April 13, 2015
Name five habits/behaviors that can place you on a path leading to reaching financial freedom.
Name five habits/behaviors that can place you on a path leading to reaching financial freedom.
1.Saving. (Saving a larger percentage of you current income than appears necessary.)
2.Spending less (Don’t get caught up in the latest fad or trying to keep up with the Joneses.)
3.Make more (If you make more money you can save more.)
4.Invest wisely (If you invest your money such that there are not leeches taking part of your hard earned money away every day/month/year you keep more)
5.Learn continuously (This is applicable to financial freedom and all parts of life. Maintain curiosity about how things work. The more you learn the better decisions you can make to improve your life and the lives of others.)
1 Pay yourself first. 2. Save 20% of your pay check. 3. Look at total costs and not monthly. 4. Pay credit cards in full. 5. You are the answer.
1. Pay off your debts in full and on time.
2. Track your spending: Know what you are spending your money on, how much of it you are spending, and how often you are spending it. This will help to give you a bigger picture of what you do with your money each week/month/year.
3. Know where you are at financially: Know where your money is going, how much you are paying in expenses/fees, how much of a return you are making, etc. so that you are informed and aware of your financial position.
4. Set goals: Set short term and long term financial goals for yourself and remind yourself of them often. This will help you to figure out where you want to go with your financial life and help you to lay out some guidelines to get there.
5. Live frugally: Don’t get caught up in the materialism of life. Buy what you need, enjoy yourself every once and a while, but save the majority of your earnings for later in life so that there will come a time when you no longer have to work to be able to get by.
1. Set Goals – By setting long-term goals and short-term goals you will find the motivation to drive your daily behavior.
2. Become less Materialistic – Buy less stuff. Do not determine your self-worth by the amount of stuff you own. Find contentment from the inside and you will practice healthier financial behavior.
3. Pay yourself first – Take 20 percent of your gross income and pay off your debt on depreciating assets, Then use it to fund your emergency account, and then starting investing it wisely.
4. Continue to Educate – Take the time to understand what the best course of action is and why. If you act before you are informed the greater chance you will make an unwise decision.
5. Act – Take what you have learned and apply the information to you situation to help grow your wealth.
Once you have acknowledged what you need to do:
1. Self educate (and continue to learn)
2. Create the mindset and constantly have an idea of your goals (keep yourself in check, its like sticking to a diet, if you can’t maintain willpower, you will fail)
3. Pay yourself (by saving and investing – 20%)
4. Pay off debt and don’t get back into it (which requires living below your means and not spending as much on unnecessary things, if you use cards or have loans, keep them paid on time. Pay extra when you can. Don’t use more than you need to)
5. Track your spending (this way you know where to make cuts, you always know where your money is going and how much)