We all crave financial security and independence, no? We don’t want to be beholden to anyone; we want to build a legacy and stop depending on others to provide for our future. That is true freedom.
This path to economic freedom will not be handed over; it is something we must fight for and claim. Over the course of the year, we will be sharing a weekly tip to aid in the pursuit of financial independence.
We kick it off today with four simple financial best practices you can begin immediately to protect your future and your legacy.
Create a Budget: It’s essential to know how much money you have coming in – and be aware of how much money is going out. A budget will help you identify areas of overspending, discover places you can cut back, and ensure you’re not going into debt and living beyond your means. It can be as simple as an Excel spreadsheet or using a budgeting-specific app on your phone.
Create an Emergency Fund: Having a small amount saved for unexpected emergencies can give you peace of mind that if your water pump needs to be replaced or you miss a few days of work due to illness, you have something to fall back on. Just remember that this emergency fund should only be used for true emergency situations.
Pay off Debt: Make it a priority in the new year to tackle your debts – like credit cards and personal loans – as quickly as possible. Be militant, cut back in as many places as possible, and funnel all your money into resolving these debts. Every day that passes is more interest you’re paying. That money could be (and should be!) going into your Emergency Fund or Retirement Plan, not to a third party.
Invest for Your Future: The right time to start thinking about retirement or your children’s education is right now. So, start investing in stocks, bonds, real estate, or other assets. Be wary of “get rich quick” cryptocurrencies or meme stocks. Do your due diligence before investing, or consult a professional.
Resolve today to put these four things into practice; it’s the first small step towards a future that’s yours.
Tell us what you think; are you already doing these things? If not, why? Is there anything else you would add to this list? Leave your thoughts in the comments below.