Money. We all need to make money to live- and there’s are nothing wrong with earning or upward your financial income but to get the real financial freedom you need to control your finances and lives. A years ago, I was overwhelmed by money’s rapacious tug on my experiences, and then I decided to change, I decided to take back control of my finances and lives. These are the five steps I made, to get financial freedom to live.
01|Written Monthly Budget
Most of us have don’t know where is our money going. We think we know, but we don’t know. On that note, the first step is getting financial freedom is Written monthly budget. Categories your expenses into three categories:
- Essentials
- Nonessentials
- Junk
writedown every expenses foods,houses,insurance,cars,clothing,phone,internet,credit cards,entertainment. Then check with your partner and other families member-even your children-everyone in your household must have a say in the written budget. Then use your essentials, Nonessentials and junk categories to prioritize and cut your expenses. The stricter you are, the sooner get financial freedom.
02| Pay Your Future Yourself
I do pay myself with two categories EMERGENCY and RETIREMENT Fund. Things can happen, so it’s so essential to create an Emergency fund other name called safety Net saving account with $5000-$10000 for emergencies. Do not touch this money unless there is a real emergence like care repairs, medical bill, job loss etc. Emergency Fund will give you confidence when life punches you in the face.
The best way to save for your retirement is to automate your saving using an online service like Betterment, which takes out the money for investing. The future won’t wait. Do it today. That could be any amount $20 a month, or 1% of your income. Your future self will thank you.
03|See Your Debt
Being in debt is feeling- a complete loss of freedom. Imagine the life you have no car payments, no credit card payment, and no student loan. It’s easy to ignore your debt, but to tackle your debt, you need to take a piece of paper and write down each of your debts, the balance, the interest rate and minimum monthly repayment. Then add it all up.
It’s Important to look at the total amount.
Then take control and schedule your savings and your payments to come out automatically each payday, before you have a chance to spend anything.
04|Minimize your life
“The Secret of happiness, you see, is not found in seeking more, but in developing the capacity to enjoy less.”-Socrates
The real fulfilment in life is come from being free. Simplifying your lifestyle means not only saving money, but it also makes you a happier person over time.
Always look for something to do rather than going shopping take a walk to the beach or park, visit a friend.
05|Help other people
One of the easiest ways toward financial freedom is appreciating what you already have. Show the gratitude for the gifts you’ve already given is to change your perspective.
To do so, contribute your most precious asset: your time. Help the homeless shelter,less-privileged children, older people with groceries or in-home care. Just do an internet search for volunteer opportunities in your area. And build your contribution muscle.
Bottom line
Although there is no magic bullet, to get out from the debt. It’s only possible to change our money habit and make better decisions with fewer resources.
