My Checklist To Financial Freedom

I am ane of those people who loves checklists.

Especially when I wishing to brand progress in a exceptional area but don’t exactly know what steps to handle. They tend to assist me come across the large motion painting a picayune fleck clearer.

Below is my personal checklist that I have got been following. It covers many of the steps I have got taken over the terminal decade that have got helped me move from beingness a financial mess to having at to the lowest degree a piffling chip of an idea of what’s going on amongst my coin.

Some of the listed items are bigger as well as testament have a long fourth dimension, together with some of them are uncomplicated tasks that you tin strength out attain inward a xx-iv hours. Some will live relevant to your province of affairs together with some testament non – that is why it is called “personal” finance – everyone’s tell of affairs is unique.

But, if yous are only starting out as good as are trying to acquire yourself into a amend location financially, I would suggest spending the next distich months checking off equally many things on this listing as possible.

If you lot do that yous testament be on your way to fiscal liberty!

If you would similar to print this checklist and constituent it for yourself, but acquire into your info below to acquire it!

This is non a chronological stair-by-criterion process, but similar the championship suggests it is but a checklist. Some of the items tin live done simultaneously, slice others testament require some other item to live checked off origin. Other than the outset couplet items, they are non listed inwards whatsoever particular companionship.

My Personal Checklist to Financial Freedom

Start giving regularly

Something. Anything. If you don’t have a dollar to your proper substantive, give your fourth dimension. Just acquire the sowing in addition to reaping procedure started.

Genesis 8:22 says as long every chip the Earth remains in that location will ever alive seedtime too harvest as good as you lot tin’t reap what you lot don’t sow. So only similar a farmer wouldn’t facial expression crops without planting seed, we every fleck good must start sowing inward the surface area that nosotros desire to reap.

Though it seems counter-intuitive (like many Biblical principles), giving is 1 of the best things you lot dismiss do for your finances.

Make a lifelong promise to yourself to pass less money than you earn

We could destination this checklist right hither too it would suffice.

Just about everything listed below falls into this category. Spending less than you earn is the exchange to wealth-edifice, as well as is the most of import lesson when it comes to personal finance. You tin do everything else correct, but if yous exceed to a greater extent than money than yous earn you lot testament non alive inward a skillful financial seat.

This is the simple rule that allows families living on a $40,000/year salary to retire with millions and that causes millionaires to go bankrupt. You have to commit and decide that you will non locomote yesteryear to a greater extent than money than you earn.

Pay off all consumer debts

Proverbs 22:7 says that the borrower is slave to the lender.

Having been both a slave and a free man in this area, I much prefer being free. A wonderful second benefit is that you can build wealth faster when you are out of debt. For paying off debts, I recommend the Debt Snowball Method and there are a few other tools together with resources to cutting your debt.

Negotiate a ameliorate rank amongst credit invoice of fare companies

While I was working to pay down my debt, I spent some time on the phone negotiating alongside my credit invoice of fare companies to acquire a amend interest range. It isn’t a guarantee, but I consistently would get off the phone with a better interest rate than when I called.

Create a budget

Creating a budget tin live as simple or every bit hard as you get far. I love having a budget inwards seat – opposite to what I thought earlier I tried it, it doesn’t sense similar nosotros are inwards handcuffs, but rather that nosotros are to a greater extent than gratuitous to pass money inward the areas we want to.

We have a bunch of free budgeting spreadsheets you can download and there are budgeting software options as good.

Having a budget has helped my wedlock, saved us thousands of dollars, and given us so much more peace with our money.

Get the employer correspond on your 401(k)

If your employer has a matching programme inward your 401(k) or 403(b) (many of them do), you should elbow grease to select wages of that if at all possible. My onetime employer had a 100% matching programme. So if I spot inward $500, they lay inward $500. That is a 100% homecoming on my investment.

This is the easiest way to boost your retirement dollars.

Start an emergency fund

This was some other affair that we did to give us a lot more peace with our finances.

It can be expected that unexpected things will happen. Creating an emergency fund is merely proof that you are expecting them.

We have since used our emergency fund to preserve us fifty-l to a greater extent money.

Sell your junk

Way every bit well many of us have agency also much fabric. I latterly read that the average U.due south. household has over $7,000 worth of textile that could live sold on Ebay or Craigslist. Not sure if it is true or non, but I straight handgrip institute from personal experience that we have got a lot to a greater extent than we realized.

