Tips on gaining financial freedom

Toward a debt-free life — Steve Sorensen

For some, financial freedom equates to early retirement. For others, it can mean having a debt-free life, not having to work a 9-5 job anymore, or having money set aside for the kids’ college tuition. But no matter how one defines the term, the sad fact is many think that reaching financial freedom is a pipe dream. But provided one follow the tips below, they should find that it isn’t impossible at all.

Managing finances and more — Steve Sorensen

Firstly, get a grip on your budget. While this sounds obvious, many folks still go about managing finances with no clear direction. Remember that the budget is the map from one point to another; carefully plot what money comes and goes out per month. Steve Sorensen.

Sorting out needs and wants– Steve Sorensen

The second advice is to make a clear distinction between needs and wants. This may be quite difficult and challenging, but must be done, nonetheless. A person must just keep in mind that they should have most of what they truly need: food, shelter, clothing, access to education and healthcare. So, develop the mindset that most of the basic needs are covered; the rest are but wants. Steve Sorensen.

Lastly, create an emergency fund. It can be incredibly daunting to face debt, especially when those credit-card and high-interests loans get out of hand. If one doesn’t have money put aside, debt essentially becomes an endless, vicious cycle as you’ll never know when the next big emergency spending will occur. It’s all about making headway. A good analogy is to look at one’s emergency savings as a bucket they can use to bail them out when the tide rushes in. Steve Sorensen.

 

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