Last Updated on May 21, 2020 by Shane Corbitt
It’s a no-brainer. Everyone wants to be rich, right? Or at least financially independent, not to have to worry about bills or to have to scrimp and save to get by. But if you’re like most people, all those good intentions come up against the sharp, cold reality of paying the mortgage or the rent, paying bills, buying groceries, kids needing new clothes and your car needs fixing again. And that’s before you start to even think of a vacation.
Or if you’re starting, there’s not much left from your paycheck. How on earth can you get ahead? Well, you can gain financial freedom, but you need to take personal responsibility for your finances and have a clear goal. Here are four secrets to a more secure financial future.
1. Manage your money
Even if you’re the sole inheritor of a family fortune, you still need to know how to manage your money, so it doesn’t slip through your fingers. It’s never too late to develop good money management habits.
2. Set goals
Where you want to be this time next year? In five years? Work out your big goal, then smaller ones so you can set your financial compass towards freedom.
Once you know where you want to get to, you can develop a budget and a savings and investment plan.
3. Take control of your spending
Do you treat yourself on payday? Does seeing that salary come into your bank account send you off on a spending spree? Being more disciplined about how you spend your money not only puts you in control of your finances, but you can also make objective decisions about how much to set aside for bills, how much to save, and still allow yourself some shopping pleasure.
4. Have an emergency fund
If you find yourself lurching from rich to broke, you need to stop that cycle by setting up an emergency fund. Have a separate bank account with enough money set aside to cushion you against the ups and downs of life. You might get sick or be out of work for a while. Make sure there is enough money to keep you afloat until things get better.
Setting yourself on the road to financial freedom isn’t about luck or skill. It’s common sense, practical action to free you from the boom or bust cycle that so many people find themselves in. Take responsibility and secure your financial future.
