Before we get started on how we can achieve financial freedom we first need to understand what financial freedom really means to you. The definition of financial freedom varies from person to person yet every answer can be correct as well. Like for example do you define financial freedom as having your own place and cutting your financial assistance from your parents? Or you may define financial freedom as simply having the roof above your head and food on your plate? Or maybe you define financial freedom as never having to work ever again? Most of this answers can easily define financial freedom, since financial freedom can mean many different things to different individuals.
Many individuals especially people who live in America tend to live paycheck to paycheck where they also tend to have almost no money guaranteed in savings and the worst part is that they also have a lot of credit card debt as well. In order for them to start getting track financially, they need to first start with getting out of debt. Getting out of debt can be tough most especially if you are indeed living paycheck to paycheck, but with a slight change in your current lifestyle it can definitely work. The first thing you can do to start maximizing paying off your debt is to start with only buying things that you would need and not things that you would want. Try to create a new budget for your monthly finance seriously and make sure that your budget is based on your income and not on your expenses. Another good way to stop yourself from accumulating credit card debt is for you to stop using them, you need to remove that credit card from your wallet and start using cash or a debit card instead.
Before you can even pay your credit card debt or whatever debt you have and working to pay it down slowly but surely, you need to first start saving your very first starter emergency fund. Does not matter how big or small the amount is but it needs to be saved and not touched unless it is for emergency. A very important step after saving that starter emergency fund is that you need to now start opening the right accounts. Cash for retirement should be contributed to your 401 K while college savings need to be contributed in a 529 plan. Try to adjust your 401 k contribution at work in order for you to take advantage of all the freebie money of which the employer would provide you with. Bear in mind that the best return on your money is a no risk match on your 401k contribution so if your employer matches up to 3% then try to contribute only 3%. The next step is for you to start dealing with all the debts you have now that you have the right step of matching contribution to your 401k or open accounts. Start paying off the lowest debts first then continue with the largest. After dealing with your debts it is now time to increase retirement savings up to 10% to 20% of income. Make sure to start with your workplace 401k or if you do not have one then an IRA account are the next best method. By doing this steps you can more than likely achieve financial freedom, if you would like to learn more then try reading Financial Independence Books like Suzette Scott, they have a much diverse and intricate methods to achieve financial freedom.