WHERE TO START ON THE ROAD TO FINANCIAL FREEDOM? BUILD A NETWORK OF FINANCIAL TOOLS.

Savings — Budget — Investing — Income — Debt Knowing where to start when working towards financial freedom isn’t easy.  Should you start by assessing your budget and keeping track of how you’re spending money each week? Maybe it’s best to pay off your debt first? Or should you start investing any extra cash you can scrounge up, even if it’s $50 dollars? Maybe it’s better to work on increasing your skillset and therefore income?  Yes. Yes to all of them.   All of these things are important…and eventually you’ll want to employ each of them to help improve your financial situation. The goal is to have a system for your finances up and running where you utilize each of these areas to avoid living paycheck to paycheck, and one day, avoid having to work for someone else altogether if you choose. One of these areas alone will not likely be enough; unless you win the lottery, inherit a family fortune, or happen to have a skillset that makes so much money you can overpower a lack of discipline in the other areas. If that’s you, congratulations, just don’t lose it. But for the rest of us…I promote thinking of our finances as a network of financial tools we must maintain for a healthy life.

MANY HANDS MAKE LIGHT WORK…

The body is made up of 11 different systems (muscular, skeletal, circulatory, nervous, digestive, urinary, respiratory, etc)…imagine the difficulties one encounters if any single area is not working properly. The same can apply to our money. Establishing a network of financial tools fosters wealth accumulation and helps to protect against the mistakes we’re certain to make along the way, each system working to support the other so they can all function as efficiently as possible. Some people may do best attempting to perfect one area of their finances and then move on to the next. Personally, I think it can be hard to see real success until we have at least a little control of all of them. I’ve known people make more and more income and still find themselves living paycheck to paycheck, or broke due to their spending. Others have learned to control their spending, but if they’re not investing or growing their income, they are limiting their wealth potential.

ONE SIMPLE TRUTH.

Improving our finances is something I believe any of us can do. It does take effort and it takes time. But like most things in life, persistence pays off. Money will not fix all of our problems. But currently I’m thinking I prefer the stresses that come with not needing money. If you’re reading this blog, I’m guessing you’re similar, but no promises. Most importantly, money can give us options. And having options is always better than being forced to do something.

THE NOT-TOO-DISTANT FUTURE.

How would your life change if you didn’t have to worry about going back to a job you weren’t interested in? Imagine the feeling of not having to worry about choosing between fixing your car or paying rent? What if you could afford to set your own schedule and pursue the things that really feel rewarding to you? Too many of us rely on others to handle our money, but the sooner you take control, the quicker your path to financial independence can be. You don’t have to be a financial advisor to succeed (although some of them would probably prefer you think that). I strongly believe in seeking all the knowledge and advice I can to manage my money.  But the more aware we are when it comes to our financial situation and the way money works, the sooner we’ll learn when someone is trying to relieve us of our money, or actually trying to help us multiply it.

A YEAR FROM NOW YOU’LL WISH YOU STARTED TODAY.

Start building your network of financial tools today. Take a look at your accounts to get a better idea of your savings and budgets. Explore different investments so your money can work to create more, even while you’re relaxing. Start brainstorming ways to increase your income at your job or find hobbies to monetize. The sooner you get your financial network up and running, the greater the rewards you’ll get from it. Too often I put off doing something so I could prepare more or wait for some sort of “better” situation I imagined in my head. But time is our greatest asset and a finite resource, everything else can be modified as we go. Leave a comment below about a financial area you are focusing on or a goal you achieved and what’s next for you. We can all benefit from each other’s experiences and tips.