Achieve Financial Freedom: 7 Steps for Financial Independence
Leisl L. Langevin, CFP®, CDFA®
Senior Vice President & Financial Advisor
As Americans celebrate Independence Day this July 4th, it's also a great time to think about achieving financial freedom. National Financial Freedom Day is on July 1st and it is a day dedicated to reminding you to take control of your finances. By following some simple steps, you can work towards becoming financially independent.
What is Financial Freedom?
Financial freedom means confidently living your life and doing the things you want and feeling empowered to do them because your finances are in order. It's about building wealth, eliminating debt, and having enough income streams to support your desired lifestyle. Achieving financial freedom takes discipline, planning, and smart money management.
7 Steps to Financial Independence
1. Track Your Spending
The first step is understanding where your money is going each month. Track every expense, big or small, over a period of 2-3 months using a budgeting app like Mint, YNAB, or PocketGuard. This will reveal wasteful spending patterns you can cut. There is a helpful rule of thumb that suggests you should spend 50% of your take home pay on needs like your mortgage, 30% on wants like shopping and vacations, and 20% on savings.
2. Pay Off All Debt
Make a plan to pay down or manage your debt, from credit cards to student loans to your mortgage. The less money going towards high-interest payments each month, the easier it is to save and invest for your future financial freedom.
3. Build An Emergency Fund
Life happens. Having a fully-funded emergency fund with 3-6 months worth of living expenses will prevent you from relying on high-interest debt when unexpected costs pop up.
4. Cut Unnecessary Expenses
Analyze your spending habits and cut out any unnecessary subscriptions, luxuries, and impulse purchases that don't align with your financial freedom goals and budget. Small lifestyle adjustments can equal huge savings over years.
read more below
get started on living well
Subscribe to the Fearless Flyer
Get the financial tips and insights you need to fearlessly pursue your goals, plus access to subscriber-only benefits like our Tax Resource Center and more.
5. Increase Your Income
Explore options to boost your income through a side hustle, earning passive income through investments, or finding a higher-paying job. The more you can earn, the faster you'll achieve financial independence.
6. Save & Invest Consistently
Make saving and investing a monthly priority, not an afterthought. Aim to save 20% of your income for retirement accounts and other investment vehicles that will compound your wealth over decades.
7. Develop Multiple Income Streams
Consider multiple jobs or sources of income. Develop multiple income streams through investments, side businesses, real estate, and other passive income opportunities.
Declare Your Financial Independence
Achieving complete financial freedom might seem impossible at first. By diligently following these steps, you'll make steady progress towards your money goals each year. Celebrate your journey by making this July 4th about declaring your financial independence! With discipline and smart planning, you too can live with absolute confidence.
Are you ready to finally break free from debt and achieve true financial independence? The WHZ collaborative experience synergizes a hyper-personalized financial plan with a custom-tailored portfolio that’s proactively managed to provide Absolute Confidence. Unwavering Partnership. For Life. We'll help analyze your current financial situation and create a personalized plan to pay off debt, increase income streams, and grow your wealth over time. To learn more, request a complimentary consultation on our website or call us at (860) 928-2341.
Authored by Senior Vice President, Financial Advisor Leisl L. Langevin, CFP® CDFA®. Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. 697 Pomfret Street, Pomfret Center, CT 06259 and 392-A Merrow Road, Tolland, CT 06084, 860.928.2341. http://www.whzwealth.com These materials are general in nature and do not address your specific situation. For your specific investment needs, please discuss your individual circumstances with your financial advisor. Weiss, Hale & Zahansky Strategic Wealth Advisors does not provide tax or legal advice, and nothing in the accompanying pages should be construed as specific tax or legal advice.
You & Your Money Podcast
Tune in for market updates and financial tips to help you Plan Well, Invest Well and Live Well.
WHZ on YouTube
Quick Tip videos designed to empower you to reach your financial life goals.