EW56Bhttp://www.moneysense.ca/2011/09/06/11-steps-to-financial-freedomWH6PDFinancial freedomZ6EFP is on the minds of millions across America. Despite living in the prosperous nation of the world, many Americans continue to worry about their financial woes. Money is plentiful, but it never quite manages to find itself into many wallets and bank accounts. It’s obvious that those who live on the edge of bankruptcy don’t know the rules that govern wealth.
The education system does not require anyone to take obligatory courses in economics, even though money is a central part of everyday life. While many families struggle to make ends meet, there are simple rules that can be followed to increase wealth and happiness. None of that wealth requires finding it at the casino.
Save 10 percent of your income
It’s a simple enough rule, but so many insist it is impossible for them to save a part of their gross income. Everyone knows that having a financial goal is important, even if they can’t find the time to construct one. But this rule is easy to implement. The book, “The Richest Man in Babylon,” states that a part of everything you earn is yours to keep. You only need to make saving that 10 percent a habit. Once you do, you’ll find that you can live on the other 90 percent quite comfortably. If you can’t save that 10 percent, the next rule applies.
Eliminate unnecessary spending
If you take a closer look at your spending habits, you are likely to find a number of areas where you waste money. Cigarettes and alcohol take a good chunk of cash. You can eliminate the smokes and use alcohol for special events. The daily coffee, doughnut and morning paper burn a hole in your pocket. You don’t need to visit the deli for a roast beef sandwich when you can prepare your own lunch for work. It’s the small expenses that add up to a loss over the years.
Balance the checkbook
Once you have analyzed your income-to-expense ratio, you are likely to find that the expenses outweigh your income. Looking at financial data is a good way to let you know that things aren’t as rosy as you thought, and that if you continue down the same road, trouble will force you to make some sobering changes you won’t like.
Cut down on credit card use
The average family has upwards of 17 credit cards. That translates into a lot of buying power and an ultimate crash on the shoals of bankruptcy. Credit cards do have a purpose, such as emergency car repairs, but they are often used to make purchases of everyday items. Once the interest is factored in, those appliances and furniture cost a lot more than the sticker price. Advertisers and producers like nothing better than to appeal to your emotions to get you to buy.
Invest
Considering the interest rates paid in savings accounts and investments today, few people feel inclined to set any money aside to finance a future for the family. The dollar’s value has declined sharply in recent years, while in some nations of the world, the U.S. greenback has been replaced by alternate currencies. Bitcoin has become a cyber-currency that has no central banking system and is not subject to the manipulations of money that occur regularly in the banking system.
Financial freedom doesn’t come from a roll of the dice at the casino, and few ever strike it rich in the lottery. Only you can determine the best way to put your money to use. A financial expert can help you determine the steps you need to take to protect yourself from a declining dollar and have a safe financial future.