How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.
1. Assess the Situation 🤔
To begin the path to financial freedom, you must know where you are. While most people know what they make, they are a bit hazier on where that money is going. Little purchases add up very quickly and by assessing your situation, you’ll be able to identify where most of your money is going.
2. Create a Budget 📊
Once you know where your money is going, it’s time to analyze. Many people feel that creating a budget is a scary. Budgeting is merely creating a plan for how you’d like to spend your money in the future. It’s simply a process of deciding if what you spend is reasonable or excessive.
3. Take Another Look 👀
After about a month, reassess your spending to see if you are within your budget. Make adjustments to ensure your spending is not keeping you from your financial goals and that your budget is not unnecessarily restricting. Financial discipline can be challenging, but it is a tool to help you reach your financial goals.
4. Credit Card Usage 💸
Some people have difficulty controlling spending with credit cards since a card is so easy to swipe. They can get into the habit of mindless swiping until the card is declined. Fixing this requires a shift in mindset. You need to restrict yourself to make purchases only if there is sufficient cash available in your bank account to afford the expenditure.
5. Meet with a Professional👩💼
Speaking with a professional can help you to gain a heightened understanding of what your specific struggles are and how to overcome them. An outside perspective, especially one from a financial consultant, can help you develop the right approach. Additionally once you’ve obtained your goals, a professional provides the advice and guidance you need to gain financial freedom and retirement.
Contact me for help: RHadem@appreciationfinancial.com