10 Steps To Financial Freedom – How To Be Good With Money

10 Steps To Financial Freedom – How To Be Good With Money

if you could design your life and plan
everything in it what would it look like some people would love to travel all
over the world some people would love to own and live in their dream houses and
others may want to be able to pursue their dreams or maybe even have that
dream wedding they’ve always wanted and so much more the list is endless while
they do say money won’t bring you happiness
it sure does play a big role almost everything you choose to do requires you
to part with some box I’m not trying to say money is everything but it really is
important and like Kanye West puts it money isn’t everything but not having it
is but we’re not here to give you a second hand advice from rappers today we
share with you 10 steps you can take to achieve complete financial freedom
imagine a life where you don’t have to worry about money the decisions you make
won’t be based on what you have in the bank account you won’t take that job you
don’t like because it pays off better you won’t have to check the price tags
on organic foods just to confirm you can afford them you can opt to take uber
black whenever you wish – sounds like a wonderful life right well it’s quite
possible to get there but you have to understand you won’t reach there
overnight just like everything else in order to see results you will need to
put in the effort be really disciplined and follow the steps we’re about to
share take some notes this just might change your life
before we start hit that subscribe button in the Bell notification now
let’s begin number one set life goals the very first step is to create a list
of life goals don’t just scribble down a couple of
things you want to achieve but take some time to really soul search and identify
what you really want out of life once done with the list attach timelines to
them and if possible a cost be very specific accurate and realistic when
doing this it’s okay to be overly ambitious but we both know it’s not
possible to buy a million dollar home within six months well unless you win
the lottery and with the one out of a hundred thousand chance this is almost
impossible stick to what’s possible and achievable we recommend putting this
list somewhere where you’ll see it every day like on your fridge for instance
number two create a budget it’s important to know exactly what you
consume everyday and how much it costs this is the only way to truly understand
where your money goes writing a household budget and sticking to it
relentlessly will end up saving you a lot of money it’s a great routine that
reinforces your goals and bolsters the temptation to splurge on unnecessary
things trust me number three emergency fund start by
creating an emergency fund the ultimate rule of an emergency fund is saving up
six months in recurrent expenses and stashing it somewhere just in case
anything out of the ordinary happens by out of the ordinary we don’t mean
vacations that fancy watch you’ve always wanted or any miscellaneous purchase
that money should only be used for actual needs which would otherwise deter
or slow down your life these include emergencies such as your car breaking
down water heater system failing or unexpected hospital bills only the most
important needs why create an emergency fund everything that can go wrong will
at some point go wrong Murphy’s Law so instead of borrowing money or using your
credit card which will make you get further into debt use your save funds
this is the first step anyone who wants to achieve financial freedom should take
number four plan to pay off debt about 80% of Americans are in debt and this
number is steadily increasing at an alarming rate debt isn’t entirely bad in
fact it has its benefits for one you can build up a good credit score by
borrowing money and returning it in time what’s wrong with debt is the fact that
people overuse it 65 percent of Americans have maxed out their credit
cards at one point in their lives there are two rules that should be abided by
when it comes to debt only borrow money for purchases that will appreciate for
example a house a piece of land and any other asset that fits into that criteria
the other rule is to only borrow money when you have a plan to pay it back as
businesses do in short what we’re trying to say is
don’t use your credit card to purchase that Birkin bag you’ve just seen on a
window while debt may be good in some cases it can dent your account
tremendously when you’re paying off a couple of hundreds of dollars a month
for car loans student loans and any other loans this restricts your ability
to save money or even invest therefore it’s imperative to
create a plan to clear off your debt and stick by it you’ll end up saving
thousands of dollars in interest if you manage to pay it faster than the
repayment time these savings can be added up to your account or used in some
investment with great returns essentially creating more financial
freedom so what’s the best way to pay off loans faster there are a couple ways
to do this you can start by categorizing each loan
based on the interest rate and pay off those with the highest first there’s
also the snowball method which takes into account human behavior this
requires you to pay off the smaller loans first which will then give you the
momentum and Psyche to tackle the others number five retirement fund to attain
financial freedom you have to make short-term sacrifices for the long-term
gain one of the greatest sacrifices is having a retirement fund having a 401k
is one of those things you know you really need but haven’t paid that much
attention to and if you already have one you aren’t contributing the maximum you
can having this fund is crucial for security in the future by saving a
little each month you’re guaranteeing yourself a dignified retirement and who
wouldn’t want that also if you manage to store up enough
you can achieve early retirement comfortably stop wasting time and take
the steps today number 6 start investing today this is the only way your money
can multiply once you’ve created a structure of managing your income and
the above steps go ahead and create an investing plan compound interest will
grow your money exponentially over time however please note that you will need
to be patient as results will only be seen over long periods of time so where
do you start don’t try to be a stock picker or think you’re the next Warren
Buffett instead open an online brokerage account which allows one to learn how to
invest and create a portfolio after doing your research you can create
weekly or monthly deposits to this account number seven create automated
savings one of the wisest things you could ever do for your finances is to
set up automated withdrawals once you have an outlined budget loan payment
structure savings model retirement fund monthly contributions then you can
activate automated deductions monthly the money should be pulled out the same
day your paycheck comes in so you can avoid temptation
completely have you ever been in a situation where you just don’t know what
happened to your money you received your paycheck but right after a couple of
days your account is empty and you’re clueless to where it went
then maybe it’s about time you created automated deductions talk to your bank
and find out how you can connect these automated debt payments today number
eight watch your credit score the credit score
is the determinant of so many things it determines the rate at which you will
receive a loan for your car or when refinancing your home and so much more
what most people don’t take into account is that it determines other seemingly
unrelated things such as life insurance premiums and car insurance most
institutions reason that someone with a low credit score is likely to be
reckless in other aspects in life such as drinking and driving
you can potentially lose a lot of money in the long run for having a bad credit
score therefore keep an eye on your credit report regularly to ensure there
are no black marks that could tarnish your good name number 9
continuous learning knowledge is the key to becoming financially free regularly
review all changes in the tax regulations to ensure all deductions and
adjustments are maximized stay up to date with financial news to identify any
developments within the stock markets and be quick in adjusting your portfolio
accordingly other than being financially literate
also take time to improve your knowledge within your career if taking that extra
course will increase your chances of getting a better paying job go for it
you’ll also be in a better place to retain your job when the company is
doing retrenchments today there are hundreds of certified online courses
that will train you for a small fee while some are completely free number 10
maintenance take good care of everything you own this includes your car home
lawn mowers and even clothes the longer they last the less you need
to repair or replace them you will end up saving hundreds of dollars yearly on
unnecessary maintenance costs if it’s your car take it out for regular
servicing and use your gadgets responsibly this also applies to your
body take good care of your health eat well and exercise to avoid time and
money wasted in hospitals also your general health also determines your
insurance premiums being obese and having a red
– multiple ailments can cause your insurance cost to skyrocket
also avoid habits that would put your health at jeopardy this includes habits
like alcoholism smoking and abuse of any illegal substance some companies have
instilled restrictions on the allowed number of sick days
anyone who exceeds the limit incurs a notable deduction in their paycheck you
have no choice but to take better care of yourself and your thanks don’t expose
yourself to health dangers as the price will be a hefty drawback in your journey
to financial freedom while this won’t automatically guarantee you’ll achieve
your financial goals it will help you develop habits that will get you on the
right path I know we said we’d give you ten steps but it doesn’t hurt to learn
one more right number eleven hire a financial advisor
once you’ve followed all the above steps and practice them for a substantial
amount of time you’ll have amassed a decent amount of money the money might
be there but you don’t know what to do with it this can lead to impulse
purchases and misuse of funds that could easily take you back to where you
started the next step to take when you have chunks of money that you don’t know
what to do with is to get an expert to educate you and help you through the
decision making process not just any expert choose one with experience and a
reputable image you don’t want to create new problems that didn’t exist if you
can’t find someone you can always choose to educate yourself and handle your
money accordingly the internet is your unlimited source of information you can
also enroll for short courses in money management which are reasonably priced
and extremely informative that’s it for today we hope you’ve learned something
it’s not hard to achieve financial freedom but with discipline and proper
planning nothing is impossible we wish you all the best as you take on this
journey leave a like if you enjoyed this video and save this video for future
reference so in summary one set life goals to create a budget 3 set up an
emergency fund or plan to pay off debt 5 set up a retirement fund 6 start
investing 7 create automated saving 8 watch your credit score 9 never stop
learning 10 take good care of everything you own and finally 11 hire a financial
advisor thank you so much for watching like share and subscribe for more
transformative content

