Financial freedom—having enough savings, investments, and cash on hand to afford the lifestyle you want for yourself and your family— is an important goal for many people. It also means growing a nest egg that will allow you to retire or pursue any career you want—without being driven by the need to earn a certain amount each year.
Unfortunately, too many people fall far short of financial freedom. Even without occasional financial emergencies, escalating debt due to overspending is a constant burden that keeps them from reaching their goals. When a major crisis—such as a hurricane, an earthquake, or a pandemic—completely disrupts all plans, additional holes in safety nets are revealed.
Trouble happens to nearly everyone, but these 12 habits can put you on the right path.
KEY TAKEAWAYS
- Set life goals—big and small, financial and lifestyle—and create a blueprint for achieving those goals.
- Make a budget to cover all your financial needs and stick to it.
- Pay off credit cards in full, carry as little debt as possible, and keep an eye on your credit score.
- Create automatic savings by setting up an emergency fund and contributing to your employer’s retirement plan.
- Take care of your belongings—maintenance is cheaper than replacement—but most importantly, take care of your health.
