Today is Memorial Day in the United States, and I thought what better day than today to talk about financial freedom. I hope everyone enjoys their day, remembers the true meaning of Memorial Day, and I hope you learn a little (hopefully a lot) about reaching financial freedom from the articles I pulled together.
In case you don’t know what financial freedom is… Financial freedom is when you are able to live life without constantly worrying about money. It’s when you feel comfortable enough to follow your passion instead of thinking about the income you are bringing in. It allows you to not stress about an unexpected expense because you have an emergency fund.
Financial freedom isn’t about how much money you make. It’s about how much you save, your financial habits, your financial goals, and more.
The list goes on and on.
Here are my 10 favorite posts that will help you reach financial freedom.
1. Create a budget.
The average family carries a lot of financial stress. Most people have student loans, credit card debt, a mortgage, car loans, and sometimes other forms of debt. However, not many people have a budget.
According to a survey done by Gallup, 68% of households in the U.S. do not prepare a budget.
Budgeting can help you take control of your financial life, which can help reduce stress and let you reach your dreams.
2. Pay off debt to reach financial freedom.
Paying off your debt can lessen your stress levels, allow you to have more money to put towards something else (such as retirement), stop paying interest fees, and more.
Read more at How To Eliminate Your Debt.
3. Start investing.
I always say the first thing you need to do if you want to start investing is to just jump in. However, what if you don’t even know how to start investing?
If you are like many out there, you may not know how to start investing your money.
Investing your money can be a scary, stressful, and overwhelming topic to tackle. You want to invest so that you can:
- Retire one day
- Prepare for unexpected events in the future
- Allow your money to grow over time
4. Make more money to reach financial freedom.
Here on Making Sense of Cents, I discuss extra income, side hustles, side income, and how to make money online a lot. I believe that earning extra income can completely change your life in a positive way. You can stop living paycheck to paycheck, pay off your debt, and more all by earning extra money.
In fact, because of extra income and my blog, I was able to pay off $38,000 in student loans within 7 months, I was able to leave my day job in order to pursue my passion, travel full-time, and more!
Read more at Hundreds of Ways To Make Extra Money.
5. Find ways to save more money.
Finding ways to save more money may allow you to pay off your debt a little faster, improve your financial habits, help you reach your dream sooner, and more.
Read more at 30+ Ways To Save Money Each Month.
6. Don’t keep up with the Joneses.
Whether you are five years old and want that new toy everyone is playing with, or if you are 50 years old and are feeling the need to upgrade your house, car, etc., everyone has experienced wanting to keep up with someone else.
The problem with this is that keeping up with the Joneses can actually make you broke.
When trying to keep up with the Joneses, you might spend money you do not have. You might put expenses on credit cards to (in a pretend world) “afford” things. You might buy things that you do not care about. The problems can go on and on.
This can then lead to an excessive amount of debt and potentially set someone back years with their financial goals, if not decades.
Read more at Why Keeping Up With The Joneses Will Make You Broke.
7. Have regular family money meetings.
Talking about money and conducting regular budget meetings is an important task for every family and serious relationship to take part in. A family who has regular money talks and budget meetings is more likely to be financially successful and happier than a family that doesn’t.
Regular money meetings can lead to better communication between family members, a more unified financial goal, family members being more involved and motivated, and more.
Read more at Family Budget Meetings – Yes, You Need To Have Them.
8. Have an emergency fund.
An emergency fund is something I believe everyone should have. However, according to a report by Bankrate.com, 26% of Americans have no emergency fund whatsoever.
According to this same report, only 40% of families have enough in savings to cover three months of expenses, with an even lower percentage having the recommended six months worth of savings.
This is frightening to me, as having an emergency fund can greatly help you get through tough parts in life.
An emergency fund can help you if you lose your job, if your hours are cut back, if you have an unexpected expense, and so on.
Read more at Everything You Need To Know About Emergency Funds.
9. Improve your life.
Whether we are talking about changing your financial situation or changing your lifestyle, there are many ways to start making changes in your life so you can start living the life you want. After all, in order to reach financial freedom, you will most likely have to make some changes.
Read more at How To Change Your Life And Live Your Dream Today.
10. Stay motivated to reach financial freedom.
Even with how much I love saving money, every now and then it becomes easy to get unmotivated and want to SPEND ALL THE MONEY!
I’m sure I’m not alone either.
While many choose to live a frugal life, it’s not always easy. Some have large amounts of debt to pay off, others find it hard to stick to a budget, and more.
Finding financial motivators will help you continue to work hard towards your goal, even when it seems impossible. Without motivation, one might give up on a financial goal quite easily. This is why it’s so important to learn how to stay motivated.
What does financial freedom mean to you? Have you reached financial freedom?