6 Things To Do To Achieve Financial Freedom

Who would like to struggle with financial problems? Let's say your retirement, this is the major problem we deal with many clients. Everyone wants to achieve financial freedom for their retirement. I know that many people might want to say, It is easy to say but hard to do. Well, this is my point. Since I got into the financial industry, I work for hundreds of people and trying to look after their retirement.

In reality, their financial literacy holds them back from doing any investment and ended up relying on their social security. With social security benefits, I guarantee you that you will lose your life style because of the lack of supply from the government. Truth, you may not even get social security benefit 15 years from now. I would like to talk about social security at the different blog, but I want you to get ready for it. Get ready, not next year, not tomorrow, NOW. It won't cost you much to invest at all anyway. The tendency of people is procrastination and not making any action until it is too late. I really hate to say, you should have come to see me earlier or there is nothing I can do for you because you lost your time.

So I would like to introduce 6 basic things to increase your financial status today!!

1. INCREASE CASH FLOW

When you create your financial strategy, it’s important to know how much money you have access to and how, if possible, you can increase that amount. This money is your cash flow and can help you accomplish many things, including reducing or eliminating debt and increasing your savings.

Here are some strategies you can use to increase your cash flow:

Create a budget for your monthly expenses and needs – and stick to it.
Spend less than you earn.
Raise deductibles on your auto, homeowners and other insurance policies, which can help to lower premium.
Look for ways to earn higher interest on money that is currently in low-interest savings accounts.
Start a second career or a part-time business to earn additional income with us

2. DEBT MANAGEMENT

One of the biggest obstacles to a sound financial future is consumer debt. It’s important to have a strategy that can help reduce and eliminate debt.

Here are some approaches you can take:

Pay more than the minimum, as much as possible within your budget, on the credit card/ loan with the highest interest rate. Once you pay off that credit card/loan, begin paying off the next highest interest rate credit card/loan.
Consider transferring credit card/loan balances to a card with a low-interest rate that is offering a promotional, no fee transfer option. Don’t hesitate to call the issuers of all your credit cards to ask for a lower rate.
Quit charging. Put your credit cards away so you don’t consider charging on them while you’re paying down your debt or after it’s paid off.

3. CREATE EMERGENCY FUND

No matter how much you plan in life, the unexpected happens. To prepare for life’s little “disasters,” set up an emergency fund to help pay for any resulting expenses. A basic rule of thumb for determining how much you should set aside is three- to six-months of your total expenses.

Don’t think you need an emergency fund? Consider these potential expenses and scenarios:

Major car repairs
Major home repairs
Major appliance repairs or replacement
Loss of a job
Serious illness or hospitalization
Extended elder care or long-term care

Having an extra source of funds gives your family peace of mind during a stressful time.

4. PROPER PROTECTION

A key component to building a sound financial strategy is to use life insurance to help protect your beneficiaries in the event of your death. Life insurance not only helps replace lost income, it can also help preserve a family’s assets.

You may think that life insurance is not necessary when you’re young, but if you have a family you may need it more than ever. Should you die at a young age the death benefit from a life insurance policy can help pay debts, education costs, childcare, and so much more. When you are older, life insurance can help protect the assets you have accumulated from the erosion of estate taxes.

Protect against loss of income
Protect family assets

5. HELP TO BUILD WEALTH

When developing your financial strategy, it’s important to ensure you put a long-term asset accumulation program in place that strives to outpace inflation and reduce taxation. When determining the best program for you, ask yourself the following questions:

How long do I expect live?
How much it will cost to live comfortably during those years?

There are key financial concepts that can help you as address these questions. For example, the Rule of 72 is an estimation of the time it takes for money to double.* Additionally, understanding the cost of waiting gives you an idea of the financial advantage of starting to save today.

6. PRESERVE WEALTH

An essential part of your financial strategy is ensuring that the wealth you accumulated over the years is not impacted by taxes or other unintended consequences. A well-designed strategy can:

Eliminate probate costs
Help manage estate taxes
Ensure your legacy reaches your intended heirs, including any life insurance coverage, pensions and annuities
Provide an opportunity to set up medical and financial powers of attorney so that, should you become incapacitated, someone can take care of your finances, make medical decisions for you and more

We want you to be knowledgeable enough to make an action toward your financial freedom!!