11 Financial Hacks To Build Financial Security And Freedom

Here are some fundamental facts you need to follow inorder to have an incredible financial security.

Confront Your Fears

The number one fear that most people have about money is that they will be broke when they are old. Financial expert and bestselling author, Dr. Judith Briles says, “Statistics show that for every one hundred women and men who reach sixty-five,only two are financially independent. The reality is that whether you are rich,poor,or in between the person you need to rely on to kyou from the poorhouse is you-your creaticity,your imagination, your intuition, and your smarts.” Other big fears about money for people include:

  • Losing money
  • Looking stupid
  • Talking about money
  • Investing
  • Borrowing money
  • Making mistakes and failing
  • Not trusting themselves
  • Sticking with people who give bad financial advice.

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Do you show up anywhere on that list? Your upbringing is usually the main factor influencing your money habits. Most people would like to have more knowledge and insight about money,but grew up in homes that avoided any such discussions. There were surface talks,but rarely any meaningful instruction.

Take sometime to write down your fears and beliefs about money. How are these holding you back? How do you feel about debt? What is your risk tolerance when it comes to investing? Old negative beliefs will keep you stuck. The best way to do this is by implementing the next step.

Become Financially Intelligent

Learn how money works. It’s not that complicated. There are many courses you can take from the most basic,how to balance your checking account,to sophisticated investing.Check with your local community college. If you don’t have time to take a course,numerous books will teach you everything you need to know.

Take Responsibility For Your Money

If you are single or raising a family on your own,this is straightforward. You are the breadwinner, provider,and the custodian of your financial affairs. If you are in a long-term relationship or married,with or without children,the situation may be different.Communication is the key. Openly discuss your feelings about who is in charge of the various money roles and how you will share responsibility.

Do A Reality Check Now

The financial truth is often intimidating,so people tend to avoid or deny that anything is wrong.Sticking your head in the sand is not the way to get out of your money problems.Some women will blame their husbands,partners or friends who gave them bad advice-anything to avoid reality. If you are struggling financially, a total honest appraisal is essential.

Many people are living in a fantasy,instead of the real world. Schedule a time to do this appraisal thoroughly. If someone else at home is involved,do it together. The most important thing is to accept what is. That’s the ground work you need to lay out before you can design a healthier plan for future prosperity.

Write out in detail where the money goes every month versus what actually comes in after taxes. You will be amazed at some of the ways your money is slipping away. That double latte every day is costing you a few thousand dollars a year! Maybe that’s okay,maybe it isn’t. Are there more important priorities? This exercise may be difficult ,especially if the debt is substantial. The good news is that you can immediately start working on a new course of action based on the truth. In the long run,your honesty will pay much better dividends than before.

Look Ahead,Know What’s Coming

The danger with a hectic,multi-tasking lifestyle is that one week just blends into the next,and suddenly,before you know it,half of the year has gone. Most of my friends tell me this is their reality. What’s worse,when you are immersed from week to week,you can’t see the bigger picture. As far as your money is concerned,you need to look down the road to see what’s coming inorder to avoid surprises. Ask yourself what major purchases or payments will be required in the next two years: a new car,home renovation,college tuition,family wedding,medical expenses,a unique vacation to celebrate a special anniversary,or maybe a significant contribution you want to make to a church or charity.

Have you put a plan in place for what this will cost? Or is it a finger-crossed,hope-you-make-it plan that might create another deep financial hole from which it could take years to recover? Consider the type of lifestyle you want to have in the years ahead. Is it realistic, based on your current financial situation? Can it be simplified?

Dump Your Bad Money Habits

We spend money constantly, which means we develop spending patterns. When we continually make bad choices about money,we end up with all sorts if negative circumstances. For example,if we are always late filling our income tax and paying our credit cards or anything that creates interest penalties,it’s like taking a roll of twenty dollars bills out of your purse and setting them on fire. That’s crazy,you say. Why would anyone do that? Exactly!

Create A Better Plan

Write down all your bad habits that revolve around money. You may have been doing some of these for years. You must write them down to see the truth unmistakably laid out in front of your eyes. Then select the one that is hurting you the most. Make a commitment right there and then stop this behavior. No more late payments,frivolous spending,impulse buying,or paying toi high a price. From now on,its simply not acceptable.

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For some people,it’s not a matter of having a better plan,it’s having any plan at all. Every financial adviser emphasizes that planning is where you must start if you are serious about improving your financial health.A good plan always starts with the end result in mind. What’s your top priority? Getting out of debt, creating enough investment income that you can stop working in the next five or ten years? What type of lifestyle do you want? Maybe you just want to get the credit cards under control. Do you have a grander vision that includes a lot of travel and a stimulating social life? Is there a part of you that longs to do something creative or artistic but lacks the money that would free you up to pursue it?

As far as investing goes,diversification is key.Having all your eggs on one basket like the stock market can be risky,depending on when you need to pull your money out. Cover yourself by spreading the risk. Consider real estate,bonds,and money market counts to balance your portfolio. Get sound advice,which leads us to the next step.

Tap Into the Best Expertise

This is absolutely crucial. You can’t be expected to become a financial genius all on your own unless you plan on making a career out if it. Even if you will need help. As far as advice goes,find people you trust implicitly,for whom you have the utmost respect. If you genuinely enjoy that person’s company,that’s a bonus. Your financial adviser must have credibility. Don’t take advice from someone who does not have a successful track record managing money. Take your time. Ask lots of questions. Do your homework. If you are going to entrust someone with making your hard-earned money grow,you must be as sure as you can be that you have picked a winner. There are no written guarantees. Just minimize your risk. Your intuition goes a long way here. Trust your instincts,they are usually right.

Depending on how complex your financial situation is,consider cultivating excellent relationships with an experienced accountant, tax specialist,broker and banker. Having a personal mentor is also a great idea. This is someone with vast experience who is in a position of financial strength and is willing to coach you. If you are wondering where to find people like this,ask. You are never more than about six people away from the person you need to meet.

Pay Yourself Every Month

This is one fundamental that will not change. It’s a difficult concept to grasp for people who are used to putting every one else’s needs first. Every month,after you write the rent cheque or pay the mortgage, make the next one out to you. If you are married or in a relationship, be assertive about this.

Do not let your husband or partner take total control. Get involved and agree on a unified strategy. Save or invest ten percent of your gross income if possible. If you are not able to do this,pick a smaller number. Remember, it’s developing the habit that counts,not the amount. Your needs are important. When it comes to retirement, if you don’t plan to take care of you,who will?

Stick To Your Plan

For most people,this is the hard part. It helps to focus on the end result,and the freedom your financial discipline will bring you. Money problems are on of the main causes of divorce. Poverty is certainly no fun. The fear of being a bag lady weighs heavy on many women. These are all good reasons to stick to your plan. Use whatever stimulus it takes to motivate you,whether it is the fear of loss or the joy of financial freedom.

Teach Your Kids The Basic

Educating children about money is a parent’s responsibility. Teach your children the value of a dollar. Give them clear examples of bad money habits and have open discussions around the supper table.As they get older,make them save for what they want. They will respect you for this later. Introduce them to the concept of giving and being charitable. A good example,even for a young child,is to explain that a dollar is best split as follows: 10 percent for the government(taxes), ten percent for charity(people who are less fortunate), 10 percent for saving and investing(helping your money grow), and you get to keep the remaining 70 percent. Label four glass jars accordingly,and have them deposit the amounts when they receive or earn any money.

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