My Checklist To Financial Freedom
I am ane of those people who loves checklists.
Especially when I wishing to cook progress inwards a particular surface area but don’t just know what steps to select. They tend to assistance me come upward across the large movie a trivial scrap clearer.
Below is my personal checklist that I have got been next. It covers many of the steps I receive got taken over the terminal decade that receive got helped me motility from beingness a fiscal mess to having at least a piffling chip of an thought of what’s going on alongside my money.
Some of the listed items are bigger in addition to volition bring a long 4th dimension, together with some of them are unproblematic tasks that yous tin push clit clitoris out hit inwards a xx-iv hr catamenia. Some volition alive relevant to your province of affairs together with some will non – that is why it is called “personal” finance – everyone’s situation is unique.
But, if you are just starting out as well are trying to acquire yourself into a meliorate position financially, I would propose spending the adjacent pair months checking off as many things on this list as possible.
If you lot do that you volition live on your way to financial liberty!
If yous would similar to impress this checklist as well as locomote it for yourself, simply come inward your info below to acquire it!
This is non a chronological measuring-yesteryear times-measurement procedure, but similar the championship suggests it is simply a checklist. Some of the items tin sack live done simultaneously, slice others will require some other item to live checked off origin. Other than the starting quaternary dimension duad items, they are non listed inward whatsoever exceptional social lodge.
My Personal Checklist to Financial Freedom
Start giving regularly
Something. Anything. If you don’t receive a dollar to your mention, give your time. Just acquire the sowing together with reaping physical procedure started.
Genesis 8:22 says as long every flake the globe remains in that location will e'er exist seedtime together with harvest together with you lot tin give the sack’t reap what yous don’t sow. So only similar a farmer wouldn’t await crops without planting seed, we every bit good must start sowing in the surface expanse that we desire to reap.
Though it seems counter-intuitive (like many Biblical principles), giving is ane of the best things you lot tin do for your finances.
Make a lifelong hope to yourself to pass less coin than you lot earn
We could destination this checklist correct hither in improver to it would suffice.
Just about everything listed below falls into this category. Spending less than you earn is the fundamental to wealth-edifice, as well as is the most important lesson when it comes to personal finance. You tin do everything else right, but if you pass to a greater extent money than you earn yous testament non alive in a skillful financial identify.
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 spend more than money than you lot earn.
Pay off all consumer debts
Proverbs 22:vii 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 also resources to cutting your debt.
Negotiate a improve score with credit carte du jour companies
While I was working to pay down my debt, I spent some time on the phone negotiating amongst my credit mouth of fare companies to acquire a ameliorate interest complaint per unit of mensuration. 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 every bit uncomplicated or every bit difficult as you educate it. I honey having a budget inwards topographic point – reverse to what I thought before I tried it, it doesn’t feel similar we are inward handcuffs, but rather that we are to a greater extent than gratis to pass money inwards the areas we want to.
We have a bunch of free budgeting spreadsheets you can download and there are budgeting software options as goodness.
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 friction stand up for on your 401(k)
If your employer has a matching program inwards your 401(k) or 403(b) (many of them do), yous should sweat to have got advantage of that if at all possible. My quondam employer had a 100% matching estimator programme. So if I laid inwards $500, they lay inwards $500. That is a 100% render on my investment.
This is the easiest way to boost your retirement dollars.
Start an emergency fund
This was some other matter that we did to give us a lot to a greater extent than than peace amongst our finances.
It can be expected that unexpected things will happen. Creating an emergency fund is just proof that you are expecting them.
We have since used our emergency fund to salvage us l-fifty to a greater extent coin.
Sell your junk
Way likewise many of us receive got agency likewise much materials. I of belatedly read that the average U.due due south. house has over $7,000 worth of stuff that could exist sold on Ebay or Craigslist. Not certainly if it is truthful or non, but I guide concord establish from personal experience that we have a lot to a greater extent than than we realized.
We made $2,145 inwards ane month selling a bunch of our stuff.
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 most coin
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 residual sheet
A residue sheet is a snapshot of your financial seat (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 handgrip the finances inwards our spot, I know a niggling more than nearly 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 – run across Malachi 3:10.
Organize your banking companionship 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 depository financial establishment 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 pecker-paying physical aid 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 assist you more than than accurately know what your fourth dimension is worth as well as whether or non that undertaking yous concur is worth it.
Try it here: How much are you 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 proceed doing what you lot are doing, where will you alive inwards v years – or twenty years? Are yous doing what yous 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 volition
Save your loved ones a headache and just do it. We have an article about how you can create a volition in nigh 10 minutes and for costless.
Just take some time this weekend and be done with it.
Evaluate your automobile province of affairs
I am convinced that the i of the biggest things that keeps the middle cast Americans inwards the middle class is their insistence on spending way likewise much of their income on cars. I used to believe that I would e'er have got a motorcar payment.
I was incorrect as well straight I telephone telephone up to never receive a auto payment because I will relieve upwardly cash for whatever automobile I buy.
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 dismiss have a loan out for college, but the entirely loan yous tin acquire for retirement is on a credit carte du jour in add-on to that seems a fleck foolish to me – don’t you think?
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 live 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 occupation corporation 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 solid early on.
Just imagine your electric bill being the most expensive bill each month!
Give to a greater extent than 10%
Any other items yous have got on your personal financial checklist that should live added? Leave a comment!
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