I’m excited to be creating a new series of articles titled FREEDOM that will provide a clear process for experiencing financial freedom. Using FREEDOM as an acronym I will lay down some foundational principles that will be needed to experience financial freedom and then build upon them. This will make it easier for each person to figure out where they are in the process and what they still have to do in the future.
Freedom begins with F- Figure Out a Budget: Financial freedom starts with creating an every dollar budget at the beginning of each month and following it with diligence.
Next is R-Raise an Emergency Fund: Save $1,000 to reduce risk immediately. Once you eliminate debt bump it up to 3-6 months of living expenses.
The first E is Elimiate Debt: Apply every extra dollar each month after necessities toward paying off debt using the debt snowball.
The second E is Earn Interest: Start putting your money to work for you by investing so you can reap the rewards of compounding interest.
D- is Develop Increased Generosity: Live life with an attitude of gratitude and generosity and experience the true riches of financial freedom.
Once these steps are completed the person has been FREED and if they have kept their focus on God and following the steps they will truly experience freedom. The final two letters are not necessarily part of the steps, but are two things that each person must consider.
The first is:
O-Own proper Insurance: Don’t forget Homeowner’s/Renter’s, Auto, Health, Life, Disability, Identity Theft, and Umbrella policies.
And Finally M is Make Estate Plans: Estate planning helps ensure your family is taken care of.
These are the steps to reducing financial stress and experiencing freedom. It is my prayer that you will find these steps useful and will engage with each article and share them with your friends so they too can start the process of experiencing financial freedom.
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Owner | Higher Power Living LLC.
Ramsey Solutions Master Financial Coach