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First, let’s clarify what we mean when we say “financial freedom”. For purposes of this article, being financially free will mean freedom from the crushing weight of bad debt and the debilitating circumstances associated with debt. Being “free’ in this sense, means you will then have an opportunity to pursue wealth building.

Most of us were never taught anything about money outside of family and friends. Our family and friends may be really great people, but odds are their advice concerning money was gained from similar sources.

Over the last couple of generations many of us have grown up in one “era” with a certain philosophy, and lived as adults in another. For example, when I was a child we didn’t even have credit cards!  Imagine that!

We all know the havoc that can be caused by their abuse but we can’t blame the card!

Let’s get to the meat of things and begin with the (10) basic steps:

1. Take action! You must find out where you stand financially. Just because you are making all your minimum monthly payments does not mean you are financially healthy or stable. You must take the time to sit down and determine exactly what you have in assets and liabilities.
2. Pay off credit card debt. This type of debt is one of the worst. There again, you may never miss a payment, but just take the time to calculate what those “buy now pay later” purchases are really costing you. Pay these off ASAP, one at a time and apply that payment to the next credit card debt if applicable.
3. Determine what your needs are and distinguish them from your wants. Make your future purchases according to the difference. I know that’s not nearly as exciting but the goal is financial freedom!
4. Live on less than you earn. This is a throwback to my parents and maybe your grandparent’s time. It was considered at one time to be sound and wise financial advice. It still is! (It’s also what the rich do.)
5. Pay yourself first. Recommendations are 10% off the top for you. Set the amount aside and don’t touch it! There will more on this later.
6. Set financial goals. Spend some time constructing a specific plan to pay down debt and continue with a plan for budgeting, saving, investing, etc.
7. Educate yourself about money. Schools don’t teach it, most parents can’t teach it and your friends are probably in the same situation you are. When it comes to money, most of us don’t know that we don’t know.
8. Save and invest. This where the 10% you paid yourself first comes in. Savings and savings plans are not what they used to be for a host of reasons. Investing is not for the financially uneducated. Keep these facts in mind and make saving and investing a part of your financial education.
9. Protect your finances. This will again require education. Critical areas you must know about are insurance, lawsuit protection, taxes, etc.
10. Give back. As you continue on your journey to “financial freedom” remember those who are less fortunate and do not have the opportunities that you have, and some never will. There are always people that are in worse shape than us. Develop what is called an “attitude of gratitude”.

A good place to start for your financial education is books and materials by Robert Kiyosaki or Donald Trump. Both of these men are obviously highly qualified to teach, but more importantly they are committed to educating the general public about money.

Obviously, these (10) steps can not all be addressed and all corrective action taken overnight. It will take a period of time and you will need the counsel and assistance of professionals at some point.

The most important decision you can make concerning your financial freedom, right now, is to make the decision to become financially free.

My name is Gerrald Hendrix (Jerry). I am an internet entrepreneur
marketing wealth creation, education and management products and
services. I am one of a team of marketers teaching others how to be
successful in challenging times.For more information about me and
what I do, please visit my blog: GerraldHendrixBlog

Article Source:http://www.articlesbase.com/personal-finance-articles/10-basics-steps-in-your-journey-to-financial-freedom-1398105.html

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October 30th, 2009 | Category: Personal Finance | Comments Off
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