Learn About Investment Options
Start by working with your financial advisor to take advantage of the tax-favored retirement accounts that are available to you at work, like a 401(k) or 403(b). How much should you invest toward retirement? Shoot for 15% of your income. And if your employer offers a match on contributions to your 401(k), take it! Don’t say no to free money! If you have access to a Roth 401(k) at work with good mutual funds, even better! You can invest your full 15% there. But if you have a traditional 401(k), invest up to the match then invest what’s left of your 15% in a Roth IRA. If you still have part of your 15% left after maxing out a Roth IRA, go back to your 401(k). Why is a Roth a good idea? When you invest in a Roth 401(k) or Roth IRA, the money you invest grows tax-free. That means you don’t have to pay taxes on it when you withdraw money in retirement. That’s a big benefit you want to take advantage of.
Real Estate Investments
Your home should be part of your plan for financial freedom. That’s why it’s important to make wise decisions about the kind of home you purchase and how you choose to finance it. If you buy a home that is a good investment, it will continue to grow in value as the years go by. Once you’re investing 15% of your income into retirement accounts, you should use any extra money coming in to pay off your house.
Reaching True Financial Freedom
Financial freedom is about more than just being able to cover unexpected emergencies—like a car repair—without worrying. The fun really starts when you realize you can meet the needs of your loved ones. Imagine being able to bless a family member by paying for their car repair or even better, purchasing a car for them! You can take control of your finances!