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How to Achieve Financial Freedom

Financial freedom is about having the breathing room to live your life the way you want to. Learn how to have the financial freedom to do what you want.

Instructions

  • Step 1: Save for the long term Put money aside for long-term savings. If you are working for a company, have money automatically deducted from your paycheck and deposited into your savings account.
  • TIP: Save as much as you can for the future without sacrificing today.
  • Step 2: Save for a rainy day Save for a rainy day. Have enough emergency money set aside to cover three to six months' living expenses. In the event of a job loss, a car accident, or large medical bills, this money will carry you through.
  • Step 3: Minimize credit card debt Don't accumulate large, high-interest credit card debts. Use cash for non-necessities and pay off your card each month.
  • Step 4: Live below your means Keep your expenses under control by living below your means. Set up a budget and stick to it.
  • Step 5: Carry insurance Carry medical, home, and disability insurance and make sure your policies are paid up. If you have a family, purchase life insurance. Now you should be able to weather whatever the winds of fortune blow your way.
  • FACT: Consumer credit card debt almost tripled from $238 billion in 1989 to $800 billion in 2005.

You Will Need

  • Savings
  • Credit cards
  • Budget
  • Insurance

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