Perhaps you dream of waking up by the sea on a beautiful piece of land you own, surrounded by nature and with no internet, because you will never have to work again.
Or maybe you dream of waking up somewhere other than your nursery without your parents making you find a job and move out because you are 35 years old.
Financial freedom can mean different things to everyone, but it keeps coming back to this: What drives you to get up and go to work?
We’re not just talking about yours jobWe talk about everything you can do to meet your financial freedom goals – improving your credit score so you can buy a home for your family; Pay off your debt so you can get rid of the fear on your chest. Finally take that leap to invest and build your retirement fund.
Whatever your vision of financial freedom, we’ve put together the five steps that can help you get there.
1. Add up to 300 points to your credit score
If your vision of financial freedom is to own a home, lease a car, or just open a credit card on your behalf, you know that good credit is an important part of getting there.
When it comes to your credit score, staying organized and on top of things is important. After all, it plays an essential role in any big purchase you want to make – and could save you thousands.
So, if you’re looking to get your credit back going – or even if it’s on the right track and you want to improve it – try a free website called Credit Sesame.
Within two minutes, you’ll have access to your credit history, all debtor accounts, and a handful of personalized tips to improve your credit score. You can even spot bugs that are holding you back (every fifth report has one).
Atlanta-based James Cooper used Credit Sesame to add nearly 300 points to his credit rating in six months. *** “They showed me the pros and cons – how to puncture the me and cross the T,” he said.
Would you like to check it out yourself? It’s free and only takes about 90 seconds to sign up.
2. Stop paying your credit card company
If you have credit card debt, You know. The fear, the interest rates, the fear that you will never escape … if you break out of this debt, this could be your version of financial freedom.
And the truth is, your credit card company doesn’t really care. It only gets rich by fooling you on high interest rates. But a website called AmOne wants to help.
If you owe your credit card company $ 50,000 or less, AmOne compares you to a low-interest loan that can be used to pay back every single one of your balances.
The advantage? You have to pay an invoice every month. And because personal loans have lower interest rates (AmOne rates start at 3.49% APR), you will be out of debt The much faster. Plus: No credit card payments this month.
AmOne keeps your information confidential and secure, which is why after 20 years in business it probably still has an A + rating from the Better Business Bureau.
It takes two minutes to see if you qualify for up to $ 50,000 online. You need to give AmOne a real phone number to qualify, but don’t worry – they won’t spam you with phone calls.
3. Invest and Save for Retirement: Get up to $ 200 in bonus shares from this company
Investing can seem overwhelming if you’ve never done it before. But to get financial freedom, ditching your money and making pennies may not get you there.
If you feel that you don’t have enough money to invest, you are not alone. But guess what? You really don’t need that much – and you can even get free shares (worth up to $ 200!) If you know where to look.
Whether you have $ 5, $ 100, or $ 800 left, Robinhood is your investment.
Yes, you’ve probably heard of Robinhood. Both beginners and professionals love it because it has no commission fees and you can buy and sell stocks for free – with no limits. Plus, it’s super easy to use.
What is the best? When you download the app and top up your account (it doesn’t take more than a few minutes), Robinhood will put some of the free shares in your account. It’s random, however, so stocks can be valued between $ 2.50 and $ 200 – a nice boost to help you build your investments.
4. Set aside millions for the future of your family
Have you thought about how your family would do without your income after your death? Chances are, your checking account balance won’t last forever. And if your dream of financial freedom includes your children’s financial freedom, then you need to prepare for that future in case it comes too soon.
Here’s the thing: you should keep a healthy amount of savings in the bank, but if you want to give up to $ 1 million to your family, use what is known as term life insurance.
We recommend a company like Bestow. Perhaps you’ve considered this before, but thought it was only for the rich or the elderly. But we hear people can get it for only $ 16 a month.
You can use Bestow until you are 54, but the sooner you deal with it, the cheaper it could be.
You don’t even have to leave your home to get a free quote from Bestow – it takes minutes. Instead of leaving your family with what’s in your checking account and a bucket of worries, they can afford the life you always wanted them to have.
5. Become a better saver and grow your money faster – without risk
While investing can be a rewarding way to achieve your financial goals, smart saving shouldn’t be ignored either. Find a place to keep your money safe – but make sure it is still making money.
You won’t get anything under your mattress or in a safe. And a typical savings account doesn’t do much better. (Um, 0.06% is nothing these days.)
However, with a debit card called Aspiration, you can earn up to 5% cashback and up to 16 times the average interest on the money in your account.
Not too shabby!
Enter your email address here to receive a free Aspiration Spend and Save account. After you’ve verified your email address, securely link your bank account so you can get extra cash. Their money is FDIC insured and they use military grade encryption which is nerd-talk for “this is perfectly safe”.
6. Quit your job and earn up to $ 69 an hour as a small business owner
Perhaps your version of financial freedom will work for itself and earn more income. Have you thought about how to do that?
Can you open an excel spreadsheet? Does it sound appealing to make $ 69 an hour? How about the freedom to work remotely and help others succeed?
Those are the benefits of working as an accountant, says Ben Robinson, CPA and business owner who teaches others how to become virtual accountants through online courses called Bookkeepers.com.
You don’t have to be an accountant or really good at math to succeed in this business. All you need is a good computer literacy and a passion to help business owners tackle real-world problems. The ability to stay moderately organized is also helpful.
According to Intuit, inventor of QuickBooks, you can make up to $ 69 an hour and you don’t have to commute. It’s a great opportunity for parents looking for a part-time job, recent college graduates, or anyone looking to make real money from home.
Robinson shares in his free class at Bookkeepers.com what it takes to be a virtual accountant and tips on how to make this career a success for you. If you stick to the lessons you could be running your own business in a few months.
7. Cut down on your expenses and save hundreds
No matter what your dream of financial freedom is, when you have more money in your pocket you can get there. And there are likely to be bills that you pay every month that you could cut down drastically.
For example – when was the last time you checked car insurance prices?
You should shop for your options roughly every six months – this could save you serious money. But let’s be real. It probably isn’t the first thing you think about when you wake up. This need not be.
A website called Insure.com makes it super easy to compare car insurance prices. All you have to do is enter your zip code and age and it will show you your options.
Insure.com saved an average of $ 489 per year.
Yup. That could be $ 500 in your pocket just to take a few minutes to consider your options.
8. Make a budget – and stick with it
The only job of creating a budget and actually sticking to it can be someone’s idea of financial freedom. Know where your money is at all times and feel safe for every dollar you spend.
And even if it’s not part of your dream, regardless of your goals, having a budget to stick to will help you prepare for financial success.
We recommend the 50/30/20 method. It’s simple but effective and has some cult following too! Here’s how it shakes out:
50% of your monthly takeaway income covers your fixed costs – rent, utilities, groceries, minimum debt payments, etc. To travel). After all, the last 20% of your monthly income is devoted to your financial goals.
Kari Faber works for The Penny Hoarder.
*** As with Cooper, 60% of Credit Sesame members see an increase in their credit score. 50% see an increase of at least 10 points and 20% see an increase of at least 50 points after 180 days.
Credit Sesame does not guarantee any of these results, and some may even see a decline in their creditworthiness. Any improvement in score is the result of many factors including paying bills on time, keeping your balance low, avoiding unnecessary inquiries, proper financial planning, and developing better credit habits.