Financial Freedom Series - Part 5: Good Habits To Help You Reach Financial Freedom

1. Set Life Goals

A general desire for "financial freedom" is too vague. We've mentioned this before, but what does financial independence mean to you? Write down exactly how much you should have in your bank account. The more specific your goals, the higher the likelihood of achieving them.

2. Make A Realistic Budget

Making a monthly, budget, giving yourself realistic spending money, and sticking to it, is the best way to guarantee all bills are paid and savings are being added to. It is also a monthly routine that reinforces your goals and discipline to stick to it.

3. Create Automatic Savings

Pay yourself first. Enroll in your employer's retirement plan and make full use of any matching contribution benefit. It is also wise to have an automatic withdrawal for an emergency fund that can be tapped for unexpected expenses and an automatic contribution to a brokerage account or similar account. Ideally, the money should be pulled the same day you receive your paycheck or get paid by a client, so it never even touches your hands.

4. Watch Your Credit

A person's credit score determines what rate is offered when buying a new car or refinancing a home. This is why it is important to get a credit report at regular intervals to make sure you know your credit.

5. Live Below Your Means

Mastering a realistic lifestyle by having a mindset of living life to the fullest with less is not so hard. Many wealthy individuals developed a habit of living below their means before rising to affluence. Just make small adjustments by distinguishing between things you need rather than things you want is a financially helpful and get you on the path to financial freedom.