In order to get on the road to financial freedom, you are going to make a few sacrifices. It’s not going to be easy giving up things you love in the beginning, but if you work hard you should reap the benefits of financial freedom.
The first thing you have to do is to:
Stop your lousy spending habits: If you are living paycheck to paycheck; and you are spending more than you make then it’s time to evaluate exactly where your money is going.
If you don’t have a budget, now is an excellent time to create one because if you don’t; you might sink deeper into debt.
To begin make a list of the financial assets you have coming in like your paycheck, now make a list of the expenses you have to pay every month (credit card bills, utilities, insurance). If you don’t have any money left over after paying your bills, then it’s time to let go of some things that you have but don’t need; like cable television, designer clothes, and other things that you are wasting with your money. This will free up extra money, so you can create an emergency savings fund, and get your bills paid off quicker.
If you need a free money management program to help you budget; then Mint.com is a good financial program to help you get started on the road to saving money.
Even if you are living paycheck to paycheck you still need to save at least 10% and have a financial adviser explain to you where to put your money, so it can gain interest in a savings account.
Use cash instead of credit, when you use cash you tend to be more aware of where your money is going. When you use credit it’s easy to forget how much you’ve spent until you get the bill at the end of the month.
Start living below your means: if you want to save money you can’t hang out every weekend at your favorite restaurants, or the mall. Instead, rent a DVD for $1 at places like redbox or find free things to do in your city on the weekends, look for discounts on the things you like to do. You should start using coupons and think about buying generic instead of brand name items to save money.
Today is the day for you to start looking at all of your expenses, and start making the necessary changes that you need to make to get on the road to of financial freedom.
What are you doing to get on the road to financial freedom?
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I am so guilty of NOT doing everything that you have mentioned. We used to live from paycheck to paycheck and sometimes even not managing to do that and charging our c/c. Finally, I realized how much money we were paying to the banks instead of ourselves and said enough is enough. Now, we are trying to pay off our debt.
Aloysa recently posted.. last Aloysa’s Reading Picks
Thanks for stopping by Savings Scoop Aloysa, and thanks for welcoming me to Yakiezie.
I’m still learning how to save but, I’m much better than I was six months ago. Hopefully next year this time I’ll be a pro and saving and spending money wisely.
Great advices to start out with. It’s tough to start investing, but the earlier the better. We also use cash for discretionary spending and each gets $100/week allowance.
Welcome to Yakezie!
retirebyforty recently posted.. last retirebyforty’s investment fundamental 7 – Stock Participation Plan
Thanks,
I’m still learning but I’m getting a better at investing.
Very clearly stated and important concepts. I appreciate your target market and believe that targeting those living paycheck to paycheck can make a huge difference. Welcome to Yakezie. (stop by and pick up my free ebook 20Minute Guide to Investing)
Barb Friedberg recently posted.. last ARE YOU WEALTHIER THAN YOU THINK What do Success and Wealth Mean to You
Hello Barbara,
Thanks for stopping by Savings Scoop, and thanks for welcoming me to yakezie, I enjoyed reading how your parents got started in acquiring wealth, with the selling the piano’s. I’ll be following you on twitter.
Andrea