A Second Chance at Financial Freedom

Good morning everyone. Today’s post is the next topic in my “A Second Chance” series.  This series is all about improving certain aspects of your life and righting any wrongs; A Second Chance is a do-over for some aspect in your life that you want to correct or change.  Personal Finance is also one of the topics discussed in my upcoming book “A Better You” which is expected to be finished later this year. We don’t have to be the best, but we can be better. So keep reading and find out how to find financial freedom.

Almost everyone has experienced financial difficulties at some point in their life.  Whether you are a struggling student who lives on a budget, a single parent who is trying to do the best for your kids, or you are a young professional who is struggling to pay off your debts; the truth is that almost everyone can improve some aspect of their financial lives. Maybe you want to save more money each month, maybe you want to pay off your debts as quick as possible, or maybe you want to increase your monthly income.  Improving your financial situation doesn’t take much, but it does take dedication.

4 Easy Steps for Financial Freedom

1. Recognize the problem.  As with any personal problem the first step towards improving your financial situation is to recognize that there is a problem. If you are having difficulties making your monthly debt payments you have to realize that you can no longer afford your current lifestyle and pay off your debts at the same time. Making cuts in your monthly spending, allocating a larger percentage of your income towards debt repayment, or finding ways to increase your monthly income will all help you pay down your debts sooner and achieve financial freedom.

2. Find out how you got there.  Maybe you are in debt because you live beyond your means on a monthly basis, maybe you are in debt because you are a compulsive spender, or maybe you are in debt because you loaned a family member (or friend) money and they have yet to pay it back. Before you can achieve financial freedom you have to make the conscious decision to learn from your mistakes so that you don’t repeat them in the future.

3. Make an action plan. If your financial goal is to save more money each month you will have to make an action plan to achieve your financial goal which includes setting a target date, making a personal budget to determine how much money you can afford to save each month, as well as possibly determining where you can make cuts in your monthly spending so that you can save more money each month. Having an action plan with a defined goal and the necessary steps to take towards achieving the goal will make our dream a reality and our goal attainable.

4. Check in on your action plan regularly. There is really no point in making an action plan if you don’t check in on your plan regularly to make sure that you are staying on track towards achieving your goal. It is a good idea to break down your ultimate goal into smaller goals because as you achieve your short term goals you will be motivated to continue working towards your ultimate goal. It’s also a good idea to check in on your action plan on a biweekly or monthly basis to make sure that you are still on the right track towards changing your financial habits and achieving financial freedom.

What is your secret for financial freedom? Tell me on Twitter @TKBlogs.

Love Always,

This post was originally published on Credit Karma

Photo by borman

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17 thoughts on “A Second Chance at Financial Freedom

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  8. I am totally agree on the point #3, #4 – Plan action and take action. But this is the area where I always stuck. Nice write up!

    -http://herweightlossdiary.blogspot.com

  9. Great stuff! I could certainly organize my financial life a little better. You’ve inspired me to work on that this week–it’s not really the fun stuff, but I suppose I can make it fun. Ah–I think I’ve hit upon something! If you start to make the experience more pleasurable, it won’t be such a chore.

  10. I want to be able to buy a new house in the next few years. We are struggling to get out from under some credit card/school related debt. I try not to spend money unless we absolutely have to. My husband and I are both due (small) raises in the next month. I am going to pretend we didn’t get them and stash that extra amount away.

  11. Great post! I think #2 is something a lot of people forget. It’s easy to say “I want to pay off my debt!”, not so easy to examine the root cause of said debt. That’s an issue I have. I’m a big fan of the fingers-in-my-ears-singing-la-la-la approach!

    I love #4 as well. It’s really important to examine your plan to make sure it is working and even more important to celebrate the small successes. Reaching my mini goals keeps me motivated to keep fighting the Debt Monster! Looking forward to the day that battle is over and I can move onto the next demon — investing. So. Many. Acronyms.

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