Last Money Monday I shared with you the 10 Steps to Financial Freedom – Part 1. In that post I provided the first 5 steps to get you started on your way to financial freedom. If you haven’t read that post, please check it out now.
Today I will wrap up this topic with the last 5 steps to move you out of that office or day job into a life where you are financially free and living off the fruits of your labor. Let’s get started…
6. Start Investing Today
Many people don’t want to get started because they see investing as risky. Let me say this…life is risky. Everything we do is risky. But we reduce that risk by learning. And when it comes to investing, you don’t have to be a financial guru to implement a sound investing strategy. One highly recommended way to invest is to invest in index funds. These funds represent a portion of a market, allowing you to own stock in a bunch of companies, and not just one. Do your research today and start taking advantage of compound interest!!!
Read about index funds in my post: Index Funds vs. ETFs.
7. Create Automated Savings
When it comes to saving money, the best approach is to put it on auto-pilot and save the money before you even see it. Many employers will allow you to send money from your paycheck to different bank accounts as a direct deposit. Set up your savings to go to a special account and let it sit there.
Learn more about automated savings in my post: Pay Yourself First: Savings Bucket.
8. Watch Your Credit Score
If you want to know how you’re doing, keep an eye on your credit score. It’s pretty easy to see your credit score. Sites like Mint.com will show you your credit score, in addition to most credit card companies, and the credit score companies themselves. Your credit score affects your interest rates, life insurance premiums, and car insurance. It’s important to have the best score possible if you want the best rates. And the best rates save you the most money.
Learn more about the elements of a credit score in my post: 5 Elements of Credit.
9. Continuous Learning
“Learning is a process, not a destination.” I’ve lived by that quote ever since college. We have to be constantly learning. And this is incredibly important when it comes to money. If you want to be good with money, you have to increase your Financial IQ. Read books about money management and how to make money. Search for answers to things you don’t understand. If you want things to get better, you have to get smarter!!!
Read more about Financial IQ in my post: 90% Of Money Problems.
One sure way of moving you toward financial freedom is to spend less money. And one overlooked way of spending less money is to take care of everything you own. Change the oil in your car and lawn mower regularly. Don’t be too hard on that piece of equipment if you want it to last. The longer things last, the less frequent you have to replace them. This will definitely help you save money.
And let’s not overlook the one area of maintenance that MUST be managed…your health. It’s expensive being unhealthy and sick all the time. It’s expensive smoking cigarettes, drinking all the time, and spending money on things that hurt rather than help us. Stay fit, stay healthy, and keep more money in your pocket.
If you want to be healthier, check out my post: The Three Secrets Of How I Stay Fit And Healthy.
You have within you everything you need to become financially free. The question is are you going to get started? Are you going to discipline yourself to take these 10 steps and work toward financial freedom daily? It’s not too hard. You’re plenty smart enough to make it happen. You just need to get started. Good luck!!!
This post was inspired by Practical Wisdom’s YouTube video: 10 Steps To Financial Freedom – How To Be Good With Money
***As I have mentioned many times…I am NOT a financial advisor. The information here is provided for some general financial education and for entertainment purposes. Follow up with a certified financial advisor to learn more and receive financial guidance.