Financial Freedom - 5 Ways To Get Creating It

A Financial Freedom, It will be nice to finally have enough money to do the things you've been dreaming about. These are 5 steps shows to have financial freedom and fulfill your dreams.

1. Pay Down Debt - The best way to pay off existing debt is the snowball effect or avalanche. Mark off several columns on a piece of paper. In the first column on the left, write the names of the months, beginning with the upcoming month. At the top of the next column, write the name of the creditor you want to pay off first. It may be the debt with the highest interest rate, or the earliest pay-off date. List the monthly payment for that creditor until the loan is repaid. At the top of the next column, record the name of the second creditor you want to repay, and list the minimum payment due each month. After you have paid off the first creditor, add the amount of that monthly payment to your next creditors monthly payment, and so on, creating a major avalanche by the time you get to your last creditor.


2. Avoid Debt - Spend less money than you make. One of the most common debt traps people fall into is making a purchase with a credit card thinking, "Oh, I'll just pay with my next paycheck", then when their check comes, they find something else they would rather spend the money on, so they only make the minimum monthly payment on their credit card. If you don't have the money to buy the item you want now, save until you have the amount you need. Maybe after a couple of weeks you'll find you didn't really want the item after all.

3. Use A Budget - Make a realistic budget and stick to it. Budget for a specific period of time - weekly, biweekly, or monthly - according to your pay schedule. Include the basics such as, food, mortgage or rent, property taxes, utilities, transportation, savings, debt payments, insurance, medical, clothing, entertainment, and other personal expenses. A budget allows you to see exactly where your hard earned money is going, enabling you to make smart choices about what you need and what you can do with out.

4. Pay Yourself - Many people find it hard to put money away for themselves, after all the monthly bills are paid there isn't anything left to save. Pay yourself first! A good amount would be 10% of your income, but if you are working on paying down debt, start with a smaller amount, then once your debt is paid off begin putting 20%, or more if you can, into a savings account. It's also a good idea to have a couple of different savings accounts, one for long term or retirement, another for vacations, and one for emergencies such as, car repairs, medical, or any other surprises that might come your way.

5. Give To Charities - Giving is a need that all humans inherit from birth, it is the key to happiness in this life, whether you choose to give time or money. Many of the trials we face in this life can be overcome by the simple act of giving. If you decide to give money, be sure to research the charity you're donating to and make sure that it's legitimate and non-profit organization.

Those are the 5 easy steps to reach your financial freedom easily.