3 Simple Financial Freedom Rules

Many think financial freedom is something that cannot be achieved. This belief is so deep the whole concept of being financially free simply feels like an illusion. Most have totally given up on the idea and the phrase ‘financial freedom’ is not even in their vocabulary! Achieving financial freedom by following three simple rules will put you on the road to financial stability.

Rule Number 1: Never Live Above Your Means

Living above your means is one of the main reasons many never realize financial stability. Living above your means indicates you are spending more than you are earning. In the long run, you could end up dead broke; no savings and you are most likely living paycheck to paycheck. Try and live below your means. Look at what you are spending money on. Some of life’s luxuries you are indulging in can probably be eliminated. Look closely at what you are spending money on and figure out what you can get rid of yet still live comfortably. For example, are you using Uber, other ride-share apps or taxicabs excessively? Perhaps you can look at public transportation or carpool options. Have you considered walking or even biking? You could realize significant savings. Creating a budget is the best way to see where your money is going.

Rule Number 2: Save and Invest Whatever Remains

Once you have identified where you can eliminate or greatly reduce spending, take those funds and invest them—no matter the amount! There are various saving options offered by banks, such as interest-bearing accounts. An interest-bearing account, e.g., certificates of deposit (CDs), is one in which the bank pays you interest (money) based on a percentage of your account balance. Take a good look at your banking institution to see if they offer these types of accounts. Saving is one of the wisest things one can do. It is important to think of the future and not just today. Look for a savings arrangement you can live with and start now to grow your money.

Rule Number 3: Continuously Improve on Rules 1 and 2

It is easy for one to plan to save or minimize his or her expenses. The problem is after a few months or so, old habits return. Make sure you don’t fall into this trap. Keep looking at ways to reduce your spending and increase your savings weekly. If you need help, Google search articles or books about money and you can always reach out and talk to a financial professional.