Step by Step

How to achieve financial freedom

The term “financial freedom” is rather vague, but it’s a goal worth attaining. No matter what the phrase means to you — from being debt-free to paying off a mortgage — here are some ways to get there.

Set Your Goal

The first step toward gaining financial freedom is to determine what that means to you. Once you figure out your ultimate goal, you can then create and implement a plan to achieve it.

Track It

Make sure you are setting and sticking to a budget and also marking the benchmarks that you can celebrate along the way to your ultimate goal. You will have an incredibly hard time achieving financial freedom without tracking your money.

Cut Back

Once you are sticking to a solid budget, refine it. There’s a good chance you can trim your expenses, and doing so will free up funds that will push you toward that goal.

Be Ready for Obstacles

Recognize that there will be obstacles on your journey to financial freedom. How do you deal with them? By having your emergency fund well-stocked. It should have enough to cover three-to-six months’ worth of expenses.

Stay Invested

If your employer has a 401(k) — and better yet, matches contributions — stick with it. If you don’t have access to a 401(k), open a Roth or traditional IRA. Your money will grow faster when it’s invested.

Pay Down Debt

It’s hard to achieve financial freedom with debt, so make a plan to tackle it. Start with your highest interest debt first, then move on down the line.

Get Your Score Up

As US News reports, your credit score plays a huge role in financial freedom. Be sure to closely monitor your credit report and do what you can to keep your score high. The higher your score, the easier it will be to achieve your goal.

Chris O'Shea

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