Be the boss of your finances and be free
Imagine the feeling of being free. You might think this freedom you seek is merely a dream, but what if we told you it is achievable? What if we told you that you could become the boss of your finances?
First of all let’s ask ourselves this: What is financial freedom? Is it being debt free? Having the financial ability to do what you like when you like? Owning your own home? Or does it mean never having to work again? The answer is all of the above and none of the above. Financial freedom means having control of your finances to give you the freedom to achieve your financial goals. It means becoming the boss of your finances, rather than your finances being the boss of you.
So how easy is it to achieve financial freedom. We have provided some simple steps that will set you on your path to freedom.
- Set some goals
The first step towards freedom is to set some financial goals. What do you want to achieve in the long term and the short term? While we all want to sit comfortably in retirement, don’t forget to have some fun along the way. Some ideas include:
- Retirement nest egg;
- Family holiday;
- Children’s education;
- Buy your first home;
- Buy an investment property;
- Invest in the stock market;
- Start a new business;
- Save for a special event;
- Purchase that handbag, shoes or fishing boat you’ve had your eye on all year.
Whatever your goal may be, whether it’s something for now or planning your retirement, write it down and make it happen.
- Create a budget
Stop working pay to pay and start taking control. Create a realistic budget that allows you to plan ahead but doesn’t leave you short. Once you know where your money is going it makes it easier to identify areas where you can save. Overspending leads to more debt and you will continue to be controlled by what you owe the banks.
Make sure you include everything in your budget. If your treat to yourself is to buy a coffee three times a week, put that in there. If you just can’t live without your Friday nights out, put that in there.
Don’t forget to include your goals as part of your budget. If you want to take an overseas holiday, allow for it. If you want to invest more in your super, allocate it.
Above all, every expense should be equal to or less than your income.
- Cut the cards and consolidate
Australia’s credit card debt is the highest in the world. With around $32 billion owing that’s an average of approximately $4,300 per card holder*. In addition, credit cards attract high interest rates of anywhere between 10-25% per annum.
Consolidating your debt allows you cut up the cards and stop playing catch up. There are several ways you can achieve this and Campbell Green can help sort through the maze of options.
- Save, Invest and Spread the Love!
Before you can begin to move forward financially, first you have to get ahead. Allow for consistent savings in your budget. Once you’ve cleared your debts and you have a few dollars in the bank the future will begin to look clearer.
Did you know that buying your lunch everyday can cost up to $100 per week? That’s $5,200 per year – enough for a family holiday! Start identifying areas where you can save.
Once you’ve sown the seeds of savings, grow it. Consider the options available to you and have a chat with us about how you can make your money work for you, rather than you working for your money. Investment is the key to building wealth.
However, it’s important not to put all your eggs in the one basket – look at ways you can spread the love. Maybe investing in shares appeals to you, or an investment property is more to your liking, or maybe you’d like to have eggs in every basket. Whichever way you go, speak to us at Campbell Green about spreading your wealth and diversifying your portfolio to ensure you are guarded from unnecessary investment risks.
- Continue your journey to financial freedom
You are on the road to freedom. Now all you have to do is keep on track. Remember to reassess your goals and your budget regularly, and continue to save and invest and the financial freedom you seek will be yours.
If you are looking for someone to point you in the right direction, our team of financial planners and consultants at Campbell Green are experts in investment and can help set you on the right path to achieve your financial freedom. Feel free to contact us today to see how we can help you or someone you know.
*Credit card statistics taken from Australian Securities and Investment Commission (https://www.moneysmart.gov.au/borrowing-and-credit/credit-cards/credit-card-debt-clock).
