Five Fabulous Steps to Financial Freedom

What is financial freedom?

Financial freedom is when our assets (investments, real estate, etc.) produce enough regular income to cover our baseline expenses.

Take a minute to re-read that. How incredibly magical! This means we’ve invested so much that our own money has turned into our primary source of income. At this point, we no longer “need” to work for income (though we can choose to...which is a completely different ballgame.)

Many women aim for financial freedom at retirement - age 60 or later. I am aiming for financial freedom by 45 - or earlier. (Here’s a bit more on why financial freedom is a priority for me.) There are countless others who set their goals more aggressively, for age 40, 35, and even 30! In a future post, we’ll explore your target age. Along the way, we’ll educate and inform each other on how to get there.

How do I get to financial freedom?

I have defined five fabulous steps: Inventory your finances, Grow your income, Manage your expenses, Save and invest your money, and Manage your risk.

The order is intentional and designed to help us continuously grow wealth over time. So - don’t get overwhelmed. Let’s tackle the fabulous five one at a time, and revisit them regularly to keep growing our wealth.

Another key to financial freedom is making ongoing, deliberate improvements over time. One of the many amazing things about money is that modest improvements free up both mental and financial resources. Cutting a $55 monthly expense frees the worry of that bill AND creates a $660 annual cushion in your budget. This expense reduction gives you $6,600 over next ten years - more if you invest that savings.

We’ll tackle each of the fabulous five in order, together, and revisit them in detail over time. I’m curious about your thoughts on financial freedom - have you set a target age? How does it make you feel - scared, excited, anxious, motivated?  Let’s get started - you got this.

xoxo, Ms. Financier