Profitt Report: Achieving financial independence
Being free from the burden of debt might sound too good to be true, but it’s possible.
“So some people feel like financial independence is being very wealthy,” says financial professional Mindy McIntosh, who has a simpler view of what it means to be financially free.
“It's more of ‘okay we have this budget; we know what's coming in, we know what's going out, this is what we can spend.’”
The first step to financial freedom is to decide what that means for you, then map it out.
It might require a revolutionary change to your budget.
“What are your wants, what are you needs, what do you like doing, then how do we keep that budget friendly for you,” says McIntosh.
Oftentimes, sticking to a budget means delayed gratification; skipping that night out in order to save for your future.
The trick is being disciplined but also don’t deprive yourself entirely.
“I think they think it's going to be a bad thing but really it can be a positive, uplifting thing if they just know and feel like know where I'm going and I know where I'm at,” McIntosh explains.
Next, take a look at your debt.
“Get that smallest balance paid off first it gives them momentum and creates energy for them, then they really start to realize ‘maybe I can cut down on these four different items we are spending money on and over time,’” advises McIntosh.
Lastly, McIntosh says don’t forget to pay yourself.
“I don't mean pay yourself first today to go out and blow your money, spend your money frivolously but pay yourself now for your financial future.”
That means live below your means, save 10 to 15 percent of your income for your future.
Mindy suggests making it easy by electronically depositing your income into an account.
“You don’t even realize that's there, let that be managed then by your advisor.”
A little change of mind and persistence and financial freedom could be your reality.