Preparing yourself for financial freedom

financial advisor with young family

Creating the financial future you’ve always dreamed of is not as difficult as you’ve been led to believe. It will require some discipline and lifestyle adjustments, but it can be accomplished by those who are committed and willing to make changes. This is where the average U.S. consumer needs to begin getting your financial big picture into shape.

Consolidate Smaller Loans into One Single Loan

This step is the practical first step that is the best one to take if you can swing it. There are three major benefits to this process that make it well worth completing.

  1. It pays off several smaller loans. They are finished and you are free and clear of those obligations.
  2. You’ve whittled down several monthly payments to keep with into one single payment.
  3. You’ve eliminated countless hundreds if not thousands of dollars in interest.

Paying out less money over the life of the loan should be incentive enough. The other two simply make it more convenient to repay your debt and maintain or rebuild your credit rating.

Create a Budget

Now it’s time to explore your income verses your outflow each month and establish a budget you can live with. If you’re married, you’ll need to work with your spouse to establish priorities in spending and identify expenses you can live without. It’s important to have a budget that not only allows you to live within your means, but also to enjoy the occasional splurge while saving money for rainy days and retirement.

Change Your Spending Habits

This is the hardest part for most people. We live in a consumer driven society. Do you really need 10 gigs of data on your mobile phone plan or can you rely on Wi-Fi more frequently? Can you limit your afternoon latte to one day a week? How much money can you save by reducing meals eaten out to once or even twice a month? What monthly expenses can you eliminate completely? Cable, movie rentals, pedicures? These expenses add up if you’re not careful.

Consult with a Financial Planner

Seeking financial advice and guidance from someone trained and qualified to look at your current financial situation and offer practical advice for saving, paying taxes, and building a nest egg for the future can help you get on the same page while getting your financial affairs in order – with an eye on tomorrow. The earlier in life you get your financial affairs in order and start looking at the big picture, the more comfortably you will be able to retire. These tips will help you get started on the right path. All you have to do is commit to following them.

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