| Wouldn't it be nice to finally have enough money to | | | | 3. Use A Budget - Make a realistic budget and stick |
| do the things you've been dreaming about. Here are | | | | to it. Budget for a specific period of time - weekly, |
| 5 steps to show you how to have financial freedom | | | | biweekly, or monthly - according to your pay |
| and fulfill your dreams. | | | | schedule. Include the basics such as, food, mortgage |
| 1. Pay Down Debt - The best way to pay off | | | | or rent, property taxes, utilities, transportation, |
| existing debt is the snowball effect or avalanche. | | | | savings, debt payments, insurance, medical, clothing, |
| Mark off several columns on a piece of paper. In the | | | | entertainment, and other personal expenses. A |
| first column on the left, write the names of the | | | | budget allows you to see exactly where your hard |
| months, beginning with the upcoming month. At the | | | | earned money is going, enabling you to make smart |
| top of the next column, write the name of the | | | | choices about what you need and what you can do |
| creditor you want to pay off first. It may be the | | | | with out. |
| debt with the highest interest rate, or the earliest | | | | 4. Pay Yourself - Many people find it hard to put |
| pay-off date. List the monthly payment for that | | | | money away for themselves, after all the monthly |
| creditor until the loan is repaid. At the top of the | | | | bills are paid there isn't anything left to save. Pay |
| next column, record the name of the second creditor | | | | yourself first! A good amount would be 10% of your |
| you want to repay, and list the minimum payment | | | | income, but if you are working on paying down debt, |
| due each month. After you have paid off the first | | | | start with a smaller amount, then once your debt is |
| creditor, add the amount of that monthly payment | | | | paid off begin putting 20%, or more if you can, into |
| to your next creditors monthly payment, and so on, | | | | a savings account. It's also a good idea to have a |
| creating a major avalanche by the time you get to | | | | couple of different savings accounts, one for long |
| your last creditor. | | | | term or retirement, another for vacations, and one |
| 2. Avoid Debt - Spend less money than you make. | | | | for emergencies such as, car repairs, medical, or any |
| One of the most common debt traps people fall into | | | | other surprises that might come your way. |
| is making a purchase with a credit card thinking, "Oh, | | | | 5. Give To Charities - Giving is a need that all humans |
| I'll just pay with my next paycheck", then when their | | | | inherit from birth, it is the key to happiness in this life, |
| check comes, they find something else they would | | | | whether you choose to give time or money. Many of |
| rather spend the money on, so they only make the | | | | the trials we face in this life can be overcome by the |
| minimum monthly payment on their credit card. If you | | | | simple act of giving. If you decide to give money, be |
| don't have the money to buy the item you want | | | | sure to research the charity you're donating to and |
| now, save until you have the amount you need. | | | | make sure that it's legitimate and non-profit |
| Maybe after a couple of weeks you'll find you didn't | | | | organization. |
| really want the item after all. | | | | |