Top 7 Tips for Financial Freedom
By Arick Kostyra
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There are many who desire financial freedom, but they lack the necessary tools and commitment to achieve it. If financial freedom is your goal you must start positioning yourself for success now. In life we must take 100% responsibility for our failures, successes, and the overall quality of life we live. Donít wait for others to fix or help what financial problems we create and control. By following these important tips you can start positioning yourself for a better future, and get you well on your way to achieving your dreams.
- Set a goal. Your first goal doesnít have to be huge, but it should be meaningful enough to put you in a better financial position than where you currently are. Find something that you believe will give you freedom, enjoyment, or pride of accomplishment.
- Maintain control on spending. Thereís nothing that will derail your plans for financial freedom more than overspending. One way to control your spending is to look at your projected earnings month by month and decide what needs to be bought and what can wait. A lot of financial advisers would agree on a budget to help keep things under control. This is fine, but once you have a feel of your earnings vs. expenses you must develop a mental awareness of your spending boundaries. Start by cutting out those things that you really donít need. Do you really need that $4.50 Starbuckís mocha in the morning? Start brown bagging your lunches. Only buy cloths at end of the season sales where 50-75% discounts are to be found. Start cutting out those little luxuries and youíll really start to see the cash pile up in your savings account. Always live beneath your means.
- 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 wonít get you anywhere. You must maintain momentum, driven by your passion. Remember, financial freedom doesnít come free, it comes with a price. In order to reach your goal of financial freedom for your future, you must first make sacrifices now. Develop a monthly savings goal with an actual dollar figure and use disciplined self control to reach it.
- Avoid high cost mistakes. This is 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 good priorities and goals, you can continue on your path without 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 donít 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 opening a 401k with your employer if they offer it. If they donít, then open a Traditional IRA (Individual Retirement Account) or Roth IRA. Start making small contributions to the account on a weekly 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 can work for you.
- Time your financial moves wisely. Bad timing in your finances can be devastating. You can move ahead too quickly making a purchase of a big ticket item before you can really afford it. If youíre in the market to purchase a home make sure you have a 20% down payment to avoid private mortgage insurance. Try to pay off your car, credit cards, and high interest debt before making a big purchase like a home. If you must purchase a car, put enough money down to get your payment as low as possible. With a low payment, you can focus on paying down high interest debt. Try purchasing a used car where someone else took the initial hit of depreciation.
- Get creative in your quest. Creative minds are always one step ahead of the curve. If you can find a way to earn more, increasing your productivity, then by all means do so. Many people enjoy financial freedom today because of their creativity. Creating a business or product that caters to the masses is the key. Remember all great businesses 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 parentís garage.
Arick is a Real Estate Agent and services the Greenville South Carolina Real Estate Market, including the Greenville Condos Market. and invests in not just the stock market but also his local Greater Greenville Real Estate Market.
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Article Submitted On: January 02, 2008