Why Is Financial Freedom Important-let’s explore…
Many individuals are questioning their stance on- why is financial freedom important. Especially since the pandemic. They have learned from hands-on experience that you do not know when the tide of life will turn and not be in your favor.
When it comes to our finances, there are a lot of things to think about. How do we save money? Then we ask ourselves how do we make more money? How do we invest our money? And, once we’ve mastered those skills, how do we achieve financial freedom?
For many people, achieving financial freedom is the ultimate goal. But what does that mean, and why is it so important? Here’s a look at why financial freedom is so important for everyone and how you can achieve it in your own life.
Financial Freedom Can Be Viewed AsThe Following
Financial freedom is a key ingredient to living a happy and fulfilling life. It allows you to have options and control over your future, which is incredibly important. However, it does not exclude you from other facets of life things. The importance of having sufficient monies saved and invested in the face of a catastrophic situation can equate to survival.
Financial freedom can also help you make life decisions without having to worry that your grocery funds are low. It gives you total control over your money, instead of your financial situation having control over you.
If You Are Wondering How To Get Started -Here Are Key Points For Action
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- Remember that it is not the amount of money that you make, but what you save. t
- Live within your means.
- Dwell on the long-term benefits, and try to avoid the Financial Mistakes mentions in this article. Beware of These 7 Financial Mistakes.
- You and you only are in charge of this project. If you have a spouse, then it must be a united effort to make this happen.
- Being consistent is one key to saving faster.
- Forget about your friends, what they have or do not have, this is about you. You do not have to explain in detail why you can’t take that little vacation to Bermuda. It is simple to just say…it is not in my plans at the moment.
- Try not to get stressed out over not progressing fast enough, just take one week, one month at a time.
- Make it a fun game, not depressing. Count your blessings and think about how you will feel when you have 100K in the bank or in an investment account.
- In Financial Planning you should -Know who you are investing with.
- Don’t jump ship if you make a mistake, you can overcome a mistake.
Simple Steps To Financial Freedom With One Step At a Time
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- First, it is important to make a plan and put it into action. This can be a budget that will list your monthly income versus your debts. If you follow a budget, you will not come up short of funds. If you do not follow the budget and splurge…you can have a deficit.
- You must prioritize your monthly expenses. What are the essentials? Housing, Insurance, Utilities, Food, Debt-Installment loans (vehicles), Child Care, Medical. Do not forget to have a savings fund where you put a certain amount of your money there each month.
- Credit Cards – Paying off credit cards should be a priority. In fact, credit cards today per Nerdwallet for the average US household is $6,000+-. Total US CC debt is $357,04B. That should tell you something and help you decide that it is time to be free of credit card debt.
- The easiest way to pay off credit card debt is to start with your highest balance. Pay off one card at a time if you have more than one. Then go to the next in line with the same process.
- The best solution to having too many credit cards is to tear them up when you pay them off. Keep one for emergencies, and pay that one off each month. This is a solution that has worked for many individuals, even those without a lot of income coming in. You must make a commitment to yourself that this is a priority.
- Paying your obligations on time is one priority that should never be sacrificed for that splurge that is always lurking around waiting to present itself.
- You do not have to have or need the latest model vehicle. In fact, Dave Ramsey states that you should NEVER buy a brand new car unless you have a million dollars in the bank.
- Always have an emergency fund available. The financial gurus all agree that at least 3 to 6 months of expenses are needed in the emergency fund.
- Dining out is always more expensive than preparing food at home. Keep in mind that all of the new favorite cooking utilities and options for making meals ahead of time just mean planning ahead.
- If the company you work for has a 401K- put as much money there as possible. The company will match your percentage. That makes your salary higher in the long run. Read this: Free Money With a 401K Employer Plan. * note that you can also get a 401K outside of your employer. RE: The Motley Fool: If you are self-employed, you can open a retirement account as an open 401K account.
- Be conservative with purchasing everything. Make sure the products you purchase have been reviewed. Read reviews and most of the time you will learn if the products will be valuable or invaluable to you.
- Do not let yourself get addicted to anything that causes you to spend a lot of money. Even if you have it, addiction can cause long-term financial worries and instabilities.
EndNote
Why Is Financial Freedom Important –
Many Americans and others from across the globe now know more about the question of why financial freedom is important than ever before. Many individuals lost their total household income with their employers being shut down.
The above has taught us a lesson we will not forget soon, especially for those who are still working to get their finances back in order.
There is no reason to apologize for being frugal or conservative. Your pocketbook, saving account, retirement account, and financial stability depend upon your actions. It does not matter what other people think or do. To live well, one must plan well.
Financial freedom also means not having to worry if your parents need some additional financial help. It also means that giving help to someone who might be in need will bring a proud, peaceful, and rewarding feeling.
You can also read: Money and You
