4 Tips for Financial Freedom
Creating and running a business that you love, without having to worry about money is what many solopreneurs and small business owners strive for. The flexibility and financial freedom allows individuals to have options, options in regards to their time and options as to what kind of life they can create. How do you achieve financial freedom you may ask, here are our top 4 tips to freedom over finances.
Establish Financial Goals
Setting financial goals is tip number one to financial freedom. Ensure that your financial goals are realistic, specific, and measurable while also being timely and achievable. Plan out your financial goals, similar to that when you are creating a business quarterly plan. Begin by separating your personal financial goals into short term and long term time frames, followed by mapping out a plan of action in which you can set out to achieve each goal within a certain time frame. Organizing and planning the actionable steps to achieve the financial goals you set for yourself will help you build out and stay on track with your goals in mind.
Create a Monthly Budget Plan
If you’re an entrepreneur or small business owner, you may track how much monthly you are spending on business expenses and other costs related to running your business. Business tends to come first, where there tends to be a lack in individuals creating a personal monthly spending plan. In business we tend to forecast and predict not only what our business will cost us but what we intend to make, this process is something that can easily be translated into our personal plans as well. Begin by tracking fixed expenses, i.e. rent, utilities, transportation, etc. and then decide how much can be allocated for variable expenses, i.e. entertainment, eating out, etc. This process will help decide where your money should go, keeping tracking and on top of your money is essential in becoming financially free.
Plan for your Future
Setting yourself up for future success relies on starting up, or adding to, a savings account plus also contributing to a retirement fund. Where you put your money, especially which bank, will set you apart in how you empower your personal finances. Search for banks that have a competitive interest rate plus a range of widely available free ATMs. The bank in which you select should also provide you with an option to track your online transactions and expenses, giving you the freedom to always know where you stand with your money. Creating an emergency fund is another essential part in planning for your future, giving you peace of mind in the case of a rainy day.
Downsize your Debt
The amount in which students within the United States owe in total tops an incredible amount of over $1 trillion dollars. One fourth of all debt accounts to credit card debt. Mortgages, car loans, and personal loans add to the combination of sources of debt many individuals find themselves in. Debt has become an seemingly common thread amongst millennials to baby boomers, however, tackling individual debt is more often than not something that tends to get pushed to the side each time bills are due. Boosting your savings and paying down your debt, from student loans to mortgages, is easier said than done but if you’re striving for financial freedom it is a non-negotiable commitment that needs to be made.