Here are 4 tips to financial freedom that will make you more mindful about your money.
1) Determine Your Net Worth
If you don’t know your net worth, you can work with an accountant or a financial planner to calculate it or use any of the free tools available on the internet. Knowing your net worth will give you a baseline for where you currently are.
2) Determine How Much You Need to Retire
Calculate what your financial needs will be when and if you retire.
Be aware that retirement, by its very nature, requires that you have financial independence. A good financial planner can tell you how much in savings and investments would be required to produce enough in interest, dividend, rental, and royalty income to live your current or future lifestyle without having to work.
Financial freedom frees you up to pursue your passions, travel, engage in philanthropic endeavors and service projects—or do whatever else you might wish.
3) Become Aware of What You’re Spending
Most people aren’t aware of what they really spend in a month. This is a very important step to developing a millionaire mindset.
If you’ve never tracked your expenditures, start with these steps:
- Write down all your normal fixed monthly expenses such as your mortgage or rent, car payment, any other installment or loan payments, insurance bills, cable bill, Internet provider, health club membership, and so on.
- Go back over the last 6 to 12 months and calculate average monthly expenditures that fluctuate—utilities, phone bills, food bills, clothing expenditures, automobile maintenance, medical expenses, and so on.
- Keep a record for 1 month of everything you spend money on during that month, no matter how big or small—from gas for your car to coffee at Starbucks.
- Add up everything at the end of the month so that you are consciously aware—rather than unaware—of what you’re spending.
4) Become Financially Literate
Not only should you stay conscious around money by reviewing your financial goals every day and tracking your spending every month, but I recommend that you also proactively learn about money and investing by reading at least one good financial book every month for the next year.
Go online and do some research on books that will teach you about money and help improve your financial literacy. Commit to reading at least one of them this month.
Jack Canfield, America's #1 Success Coach, is founder of the billion-dollar book brand Chicken Soup for the Soul©Inspirational Books)© and a leading authority on Peak Performance and Life Success. If you're ready to jump-start your life, make more money, and have more fun and joy in all that you do, get FREE success tips from Jack Canfield now at: www.FreeSuccessStrategies.com/.