How To Become Financially Free
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How To Become Financially Free

Five steps to achieving financial freedom.

Financial freedom can sometimes seem like an impossible task. The road to debt free living consists of careful planning and strict discipline on your part. There may be times when you will feel confused and doubtful as you strive to settle all the debts that have accumulated over time. You might even start to believe that you will never know how it feels to be worry free. Just try to remember that there can be a bright future ahead. You can achieve financial freedom if you stick to your goals and refuse to give up. You will not become debt free overnight, but you can eventually have peace of mind. By following the five simple steps below, you can become financially secure and insure a worry free future for yourself and your family.

1. Bargain Shopping

When shopping for groceries or other items, consider purchasing the store brand products to save money. Use coupons for only the name brand items that you absolutely need and resist the temptation to make spur of the moment purchases. If you have a discount card for the store you are shopping at, make sure to present it to the cashier at the checkout counter. You may not save a whole lot of money on a single shopping trip, but even one penny saved is better than nothing at all.

2. Budgeting

Creating a budget is a simple matter. It is the sticking to the budget that is the hard part. To be successful, you must keep track of your budget daily so you will not overspend. Sometimes you may see something that you think you must have and be tempted to splurge a little extra money for it. When this happens, force yourself to wait for a week and then decide if the item is still important enough to buy. If not, put the money you would have spent on the item in a special savings plan, such as a family vacation fund.

3. Emergency Fund

Every payday put aside some money from your paycheck for an emergency fund. Extra cash is always handy to have in case you get laid off from your job, an appliance breaks and needs to be replaced, an automobile needs repairs or the roof starts to leak.

4. Long Term Planning

Think long term when considering your financial planning. Avoid unnecessary expenses that can put you in debt for years, such as bank loans or credit card bills. With these you will have interest to pay, which can add up to quite a huge sum. Save up the money for purchases that are less expensive than buying a house or a car by putting aside a certain amount from each paycheck. It will take you longer to make your dream purchase, but you will be rewarded for your patience by the money that you will save.

5. Savings Account

Take a small percentage from each paycheck and deposit the money into a savings account. Do not touch the money unless it is needed for an emergency. Watch as your savings account balance gradually increases each payday. This will not only make you feel more financially secure, but seeing the money grow will help to inspire you to save even more.

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Comments (4)

This is such a great and important "how to" article.

Smart and solid information for budgeting. Very well done.

Great tips to become debt free.

A great article with helpful information for us all.