrowing money. Also, it impacts your life insurance premiums, car insurance rates, and in some cases your employment prospects. Therefore, be sure to pull your credit report periodically and invest in a reputable credit monitoring service. - Take care of your material belongings
Adhere to your vehicle maintenance schedules, as well as your major appliances, and home systems. It costs far less to maintain your possessions than it does to replace them. - Maintain Your Well Being
Invest in your physical and mental health as you do your finances. Create an active lifestyle and manage stress effectively. Attend your scheduled doctor visits and address your concerns with your physicians. With the stress of balancing life and work, seek out a mental health therapist to help you be your best self. Remember, prevention is better than cure. - Hire a Financial Advisor
When you’ve accumulated a decent amount of wealth, find a financial advisor who aligns with your financial goals. Different advisors require varying minimums in liquid and or non-liquid assets. - Live Below Your Means
As with your budget, take the time to distinguish between your wants and needs. What things are a necessity as opposed to a luxury? Do you really need to purchase coffee from your favorite coffee shop 5 days a week or is it more economical to make your coffee at home? Making minor adjustments can go a long way to helping you achieve your goals.
Let’s Talk! Contact us today and let’s discuss ways we can help you become financially independent.
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