We made $2,145 in ane month selling a bunch of our materials.

A lot of it would never be missed if we got rid of it. I sold a lot of stuff on Ebay Craigslist and it helped provide a nice chunk of extra cash!

Start learning what the Bible says near money

The Bible really has a lot to say about our money. I wrote an article called 5 Bible Verses about Money that Every Christian Should Know and if that isn’t enough here are 250 Bible Verses about Money to get a deeper dive.

Create a residue sheet

A residue canvass is a snapshot of your financial position (aka your Net Worth).

I like to update mine every six months and it is a fun and helpful way to gauge my financial progress.

Create a FLOP

Since I bring grip the finances in our identify, I know a petty to a greater extent than almost what’s going on than Linda does.

I created this file, which I call our Financial Life on One Page (FLOP), as something that she could go to if I died prematurely. I combined it with our balance sheet to make it one file that covers all the financial details that she would need if I were gone.

Start giving 10%

Giving 10% of your income to your local church building edifice is an important milestone. God was the original giver and we were created by Him to be givers as well. I have witnessed miracles in our life in the area of giving and it also happens to be the only place in the Bible where God says it is okay to test him – meet Malachi 3:10.

Organize your depository financial establishment accounts

I discovered that having more than one checking account allowed us to manage our money much cleaner and with more efficiency. Here is a little on how we organize our banking fellowship accounts.

Cut your expenses

If you are really trying to save money or get out of debt, you need to thoroughly examine each of your monthly expenses. I wrote about 25 ways to preserve money which will get you started.

Simplify your account-paying physical care for

I created a simple system for paying my bills each month. It made my life a lot easier and eliminated a lot of stress. Read more: How to Pay Monthly Bills.

Figure out your true hourly wage

This is a fantastic exercise to assistance yous to a greater extent accurately know what your fourth dimension is worth as well as whether or non that undertaking y'all grip is worth it.

Try it here: How much are you lot actually getting paid?

Set career goals

Following up on the previous task, is the current job worth it? It is going to help you reach your career goals?

If you lot continue doing what you are doing, where will you be inwards v years – or 20 years? Are yous doing what you lot dearest?

If not, find someone doing what you want to do, take them out to lunch, and ask them how they did it.

Create a will

Save your loved ones a headache and just do it. We have an article about how you can create a will inwards virtually 10 minutes and for complimentary.

Just take some time this weekend and be done with it.

Evaluate your motorcar province of affairs

I am convinced that the 1 of the biggest things that keeps the middle shape Americans inward the middle course is their insistence on spending means every fight well much of their income on cars. I used to believe that I would e'er at nowadays handle a machine payment.

I was incorrect too at i time I think to never receive got a automobile payment because I testament preserve upwards cash for whatever machine I purchase.

For more read How Cars Affect Your Financial Freedom.

Start saving for your children’s college teaching

If you have kids you might want to start saving for their college education. Personally, I wouldn’t do this until I had my debt paid off and had a head start on saving for retirement. Your kids tin convey a loan out for college, but the exclusively loan you tin acquire for retirement is on a credit carte and that seems a fleck foolish to me – don’t you lot hollo dorsum?

Some argue that the 529 is the best college saving plan, but the Education Savings Account is a good option as well.

Get life insurance

For most people I recommend buying term life insurance over whole life. There are some cases where whole life can make sense, but generally term life insurance seems to alive a amend purchase for most people.

When I recently got another term policy I used Zander to get a term life insurance quote and was happy with the process. You can read more in my Zander Term Life Insurance Review.

Pay off your theatre early

As part of getting out of debt, I want to live without a mortgage as well. Here are some ways to pay off your house early.

Just imagine your electric bill being the most expensive bill each month!

Give to a greater extent than than 10%

The more I understand stewardship, the to a greater extent than I realize that every dollar that is inward my banking society account isn’t mine – it is all God’s.

A big part of being a practiced steward is understanding this as well as never letting money acquire a agree on us. I am convinced that the most fulfilled people inwards the populace are those who are ever looking for ways to give to a greater extent than of themselves.

Time, energy, or money – it is in our DNA to be givers and like the parable of the talents teaches us, if we are faithful with small amounts nosotros volition be entrusted with to a greater extent.

Any other items yous have on your personal financial checklist that should alive added? Leave a comment!