Together We Save: 10 Tips Towards Financial Freedom

by Minority Fortune

2010Here we are at the beginning of a brand new year. It’s time to get our priorities in order so that we can advance successfully in our wealth journey. Regardless of your accomplishments in the previous year, it’s time to step it up a notch. Aim for the extraordinary. Reach for the stars!

10 Steps for Financial Freedom

1. Know your cash flow: List all of your incoming cash and your bill payments. What are you left with?
2. Set Goals & Budget: Upon knowing your cash flow, it’s time to set goals. Make big cuts where things don’t matter and make big investments in paying yourself. Now is not the time to play it safe.
3. Reduce spending. Make sure your bill amounts are the lowest they can be. If not, haggle or switch companies. Buy in bulk. Use coupons. This includes finding ways to reduce your taxes.
4. Avoid buying impulsively. When you’ve reached your planned maximum of disposable income, stop going into stores that exploit your weak spots.
5. Reduce guilty pleasures to 50% by the end of the year. Will you die if you cut back on your guilty pleasures? Survey says, probably not. You’re robbing yourself of wealth everytime you give your wealth away to big companies in exchange for a temporary satisfaction. To start off, try finding a DIY (do-it-yourself) substitute for your guilty pleasure. Gradually cut back in small increments monthly.
6. Increase investments with leftover cash: Whatever is left, put it somewhere to work for you. That doesn’t mean letting it sit in a zero interest savings account either. Refer to your goals and invest appropriately according to whether you plan to execute said goal in the short or long term.
7. Avoid borrowing money. Paying interest is evil. Debt is not sexy.
8. Educate yourself. There are plenty of free resources and mediums to do so. There’s Black Enterprise magazine, the Wall Street Journal, Investopedia, Personal Finance blogs, and the library. Read up on areas that you believe will advance your wealth journey. There’s a lot of imposters in the personal finance area, so never hand over your money to someone unless you’ve thoroughly invested their background and they practice what they preach. Stick with those who have earned a great deal of respect in their field.
9. Seminars & Conferences: Motivate yourself by attending events on investing and financial freedom.
10. Create an emergency fund for those rainy days. Keep your emergency fund off limits until it’s needed in dire situations. The consensus is to have at least six months of living expenses saved up. Suze Orman recommends that you have eight. Afterall, it is a recession going on.

Let’s move through 2010 with these ideas in mind. If done, we’ll be destined for great success in our wealth journeys!

*Image courtesy of Anderson Tours.
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