5 Practical Steps to Achieve Financial Freedom

One of the four Joy Zones is Financial. This is a coaching area of focus because the emotional relationship you have with your financial standing has an impact on your overall well-being. Striving towards financial freedom to lessen financial stress should be on the top of everyone’s list. There is a correlation between financial freedom and the prominent desire to lead a more joyful life. Financial freedom does not happen overnight, but it is attained by taking incremental proactive steps to achieve it. You can start right now by taking these 5 practical steps and you will gradually reap the benefits overtime. 

1: Define Your Financial Goals

Step 1 is to simply figure out what you want to achieve and your ideal end result when it comes to financial freedom. Do you want to have more money for traveling? Save for a house or early retirement? Maybe you want to earn more and spend less. Taking the initiative to write out your financial goals can ensure that you have a blueprint to guide you and refer back to. You should also consider it a living and breathing document that can be modified at any time in the event that your needs or life change. When defining your financial goals, factor in how you currently allocate money for the things you need versus the things you want on a monthly basis.

2: Make an Essential Budget

Creating a budget that outlines your monthly essentials can help you identify your disposable income; which can then lead to monitoring and spending more wisely. Budgets are helpful because you know in advance the amount of money you spend on monthly bills, household or personal items, and other miscellaneous expenses. Budgeting is a great tool used to determine fundamental expenses and can lead to healthier financial decisions. Conscientiously following a budget will also keep you out of debt or help you work your way out of it. Check out this free budget planner here > https://www.nerdwallet.com/article/finance/budget-worksheet 

3: Work on Diminishing Your Debt

Let’s be honest - getting rid of debt helps to relieve an ample amount of stress. Diminishing your debt is the kind of feat that happens over a period of time. However, if you create a payment plan and identify all of your debts then you can truly make strides towards achieving financial freedom. Start with your smallest debt then conquer your highest debt or simultaneously tackle them both. There are many resources out there to help you consolidate your student, credit card, medical, and other debts. I implore you to perform thorough research on consolidation options to make sure they are legitimate. Consolidation can reduce your monthly payments and makes it easier by putting your debts in one place. Diminishing or completely getting rid of your debt is the major key to financial freedom! 

4: Make a Plan 

At any given moment, life can happen. Planning ahead can be very helpful in case you are faced with a financial emergency or unexpected events. Review your financial goals (step 1) and essential budget (step 2) to then map out your financial plan and start a “rainy day” fund. You can begin by saving 10% each pay cycle and increase accordingly. Financial planning and saving for unexpected events and the future will prove to be imperative. Check out retirement savings, investment, and financial planning resources that best suit your financial needs. An aspect of financial freedom is being able to enjoy the fruits of your labor, so make a solid plan.

5: Save & Invest

Once you’ve outlined your goals, crafted a budget, figured out how to diminish your debts, and created a solid financial plan - determine how much you want to save and invest. In addition to your current income, savings and investments are essential to increasing your financial wealth. You can speak with a local financial advisor to learn more about investing and starting a lucrative investment portfolio. Creating multiple streams of income can also help you meet your financial freedom goals faster. You want to find ways to make your money work for you!

Joy Gem: Achieving freedom in each area of our lives leads to more uninhibited joy.