Financial success and freedom are the goal of most people throughout the US. In this economy it has become increasingly difficult to reach that goal for most families and individuals. The best way to start your journey to financial success is to find out about the essential steps necessary to reach that goal.
Here are the top 10 ways to reach financial success:
1. Stick to a budget
Knowing how much money you have coming in and going out each month is key. Set a budget for your expenses and stick to it. This will allow you to put any extra money away for emergencies and will help you stay out of debt!
2. Don’t spend more than you earn
These days this is often easier said than done, but making sure you are making enough to cover your monthly expenses is imperative to achieving financial independence. Make sure to sit down with your finances and stick to your budget so you don’t over spend and end up in debt.
3. Save for Retirement
It may be hard to think about retirement when it is so far away, but you have to think ahead for your future. Make sure you invest at least 10% of your income into a retirement fund that will keep you financially stable when you are in your later years.
4. SAVE, SAVE, SAVE!!!
Plan your budget so you always have enough to put some money away for savings. If you budget correctly you should always have at least a little to put aside for savings each month.
5. Invest!
Speak to a financial advisor and make sure you invest in smart markets. It is important to let your money grow in safe accounts that will build over time. This is also a good way to save for retirement.
6. Pay off debt
The best way to set a budget and stick to it is to make sure you pay off all f your debt. You may want to look into debt consolidation or if you have debt in collections, look into debt negotiation. Set up affordable payments and make sure to pay them so you can get yourself out of debt on and your way to financial freedom.
7. Create an emergency fund
This is also part of putting money aside and saving within your monthly budget. Part of what you put aside for savings should be set for an emergency fund. This will help you stay out of debt if you have unexpected bills come up.
8. Get rid of unnecessary expenses
When you sit down to set up your budget, make sure you go over your expenses and cut out anything you are over spending on or just don’t need. Maybe stop going out for coffee and make it at home!
9. Make sure to pay your bills on time or early
If you want to keep a strong credit score and achieve financial success you need to make sure you pay all of your bills early or on time. If you can’t pay in full right away make sure to pay at least a bit over your minimums so you can pay down your principal and your interest each month.
10. Differentiate between good debt and bad debt
Knowing the difference between good and bad debt will help you negotiate your way through purchases and keep your credit score up where you want it. It is important to know that credit cards and other high interest bills are bad debt and mortgages and other investments are good debt. Focusing on what you should be investing in and what will hurt you in the long run is important.