4 Steps Towards Financial Independence

Most American’s have been put to the test financially over the past 18 months. Whether it be having to rely on the unemployment insurance system, rental/housing assistance, or stimulus checks, many relied on receiving one of the above just to make ends meet. Those with financial freedom did not have to bear that burden.

Financial freedom is a journey. Here are a few tips to begin your discovering your freedom today.

1. It’s Not What You Make, It's What You Save

The first step in becoming financially free is taking a look at your finances. Determining your monthly income is a great start. Next, find out your fixed expenses (rent, mortgage, insurance, phone bill, etc.). Fixed expenses are constant and consistent. Rarely does the amount deviate from month to month. Deduct your fixed expenses from your monthly income and begin to save whatever extra you reasonably can. We recommend putting back at least 20% of the money you bring in after fixed expenses are deducted.

2. Invest, Invest, Invest

Traditionally, investing was only thought to be for the "wealthy".  Times have changed and investing has become more mainstream across the board for all age groups. Starting an IRA or brokerage account can be done in a matter of minutes with a simple app, such as those offered by Charles Schwab, Fidelity, and even a cult favorite like Robinhood.

3. Retirement IS For The Young

One of the biggest misconceptions is that saving for retirement is an old man’s game. That someone in their 20s-30s doesn't need to start saving yet. Truth is, the younger you start planning for retirement the younger you CAN retire and enjoy a life of freedom. Whether you are self-employed or work for a Fortune 500, it is never too early to start weighing what options suit you best or what your employer may offer in terms of a retirement plan. Sit down with an advisor and see what is your best plan of action.

4. Don't Drown in Debt

One of the biggest factors in becoming financially free is erasing debt. Drowning in debt can be crippling and the ripples can be felt in all aspects of your life. Determine how much debt you are in and what is the source of the debt (credit cards, loans, etc.). If you feel you are unable to make the necessary payments, reach out to card issuers and loan providers in an effort to work out a payment plan. Doing so will ease the feeling of being overwhelmed and help get you on a schedule.