Achieving financial freedom is a goal for many people.
Financial freedom generally means having enough savings, investments and cash on hand to afford the lifestyle you want and a growing nest egg that will allow you to retire.
You may fail to reach that goal because of increasing debt, financial emergencies, profligate spending and other issues that thwart you from reaching your goals.
It happens to everyone, but these twelve habits can put you on the right path.
1. Set Life Goals
A general desire for “financial freedom” is too vague of a goal.
What does it mean to you?
Write down how much you should have in your bank account, what the lifestyle entails and at what age this should be achieved.
The more specific your goals, the higher the likelihood of achieving them.
Then, count backwards to the current age and establish financial mileposts at regular intervals.
Write it all down neatly, and put the goal sheet at the very beginning of your financial binder.
2. Make a Budget
Making a monthly household budget, and sticking to it, is the best way to guarantee all bills are paid and savings are on track.
It is also a monthly routine that reinforces your goals and bolsters resolve against the temptation to splurge.
3. Pay Off Credit Cards in Full
Credit cards and similar high-interest consumer loans are toxic to wealth-building.
Make it a point to pay off the full balance each month.
Loans and mortgages typically have much lower interest rates, making them less of an emergency to pay off.
4. Create Automatic Savings
Pay yourself first!
Ideally, the money should be pulled the same day you receive your paycheck so it never even touches your hands, avoiding temptation entirely.
5. Start Investing Now
There is no better or tried and true way to grow your money than through investing.
The magic of compound interest will help your money grow exponentially over time, but you need a lot of time to achieve meaningful growth.
Many consumers are hesitant to negotiate for goods and services, worrying it makes them seem cheap.
Overcome this handicap and you could save thousands each year.
7. Proper Maintenance
Taking good care of property makes everything from cars to shoes and clothes last longer.
Since the cost of maintenance is a fraction of the cost of replacement, it is an investment not to be missed.
8. Live Below Your Means
Mastering a frugal lifestyle by having a mindset of living life to the fullest with less is not so hard.
In fact, many wealthy individuals developed a habit of living below their means before rising to affluence.
Making small adjustments by distinguishing between things you need rather than things you want is a financially helpful and healthy habit to put into practice.
9. Get a Financial Advisor
Once you’ve gotten to a point where you are able to discern if you’ve amassed a decent amount of wealth, be it liquid investments, or assets that are tangible but aren’t as readily available to convert to cash, getting a financial advisor to educate and help you make decisions is highly suggested.
10. Take Care of Your Health
The principle of proper maintenance also applies to the body.
Ailments make insurance premiums skyrocket, and poor health may force earlier retirement with lower monthly income.
These 10 habits won’t solve all your money problems, but they will help you develop helpful habits that can get you on the path to financial freedom – whatever that means for you!