Article
Financial Freedom
You Can Have It!
Personal
debt, managed properly, can help you buy financial assets such as a home, which
otherwise would be out of reach for most people. However, unbridled and undisciplined, credit can destroy the
greatest of personal dreams
Achieving financial freedom is a
long-term project. It takes
patience and persistence to complete. Get
started today:
1. Recognize your responsibility. No one has greater power
to control the financial destiny of your future than you do. Decide where you
want to be 10, 20 years from today. Take a serious look at your excuses and
remember that every obstacle is an opportunity.
2. Itemize your assets. Your greatest asset: YOU.
Next: your freedom of living in America, your access to an incredible amount
of free education, and groups that offer many programs and educational activities.
Finally, take inventory of your dollars.
3. Visualize your objectives. Be specific about your goals.
Once you have your financial goals you need to commit yourself to them.
4. Prioritize your spending. Write down where you spend all
your money. Beware of “little” expenditures that add up to big dollars (gourmet
coffee every day, snacks, eating out at lunchtime – even at fast-food places).
Patch those holes in your pockets. Cost-compare everything and buy for the best
value.
5. Earn more – or want less. Bring your values in line with
your beliefs, then bring your spending in line with your values. Consider taking
on part-time jobs, or expanding your education if it will increase your earning
potential.
6. Overcome your obstacles – one at a time. Don’t see your debt
problem as one huge, impossible, insurmountable problem. Break it down into a
number of small challenges and make the impossible possible. Get rid of your credit
cards, stay away from temptation (boat shows, malls, home shopping shows). Forget
about measuring up to the neighbors, relatives, or friends.
7. Make your money work for you. Pay off highest interest
debt first. Establish an emergency savings account to cover a sudden layoff
or illness. Adequate health insurance, for you and your family, is not a luxury
– it is a necessity.
8. Organize your network. You do not have to solve all your
financial problems alone. Seek the help of non-profit counseling centers, utilize
employee-sponsored savings accounts (savings are automatically deducted from
your paycheck), join investment clubs, or work with financial planners.
9. Capitalize on your experiences. Learn from your financial
mistakes. The easiest ways to make mistakes are borrowing too much for something
you don’t need just because the credit is available; borrowing from friends
without a clear understanding of the financial responsibilities; and assuming
that money left in a bank account will grow in value. Beware of lenders who
want to increase your line of credit, or offer you a home equity loan.
10. Maximize your returns. Invest money in stocks, mutual
funds, bonds, or real estate, and let your money work for you.
(Crosswalk.com)
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