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How to Achieve Financial Freedom in Your Life

By Edited May 26, 2016 1 1

In today's world, more and more people are buried in debt that leaves any thoughts of financial freedom as just that, thoughts. Perhaps the term thoughts, should be changed to dreams. The dreams of the world are filled with pictures of happier times. There was enough money coming in to buy all of the things that were needed to live and even a little extra for a few of the wants. Debt is nonexistant in these dreams. The good news is that these dreams can become your reality. You can achieve financial freedom in your life if you want to.
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The key is that you need to want to make the changes in your life so that you do not feel weighed down by the thought of debt and where the money will come from each month. For what is dreams if you do not have the courage and desire to make them a reality. With that in mind, make the commitment to yourself now to do whatever it takes to achieve financial freedom.
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Step One
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Cut up all of your credit cards! This may seem like something that is only done on those TV shows where someone is tring to get out of debt. There is reason for that. When you have the plastic in your wallet, it is very tempting to spend money that you do not have to begin with. This is how people end up with thousands of dollars in credit card debt that they have no idea where it came from. Make sure that you have all of your credit card information and account numbers on a sheet of paper or bill so that you can still make payments on them.
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Step Two
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Determine exactly how much income is coming into your household on a monthly basis to achieve financial freedom. This should be your take home pay, the amount that you put into your bank account each month after everything is deducted from your paychecks. Remember to include any income from side hobbies or part time jobs to this total. Every penny counts and will set you free of the burden that you have been carrying with you for years.
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Step Three
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List all of the bills that you pay every month and the exact amount that you pay on them. This will be everything from your mortgage or rent to your cable bill. You can list all of your minimum payments for your debts separately for this step. These are bills that are owed every month no matter what. To achieve financial freedom, it is a good idea to see if you can reduce these bills.
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Step Four
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Take the bills from step three and examine each one carefully to see how much you can really cut down on them. Scale back on the cable package or cell phone bill plan that you have. You may even want to go without cable all together. If you have both a cell phone and a land line, get rid of one of them to save money. It is all in seeing the opportunities that are right there on paper for you to find.
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Step Five
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Take the new amount of your monthly bills that you have minimized and subtract it from your total amount that you have in your take home pay. This is the amount that you have to work with when it comes to your other spending and your debt repayment strategy. If by looking at this number, you know that it is not nearly enough to even cover food and gas for the month, then it may be time to think about bringing in more income each month.
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Step Six
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Determine a legitimate amount of money to be spent on food and gas each week and then add it up to make the monthly totals. Remember to achieve financial freedom, you are going to need to cut back in this area. All meals need to be prepared at home. Grocery shopping should be done once a week to save money. Only drive the car when absolutely necessary. These are all small things that you can do to cut back on your spending.
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Step Seven
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Factor in other minor expenses like animal care, doctors appointments, and other expenses that were not covered by the previous steps. Subtract this and the amount from step six to get a total of what you are going to put towards your debt repayment plan. Debt repayment needs to be one of the driving factors in this plan to achieve financial freedom.
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Step Eight
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Take the list of all the minimum payments and subtract each amount the money that you have for your debt repayment plan. You need to make at least the minimum payment on all of your accounts as you go through your journey. The remaining balance of money that you have needs to be put towards your debt with the highest interest rate. This will pay this bill off the fastest. This is important because it will save you a lot of money on intererst, which will help you to achieve financial freedom.
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Step Nine
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When that debt is paid off take all of the money each month that you were paying towards it and put it toward the next bill with the highest interest rate. Continue on this step until all of your debt is paid off. Now you are beginning to see how to achieve financial freedom.
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Step Ten
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To achieve financial freedom, paying off debt is the first huge step. It is not the only thing that you need to do. The next step is to build a savings account to weather any crisis that may come into your life that may need more money then is in your monthly budget. It always happens when you least expect it. The car dies or a surgery is needed. Wouldn't it be nice to be prepared? That is why the final step to achieve financial freedom is to take all the money that you used each month to repay your debt and put it into a high interest savings account.
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Comments

Jan 13, 2010 4:45pm
simpleprocedures1
Very nice informations. thanks.
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