Financial Freedom - Get a Solid Plan

October 14th, 2007 | Stacey | Debt Management, Debt Consolidation, Financial Independence, Financial Freedom Opportunities, Financial Freedom

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When you have a solid financial freedom plan, you can feel reassured that retirement will happen down the road. Retirement is not an age as much as a state of finances. To become financially free, you need to have enough money to pay your monthly expenses without holding a traditional job with hourly wages.

According to Ann-Marja Lander, a California certified financial planner, “Financial freedom is like waking up in the morning, brewing a pot of coffee and thinking about what you’d like to do – whether it’s volunteer work or taking voice lessons. Because whatever you do will be just fine, since you have the time and money.”

To get to this point takes dedication, a solid plan and some work. You need to save enough money to sustain your existence without working. Figure out how much money you need to live annually and multiply that by 20 so you can retire. When you do the math, you can develop a strategy and budget.

Another financial planner from California, Phil Cook, says, “A budget is about choosing the goals that are most important to you. If you need to save a certain amount every month to buy a home, putting that money away becomes a priority over running up your credit card or cell phone bill.”

Keep your credit cards to a minimum. It is better to refinance, knowing you will be in your home a long time, to pay less interest. If more than 36 percent of your income pays for housing and debts, you need to put your outstanding bills in order, which can be done through refinancing. According to deputy chief economist at Freddie Mac Frank Nothaft, “The longer you plan to be in your home and the larger your loan balance, the more it’ll make sense.” You can also call your credit card companies and request they lower the interest rate – it certainly cannot hurt to ask.

Once you save some money, make it work for you through investments or business opportunities. Making the money grow will make your financial freedom plan even more solid for the personal independence you crave.