Ok, now that you’ve taken the first step to becoming financially independent and secure, I’m going to share 10 ways to start, build, maintain, or fix your financial situation/circumtance.
1. Establish and maintain motivation to being financial secure.
2. Don’t get discouraged if it’s taking a while. Patience and consistency are key elements.
3. Financial freedom, security, and wealth come from multiple avenues of income. Unless of course you’re fortunate to inherit wealth.
4. Start small and work your way up. Taking too big of a step could be overwhelming.
5. Open a savings account. Starting with a savings account allows you to put away money that is earning interest. Therefore, your money will be generating a small income. REMEMBER:start small. Be dedicated to putting money into the account on a frequent basis. (A specific amount is good, and you should set a specific reoccurring time to put the money in the account, like every paycheck or once or twice a month.) TIPS: It’s more helpful if you don’t touch the money at all unless it’s an emergency.
6. Establish an emergency fund. This allows you to have money on hand in the event your regular income can’t cover your expenses. (You could open another savings account for this.)The amount can be determined by the most costly expense you might encounter such as car transmission, roof leak, etc. $2000 is a good starting point.
7. Once your savings account reaches the necessary minimum to open a CD(certificate of deposit), transfer the money into a CD. This will earn more interest than a regular savings account. (Note: the more you put in and the longer you set the term, the more interest you will earn. CDs usually start at $500, and terms generally run from 6mos-5yrs. Some banks offer large minimums with short terms that have promotional rates that are higher than regular CDs, wachovia bank is one of those banks.)
8. Once you’ve started a small money generating agent and set aside your emergency fund, then you can start working on your debt. You want to pay more on your balance than the minimum requirement. **You can work on your debt before opening a CD, but you shouldn’t work on debt before establishing a money generating agent and an emergency fund. If you don’t have a back-up (emergency fund and savings) for your primary income, you’ll most likely need to use some form of debt product (loans, credit cards, borrowing from friend/family) in an emergency situation or when your primary income doesn’t cover your expenses.**
9. Research other means to occur avenues of income. Some starters are paid surveys, bonds, stocks, mutual funds, investments (real estate, businesses, etc.), IRAs, money market accounts, more CDs, etc. **The more avenues you have, the more income you will earn, therefore, building and maintaining financial freedom/seurity/wealth.
10. DON’T GIVE UP! and stay with it. There are many ways to build something, however, there’s one principle that must always be present, STARTING WITH A STRONG AND SOLID FOUNDATION!
In closing, remember that financial freedom, security, and wealth is established by multiple avenues of income. You should always have an emergency fund or back-up fund for your primary income before working on debt to ensure that you don’t have to rely on debt products for help. Start small with money generating sources, too big of a step could be overwhelming financially. Don’t look at putting money aside as a bill, look at it as self financial promoting or as a self made retirement tool. Always keep in mind, patience and consistency, and stay motivated and encouraged. Beginning with the first five steps will help you establish a strong and stable foundation to build off of. Good luck and stay positive!