Guest blog by Dwight Almony
For many people, financial freedom seems like an elusive goal. With inflation, stagnating wages, and many other obstacles, most people believe they will barely survive, let alone find financial freedom. However, financial freedom isn’t as elusive as many people think. Part of the reason that it’s not as hard to obtain is that your definition of financial freedom is unique to you.
According to an article from NASDAQ.com,ⁱ “Financial freedom is a state where you have complete control over your finances, allowing you to make choices based on your desires and goals rather than being limited by how much things cost. It means having enough income or savings to cover your expenses, giving you the freedom to live life on your terms.”
From that definition, the first noteworthy point is that you would have complete control over your finances. Unfortunately, too many people manage their finances like someone riding a bicycle with their eyes closed. They’re going to get somewhere, but it most likely won’t be where they want to go, and they will end up injured along the way. Being in control of your finances means you have a plan for how to spend the money you earn. Part of that plan involves using a monthly budget and establishing goals for how you want to live your life. Both of these need to be written down. Without writing them down, there’s no way to have accountability with yourself.
In addition to having your goals and monthly budget written down, you must reduce and eventually eliminate your debt. Your debt needs to be eliminated because it robs you of opportunities and freedom since it steals money from your future due to the interest you pay on that debt. You also need an emergency fund for 3 – 6 months of household expenses. Having an Emergency Fund will prepare you for when an emergency arises. The thing to note about emergencies is that it’s not “if” one will happen but when one “will” happen. Having an Emergency Fund makes the unexpected problem less of an emergency and more inconvenient.
Another component is working as a team with your spouse if you have one. When you collaborate, you will accomplish so much more than if you were going in your own direction. I like to use the analogy of draft horses (like Clydesdales). One of those horses can pull approximately 8,000 pounds. However, when two of them work in unison they can pull around 24,000 pounds.
Finding financial freedom also includes the following:
- Making wise purchases.
- Regularly giving and saving at least 10% of your income.
- Limiting expenses on vices.
- Continually educating yourself in good money management practices.
- Surround yourself with others who share your financial interests and goals.
- Create a solid defense to protect your family, money, and possessions by having the suitable types of insurance, a Will, Power of Attorney, and Medical Directive.
Finally, having an accountability partner lets you stay on course and guides you when encountering difficulties. The American Society of Training and Development says, “You have a 25% chance of achieving an idea you decided to adopt. However, your plan will experience a 95% success rate when you have another person hold you accountable.”
By implementing the above steps and having a profound determination to achieve financial freedom, you will be well on your way to enjoying the benefits of having it.
For more information on how Dwight can help you achieve Financial Freedom, contact him through the following:
Dwight Almony – Master Financial Coach
taketwofinancialcoaching@gmail.com
taketwofinancialcoaching.com
I hope today’s blog both challenged and encouraged you. If so, make sure you sign up to receive blogs posted every week. Check out our resources at TransformingFamilies.org. Our mission at Transforming Families is to provide relationship restoration resources that enable you to become the man or woman God created you to be.
I also provide one-on-one coaching; if you want to improve your relationships, let’s connect through e-mail at ‘rturner@transformingfamilies.org’. My hope for you is that through these blogs, references, and resources, God will transform you from being bruised or broken to an abundantly blessed beloved child of God.
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