Being unprepared for financial emergencies can cause panic to set into your stomach. If you frequently find yourself wondering how you’re going to pay for bills and worrying where your next meal will come from, now is the best time to assess your savings, costs, assets, and monetary obligations to achieve your lifelong goals.

Imagine the comfort and sense of relief you can have if you don’t have to think twice about paying bills because you have a safety net. That’s called being financially independent or having financial freedom. 

Unfortunately, having enough savings, investments, and cash on hand and being prepared to retire may seem next to impossible. But don’t worry, you can have better chances of achieving financial freedom by following these habits:

1. Set specific life and financial goals

Desiring to afford your desired lifestyle is too general and vague a goal. To develop a concrete plan to meet your financial goals, be as specific as possible. 

One of the best ways to become more detail-oriented is to keep a financial journal, then write down what financial freedom means to you. You can also write how much money you want to have in your bank account, what age you should achieve this, and what lifestyle adjustments need to be made to save more money. 

Learning from others and how they met their financial freedom can also be a great way to get inspired about your own journey. Read more about successful Black entrepreneurs to get motivated and work with Black financial advisors who can serve as your partner and guide in handling your finances. 

2. Create automatic savings

Many people make the mistake of spending their money first before saving. However, the key to gaining financial freedom is to pay yourself first. Consider having an automatic withdrawal for an emergency fund that can be used for unexpected expenses. You can also take advantage of an automatic contribution to a brokerage account.

It’s easy to get tempted to splurge on your wants, but do your best to stay focused on your goals. If you have trouble resisting this temptation, pull the money the same day every time you receive your paycheck so it never even touches your hands. 

3. Make a monthly budget

Monthly bills are inevitable, so ensure that all of them are paid. That way, you can manage your savings better by sticking to a monthly budget. You can also stay focused on resisting the temptation to splurge and reaching your financial goals.  

4. Explore your investment options

The best way to grow your money is to invest. Compound interest will help your savings increase significantly over time. However, you shouldn’t expect to have lots of money miraculously. Achieving meaningful growth takes a lot of time.

Start by exploring your investment options. Consider opening an online brokerage account so you can quickly learn how to invest, create a manageable portfolio, and make weekly or monthly contributions to it automatically. 

Conclusion

Living from paycheck to paycheck is a nightmare because you are always worried if you can afford your necessities and wants. You may be concerned about your growing debt, medical issues, overspending, or cash emergencies. Still, you can take your path to financial freedom if you plan carefully, stay disciplined, and commit to the healthy habits listed above.

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