Image from jayperoni
Financial freedom is a goal we all want to achieve. After all, this is the epitome of how our life should be in the process. Plus, this can’t be realized overnight. As a teacher, we are fond of checking papers of our students. Then, might as well incorporate this activity in the financial aspect of my life. Hence, I am creating a very simple and personal financial freedom checklist.
But before we jump to my checklist, let us define what financial freedom really is. According to the site Rich Dad, financial freedom is much more than having money. It’s the freedom to be who you really are and do what you really want in life. If you want to be financially-free, you need to become a different person than you are today and let go of whatever has held you back in the past. It’s a process of growth, improvement and gaining spiritual and emotional strength to become the most powerful, happy, and successful “you” possible. That is the true reward of financial freedom.
Ramona Creel, even have the following bullets as to what financial freedom is and isn’t:
- financial independence doesn't mean living in the lap of luxury
- it has more to do with liberty from monetary worries
- financial freedom means no debt -- no credit card bills, car payment, or mortgage
- financial freedom means having a healthy nest egg saved away for emergencies
- financial freedom means keeping your expenses below your income
- financial freedom means developing a steady habit of saving and investing
- financial freedom means being frugal and deliberate about your spending choices
- financial freedom means that you don't have to work to pay the bills
Some of these items are pretty huge to begin with however this is something I would want to achieve in the span of 10 years. Why 10 years? Well, I just want to continue teaching by then. I don’t have any plans to retire since teaching is something that I love to do. But I want to tone down during this phase so I can be able to do the things I want and spend more time with individuals that matter like my family.
Hence, let me present my very personal financial freedom checklist. Some of the items are already completed.
1. Build my emergency fund
When I started my financial freedom journey, building your emergency fund is one thing that has been stated over and over again. This is your savings good enough to cover 6 months of your salary. I realize its importance and having one is but essential.
2. Get insurance
I really thought insurance is something for the old and dying. Never knew its importance even if you are young and kicking. Plus, you are covered with a huge amount in your paying period and even more your money compounds over the years hence getting more in the process.
3. Save regularly and no excuses
I want to be able to commit to savings regularly without excuses. This means that every month I would never fail to set aside a specific amount of my salary and allocate it for savings purposes.
4. Give regularly
Since I am geared towards saving regularly, I would want to be able to give as well. Since we are just a steward of our money, it is always best to share it with other people especially the less fortunate. Even more, it always is good to share especially with the many blessings we have.
5. Get out of debts
Ramona Creel said it that financial freedom means no debt -- no credit card bills, car payment or whatsoever. Hence, in order to be financially free, it is very important to not have debts. As much as possible, steer clear and eliminate bad debts. You can even build your wealth faster especially if you have no debts to pay. Plus, there are many other benefits you can reap such as financial peace and more savings.
6. Own A Property
All of my life, my family is always renting. We don’t have any property at all. That is why, it is part of my financial freedom checklist to own a property. You see, if there’s no more rent to pay, you can be able to save money. Plus, you don’t need to worry of someone to go to your house and collect the bills.
7. Living on Interest
Now this is something I would want to achieve. Not living on credit card interest but on investment interest. I want to have a good investment portfolio and in return would simply generate me the interest that I can withdraw anytime for my expenses. In this case, I don’t need to work long hours on teaching since I can be able to sustain my living expenses from my investment portfolio. Even more, I may opt not to work at all since my salary would just come from this investment pool. That would surely be one good life I must say.
So where am I now with my financial freedom checklist? I say 5 out of 7!
I know it is still a long way to go but at least I can be able to eliminate a few. Even more, I know for a fact that such checklist will continue to grow. How about you? What are some of your financial freedom checklist that can’t be found here?
P.S. To those doing the 52 Week Money Challenge and 52 Week Money Challenge Version 2, it is Week 40 already! Did you deposit the next amount yet?
P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too.
P.P.P.S I am launching my very first e-book tomorrow! Do watch out for it. You can see the teaser here.