Anyone Can Be Financially Free

Mickey | Financial Services,General | Friday, December 3rd, 2010

When someone says financially free what is the first thing that comes to mind? Of course everyone has a different idea about what it takes to get free but one thing is for sure, if you don’t have a handle on your money you will never get to financial freedom.

Before you can even begin to ponder the many ways you could achieve financial freedom, you first have to take stock of your current financial situation. Maybe you think you are pretty good with money but if you don’t know where every single dollar goes every month you have some work to do. If you don’t have an emergency fund, savings, and get out of debt plan, then you have even more work to do still.

The financial freedom of America might seem important in the big picture but the economy should have very little bearing on your financial freedom game sheet. If you have no idea where your money goes, the first thing you need to do is to track your expenses for at least thirty days.

Once you know where your money is going, it is time to get out the old budget worksheet. A budget is a key tool to get into a good financial situation. If you have no emergency fund you must build one. The first goal is to have one month living expenses in a savings account eventually working toward six months. After you have the one month emergency fund, start paying off your debts. Pay one off at a time starting from the smallest to the largest.

As you begin to pay off your smaller debts, start taking that extra money and paying off the next largest in the cycle, you will be amazed at how quickly you start to build momentum. Once the debts are paid off you can really start to strategize and think about investing. Finish off your six month emergency fund then invest until you reach your financial goals.

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