Getting our financial freedom is nothing less than a dream come true for most of us. But practically, only a few of us can achieve that success and modify our lives according to it.
So, if you want to be a financially strong person, the following key habits will help you pave the way.
1. Set goals in your life
You can’t get your financial freedom without setting some goals in your life. If you don’t have any aim in your life, being financially free would be worthless for you. So, what you have to do is:
1) Note down how much you intend to keep in your bank account.
2) Set up your lifestyle targets and decide at what age you must achieve those. The more specific your goals, the easier for you to achieve them.
3) Fix financial mileposts at regular intervals. Write down all of these points in a goal list and pin them near your workstation.
2. Prepare a budget
Prepare a monthly budget and make sure all of the unpaid bills are paid before due dates. It's the best way to ensure all your monthly debts are fully paid. It’s a monthly routine that protects your financial goals and removes any chances of disturbance.
3. Pay credit cards
Pay off credit card balances fully each month, and cancel any cards you aren’t using except old cards.
4. Create automatic savings
Enroll in your employer's retirement plan and get all the benefits they offer. Set up an automatic savings account for unexpected expenses. This would act as an emergency fund. Make sure the money must be deducted the same day you get your salary so that you don’t get your hands on it.
5. Check your credit
Your credit score will determine what interest rate will be offered to you when you apply for a new car loan or want to refinance your home loan. Credit score also affects things like car insurance or life insurance premiums. Your credit score is the proof of your past and present financial habits. This is why it’s important to check your credit report at regular intervals to ensure there are no bad patches affecting your good credit.
6. Negotiate price
People often become hesitant to negotiate the price for commodities and services; they think it’ll portray them in a negative light. If you can get out from this mental state, you can surely save thousands every year. Retail businesses tend to be open to negotiation, where buying in bulk or becoming a permanent customer can open the opportunity to good discounts.
7. Educate yourself
Review all applicable changes in the tax laws each year to ensure all adjustments and deductions are maximized. Educate yourself about current financial news and developments in the stock market. Don’t forget to adjust your investments according to the financial situation. As much you keep yourself up to date, there will be less chance for you to become a victim of sudden market fall or any catastrophe.
8. Take good care of assets
Take good care of your assets and properties, from cars to cell phones, from lawn mowers to shoes, and jewelry to utensils. Trust me they will last longer. Since the cost of maintenance is much lower than the cost of replacement, it’s an investment you don’t wanna miss.
9. Exercise and eat properly
Good exercise and good food can keep you healthy, sharp and away from any deadly diseases, and poor health may force earlier retirement with lower monthly income.