21 thoughts on “10 Steps To Financial Freedom – How To Be Good With Money

  1. As always, such an informative video! The bottomline to financial freedom is DISCIPLINE! 😄

  2. Steal my NOTES

    – Create a list of your ambitions.
    – Attach Timelines to them.
    – Be accurate and realistic.
    – Put this list where you can see it everyday.
    – Know exactly what you consume everyday and how much it costs.
    – Keep a household budget and stick to it relentlessly.
    – Save up six months in recurrent expenses and stash it somewhere.
    – This money should be used for actual emergency needs.
    – Don't overuse debt money.
    – Only borrow money for beneficial things.
    – and when you have a plan to pay it back.
    – Plan to repay and stick to it.
    – Pay the debts which are with higher interest.
    – For security in future.
    – May result in early retirement.
    – Create investing plan with compound interest.
    – Automate deductions from you account for regular saving ensurity.
    – Should be deducted same day as your pay day to avoid temptations.
    – You can lose a lot of money in long run for having bad credit score.
    – Keep an eye on credit score regularly.
    – Ensure all deductions and adjustments by regularly reviewing tax regulations.
    – Stay up to date with financial news.
    – Take good care of everything you want.
    – Avoid unnecessary maintenance costs.

    As always my crazy passion is to share summaries like Started doing it on my channel with PDF summaries ✌️
    It’s time for me to learn more to be financially free🧐

  3. I was always a fan of Kanye’s other life advice – “if you ain’t no punk, holla we want pre-nup”

  4. I don't plan to go to college since I have other goals and ambitions. So investing my money is my way to go, this video helped out alot and I thank you for that! 😊

  5. Number 1 to 10 – If you require a loan for anything, you are not financially free. Learn how to make Passive Income using MSIs (Multiple Streams of Income) and ignore the fraudulent credit system.

  6. While I can see that this video is insipired by a similar video of Matt d' Avella, i liked your take and extra tips ! Keep it up 😉

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