Financial freedom is a state where you have control over your finances, allowing you to make choices based on your desires and goals rather than being limited by how much things cost. Financial freedom is about having options and choices.
GETTING ON A PATH TO FINANCIAL FREEDOM
Pay Yourself First: “He that gathers by labor shall increase.” (Romans 13:11)
- Make saving money a priority. (Budget item)
- Pick a percentage (example:10%) of every dollar you earn.
- Put a percentage in a retirement account. (401K, IRA)
- Put a percentage in an interest bearing savings account. (Emergency Fund)
- Put a percentage in savings account (Vacation, vehicle, furniture, clothes, etc.)
- Small amounts matter (slow and steady wins the race).
- Make saving automatic if possible.
Control Your Expenditures: “For which of you, intending to build a tower, does not sit down first and count the cost.” (Luke 14:28)
- Maintain your four walls (Shelter, transportation, food, clothing)
- What kind of shelter can I afford? (Buy or Rent)
- What kind of transportation do I need? (New, used, public)
- How do I shop for food? (coupon, bulk)
- Where do I shop for clothing? (premium, discount)
- Do not confuse necessary expenses with unnecessary desires.
- Most people have more desires than their income can gratify.
- Know thy limits (create margin or breathing room).
- Study thoughtfully your habits (make adjustments as required).
- Pay as you go (pay with cash/debit card, avoid debt).
- Automate your regular bills (take the emotions out of the equation).
- Avoid raising your standard of living every time you get a raise (increase savings).
Engage in a Profitable Investment: “Build thy own house.” (Proverbs 24:27)
- Buy what you can truly afford (Cash, large down payment).
- Shorter term (recommend 15-year fixed).
- Monthly payment no more the 25% of take-home pay.
- Make payment bi-weekly if possible (payoff sooner).
- Houses typically increase in value.
- Build equity and tax benefits.
- Security and peace of mind.
- Gradually increase the size of your house.
Increase Thy Ability to Earn: “The heart of the prudent gets knowledge.” (Proverbs 18:15)
- As a man prefects himself in his calling even so does his ability to earn increases.
- Become an avid reader (areas that interest you).
- Continue to improve your current skill(s).
- Learn at least (1) additional new skill.
- Surround yourself with people who motivate you.
Be Generous: “Give and it will be given unto you.” (Luke 6:35)
- We harvest in proportion to our planting.
- We get as good as we give.
- Freely we have received, freely we should give.
- generosity is a key element of emotional health and abundance.
- Generosity accelerates the free flow everything positive in your life.
