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| Financial Freedom |
Here are some questions to jolt your mind to find out the state of your personal financial situation:
- Are you making regular payments to reduce your debt? Debt is the major obstacle that prevents you from enjoying financial freedom. Creditors are after you for the money that you have owed and there is no peace of mind. Compound Interest on debt is accumulating at an alarming rate. The sooner you can clear off the debt the better it is for you.
- Are you able to meet all your expenses and paying yourself with your income every month? It means you are not overspending and you are able to save. You are also staying away from debt
- Are you saving for an emergency fund? It is necessary to provide a cushion for unemployment, unexpected medical expenses and other exceptional items.
- Are you saving for big-ticket items? Don’t incur interest by getting a loan to buy the latest PC or TV. Save the amount and buy it in cash.
- Are you saving for the down payment for your car and your house? The larger is the down payment, the smaller amount will be the monthly installments you need to pay and the easier it is for your monthly budget.
- Are you saving for your children’s education as well as your retirement? The earlier you start to accumulate a fund for your children’s education and your retirement the more you will be able to provide for these purposes.
- Do you have adequate insurance to cover medical expenses and incomes losses due to accidents and critical illnesses? Accidents especially involving cars kill more people than any other causes. It is prudent to protect yourself in case of an accident that you can pass the medical costs and the loss of income due to disablement to the insurers.
- Are you keeping yourself in good health? Staying healthy means you are not incurring medical expenses. Being healthy also means you have the energy to perform at your best to protect your earning power.
- Do you continue to learn more about managing your personal money? Be knowledgeable about issues relating to your money, taxes and investments. Learn more about ways to reduce expenses, tax relief and investment opportunities.
- Are you growing your earning power? Update your know-how in the area of your expertise and acquire additional skills essential at the workplace to make yourself a more valued employee. Be creative and innovative by getting out of your comfort zone to enhance your earning power.
Financial freedom is free from debt and enjoying financial independence. Are you enjoying it?
Great article! The problem with most Americans is they don't think about what's in it for them if they save up for retirement at an early age. Most are easily swayed by consumerism which tells them that they should have the latest electronic gadgets, the newest gas-guzzling cars, and other stuff that really don't matter. Financial freedom is something that must be worked for and it won't come if you'll just ignore the tips above.
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