I’ve got something different for you guys today. I know you are excited. I don’t blame you. You should be. Today we are talking about money. “What?!?!?!?!” you exclaim. Allow me to explain:
When Lukus and I got married we got several amazing gifts (we’re spoiled) one of the most phenomenal has been the gift of financial planning. Yes, that’s right. We we’re given financial planning by a family friend. We will call her “Financial Guru” or FG for short. FG is a financial planner for many large estates, but she has taken us on as her charity case. This has been a serious gift because between school debt and some mismanaged credit cards in our wild youth- we needed direction. I am happy to report in a year and a half we have completely turned around our financial identity. Today we have a positive net worth, no credit card debt and are two years from paying off our credit card debt. All thanks to FG.
But this is not a gloating story! This is a story where FG shares her 5 keys to financial freedom with you:
1) Live Below Your Means. Yep, you read that correctly. Do not live at your means and certainly not above them. Give yourself space so that you are not living paycheck to paycheck. This allows for the other steps to be successfully enacted.
2) Build Liquidity. This refers to accruing savings. The goal is to have 3-6 months of living expenses that doesn’t get touched unless it is a serious emergency. After all, in these uncertain times who doesn’t want a cushion?
3) Avoid The Use Of Debt. Credit cards have their place. And most of us can’t buy homes with cash up front. But debt should be used sparingly and only when you have a repayment plan you can stick to.
4) Set Long Term Goals. This was the purpose of our meeting. Creating plans to get you through each financial step helps to put things in perspective. Plus when you have a plan it is a lot easier to stay on track.
5) Be Generous. As you accrue don’t forget to consider where else your money can be put to good use. It doesn’t take much to find a cause you can get behind. Besides, giving is so much better than getting. I promise!
Hope you found this info helpful!! Check out Mint.com for some great tools to help you on your financial path!
We now return you to North On Harper’s regularly scheduled programming….