Achieving financial freedom is a goal for many people. For some, it means being able to pay bills with money left over each month or having a fully-funded emergency account. Others may want to retire early and travel. It generally means having enough savings, investments, and cash on hand to afford the lifestyle you want for yourself and your family.
Unfortunately, too many people are burdened with increasing debt, financial emergencies, spending, and other issues that prevent them from reaching their goals.
No matter how you define financial freedom, everyone can benefit with a few tips to put you on the right path.
Set Life Goals
A financial goal is any plan you have for your money. You can have short-term and long-term goals. A general desire for financial freedom is too vague a goal, so get specific. Write down how much you should have in your bank account, what the lifestyle entails, and at what age this should be achieved. Your goals should give you focus and keep you accountable. The more specific your goals, the higher the likelihood of achieving them.
Next, count backward to your current age and establish financial mileposts at regular intervals.
When you’re setting financial goals, make sure it’s the best choice for you. It’s easy to look around at what other people are doing and feel like you should be doing it too. But when we start comparing ourselves to other people, we’re playing a game we’ll never win. Put the blinders on, focus on your lane, and cross your own finish line — you’re off to a great start on your journey with Century!
Make a Budget
Making a monthly household budget—and sticking to it—is the best way to guarantee that you're on the right track. It’s also a regular routine that reinforces your goals and bolsters resolve against the temptation to splurge.
Live Below Your Means
Mastering a frugal lifestyle by having a mindset of living life to the fullest with less is not so hard. It starts by developing a mindset in which you prioritize building a strong financial foundation of savings before you move on to spending and investing.
This isn’t a challenge to adopt a minimalist lifestyle or a call to action to throw out things you’ve hoarded over the years. Distinguishing between the things you need and the things you want is a financially helpful habit to put into practice.
Take Care of Your Health
There’s no denying the correlation between financial health and physical well-being. Data from a US study by the big banks showed that 81% of respondents found other goals much easier to achieve when their finances were in order, while 70% stated that good financial health had a positive impact on their physical health
These tips won’t solve all of your money problems, but they will help you develop habits that can get you on the path to better financial health—whatever that means for you.