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Defining Financial Freedom

Finance

Finance (Photo credit: Tax Credits)

As I prepare to revisit my quest for financial freedom I realized that I had not truly defined what it means to be financially free. Now lets keep in mind that for the past two years I have been a full-time graduate student….so money has not come easy and no raises my way!!!!!!

Despite being on a fixed income (which technically most people are on a fixed income-lol) I am really excited because I only have one more payment on my car note! I have also been able to take more trips and enjoy my life in general.

What I have come to realize is that the way I have spent money is very focused on the NOW instead of planning for my future.

Being financially free is NOT about now.

I have decided to revisit my idea of being financially free. Below are three goals I have set for myself to help define and measure my trek toward financial freedom:

•Raise my credit score by 30 points in one year
•Save (DO NOT TOUCH) $1K in one year
•Increase my income by $100 each month during the next year

I am thinking that If I can increase my income by $100 each month it should make sure that I have my savings of $1k. I am also thinking that by no longer having a car note I will be able to redirect some of my monthly expenditures to clearing up other debt.

I will do a 6 month check in and let you know how it is going.

Please share with me some how you define being financially free.

 
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Posted by on June 30, 2013 in Uncategorized

 

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Financial Freedom: Every Little Bit Counts

Financial Freedom: Every Little Bit Counts

A few weeks ago I was talking with a friend about my income activities. Since becoming self-employed, I take on a lot of random opportunities that lead to (some) of my bills getting paid. Tutoring, taking surveys for ClearView research, managing small projects for individuals, and my unemployment check is how I currently survive. Paycheck to paycheck is an understatement. 

My friend went on to explain that she and her husband budget their lives based on one income without even maxing their expenses at the top of that salary. I was flabbergasted! How was this possible?

After describing her family’s financial history, it became clear that she learned to manage money by observing the ebbs and flows of her parent’s financial maintenance. At that moment, I realized that I too learned from watching my mother maneuver financial sources like a chess game each month (I will save that lesson for a future entry).

My friend had learned financial management better than I did, and now I have some catching up to do. 

I don’t think it’s too late. In my late 20’s I can actually visualize my financial freedom. I am on a two-year plan that involves learning all that Suze Orman has to teach.

On a daily basis I figure out how I to practically cut corners and save on my most common expenses. One thing I have started doing is using coupons to save on purchases at grocery stores.

Also, on my previous post, Shaped by Budget: Aligning Goals With Personal Finance, Ruben Berenguel commented that I should figure out how to increase my income instead of being confined to what I currently take home.

Since then, I have consistently found ways to make more money. The additional income, whether it be $20 or $60, helps cover mandatory expenses, including gas and groceries.

In the comment section, please share some of your convenience saving tips or legal ways to make a few bucks quickly.

Below is an article from Shrinkage is Good by Jonathan Rivers. The post contains cost saving tips on common expenses.

http://www.billshrink.com/blog/1062/the-cost-of-convenience-10-things-we-overpay-for/

 

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