Steps to Financial Freedom

Financial freedom is power to do what you will with your life without being forever bound by lack of money and over burdened by debt. This worthwhile goal can be achieved by anyone through careful planning and persistence. Just follow these steps:

• Pay yourself first
• Control your spending
• Get free of debt
• Build a contingency fund
• Become an informed investor
• Give

Achieving financial freedom is a gradual process that will happen as you implement all these simple steps in your life.

Pay yourself first

Every paycheck, keep some of your money for yourself and keep it. It takes money to make money, so goes old saying. To achieve financial freedom, you'll need some seed money that can grow into a substantial nest egg.

Take a percentage or a fixed amount from each paycheck and add it to your seed money, at least 10%, if possible. This is your investment money. Do not use it for anything else. Every paycheck be sure to pay yourself first. With time and persistence you'll soon have funds to start making profitable investments. You'll be a lender and not a borrower. Reinvest all profits and dividends to maximize growth of your nest egg.

Control your spending

Make sure that your spending is less than your earnings. When you find yourself in a hole, first thing to do is STOP DIGGING. You may have to create and follow a budget.

Creating a budget is easy; following it may be hard. Start our by tracking your current spending habits. Visit www.financesoftware.net for software that can help you. Summarize your spending into general categories such as Food, Clothing, Entertainment, etc. Then you can decide which categories you can cut and by how much. Continue to track your spending and do your best to stay within limits you set for yourself.

Get free of debt

Debt is bad, "the borrower is slave of lender", and none of us wants to be a slave. There are some debts that may be helpful, such as business debts to increase profits, home mortgages, and car loans. Avoid any other borrowing, even pay cash for your car if possible.

Increase size of payments you're making. Pick creditor who charges highest interest and increase that payment by as much as you can. When that creditor is paid off, take payment amount and apply it to next creditor. Continue this process until all are paid off. Destroy and close all or most of your credit card accounts.

Build a contingency fund