Good Habits for financial freedom

01 Sep 2020

The road to financial freedom is every person’s goal from the day they start their first job. From having a nice house, to paying for your children’s education through to a comfortable retirement. Unfortunately, this prize goal is often cast aside as life happens. Unforeseen expenses, rising debt and overspending often take precedence over planning for financial freedom.

With so many obstacles to overcome in a struggling global economy with rising costs of living, how can we stay on the path to achieving financial freedom? 

Forming these habits should help you on your way.

Set Life goals – You first need to define what financial freedom is to you. Get specific and write down how much you want in your bank account and the lifestyle you want, and at what age you want it. Break up your goal into smaller parts and set milestones dates to achieve them by. Regular smaller goals are easier to achieve and don’t seem so far away.

Make a budget – Budgeting is the key to achieving your goals. It helps you keep track of your expenses and focuses on the end goal.

Pay off credit cards in full – Credit card interest rates are very high and are poison to wealth building. Try to pay off the full balance every month. Credit cards should be used for emergencies or special purchases and not for living expenses.

Create automatic savings – take advantage of company retirement funds and employer contribution matches. Pay yourself first and set direct debits on the day you receive your salary for savings and emergency funds. This way the money doesn’t touch your hands and you can’t be tempted to spend it.

Start investing now – Compound interest is still the best way to grow your money. Even a small amount invested in diversified funds will reap rewards over time.

Watch your credit – your credit score determines interest rates on mortgages and vehicle financing and even insurance sometimes. The better your credit score the better interest rates you get which could save you thousands annually.

Negotiate – Negotiate on goods and services provided. Bulk or repeat buying in certain stores could reduce prices. Shop around for the best service providers and prices. It’s not being cheap, it’s saving money, potentially thousands annually that could be used for investment contributions.

Continuous education – Get clued up on the markets and keep track of financial news. Knowledge is your best weapon against bad returns. Although you have a financial adviser, you need to know what you are invested in and how they are performing. Ask questions.

Proper maintenance – Maintaining your property and vehicles on a regular basis keeps them in good order. The cost of maintenance is cheaper than the cost of replacement. This could save you thousands. 

Live below your means - It’s not a case of living on coupons and bargain hunting. It’s a case of distinguishing between the things you need and the things you want. This is a good financial habit to adopt and could save you money throughout your life.

Take care of your health – Maintaining your body is important. Have regular check-ups to prevent chronic conditions. Also maintaining a balanced lifestyle of exercise and healthy eating habits could save you a fortune in medical costs when you get older.

Get a financial adviser – This is probably the most important habit to adopt. Throughout your lifetime, you will have amounted a certain amount of wealth through savings and investments. 

Your deVere Acuma financial adviser will travel your journey with you, so ensure that they have the expertise and knowledge to help you make the best decisions to grow your wealth. – (some info taken from Investopedia) [email protected]

Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere Acuma adviser for a personal consultation.

* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.