Achieving Financial Independence

RICHARD HOROWITZ

In a difficult economy, achieving financial independence canseem like a far off dream that will never be attained.

But with careful planning, self-discipline, and commitmentachieving financial independence can be within your grasp!

Goals and Commitment

What does financial independence look like to you?Does that mean having zero credit card debt?

Having all your vehicles paid off? Paying off your mortgage?What do you want to achieve with financial independence?

It’s time to set your financial goals.

These are all questions you need to ask yourself and, if you are married, your spouse.You need to work together to decide what goal you want to achieve.

Once you’ve decided on your financial goals you need tobe fully committed. It is going to take sacrifice, work,

and patience.You have to be willing to make changes in your spending

habits to truly become financially independent.

CREDIT CARD

Track Your Spending

This step can sometimes be thehardest, but it is one of the most

important. Begin tracking all yourspending – cash, credit cards, and

debit cards – for one month orlonger. You aren’t going to knowwhere to begin saving unless you

know exactly where you are spendingyour money. This is going to be

harder than it sounds. You need toaccount for every last penny,

including your morning latte.

BUDGET

Look at how you are spending your money. Red flag anything that is not a ‘need’ forcutback or elimination. This could include items like eating out, gym memberships,

and magazine subscriptions. If you are having a hard time with this part of thefinancial transformation process, remind yourself of your long-term goal –

financial independence.

SAVING

Creating options – You can travel, change jobs, and pursue your life goals.Building frugality – Being frugal forces you to focus on what your real needs and wants are. Youwill find that you fix your clothing rather than replace it, do your own home maintenance, and

cook more of your own meals.Building security – You know that you can handle unexpected expenses. You will also have peace of

mind knowing that you are not being crushed under debt.

Saving brings independence by:

Starting your journey to financial independence can start as soon as you are ready tocommit. It is worth the work and effort to know that you and your family are

financially able to achieve your goals!