Budgeting To Create Financial Freedom

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Budgeting To Get Financial Freedom -a bag of money with notes on it

Budgeting To Create Financial Freedom…this often takes some strategy…

post updated 06-14-2024

Working in finance, or lending you will see how some people skip the budgeting part of their personal or family finances. They often check their assets but forget to take away their obligations.

Opposite of that, some people are just frugal, conservative, wise, and do not make rash decisions about anything. They have a mindset of knowing that it takes budgeting to create financial freedom.

When you go to purchase a new home, if your mindset has been about living somewhat frugally and as a conservative spender, you will have headway in affording the largest purchase of your life.

The Conservative Mindset

People who have a conservative mindset will think about, how can I buy this without paying over the top, or maybe I can do without it. They want to make sure they are getting the best deal, and they have done their homework to know if they are. At some point, they have more than likely been budgeting to create financial freedom and security.

How Budgeting Can Help Your Financial Life

Budgeting early in life helps you to become more financially stable as your life progresses. It is common for some people to make life changes at different stages. This can lead to being forced to make those changes by necessity.

Others start from childhood. They save their toys, they save the five and ten dollars given to them by grandparents, plus their birthday and holiday gifts. When high school is finished, they have some reserves for college.

Having known a young man who seemed to be born with Warren Buffet’s mind, it is easy to understand how some people accumulate wealth so early. He had accumulated around 20 grand by the time he graduated from high school. His mom was in banking, but it was the child’s mindset, it was like he was born to know the importance of money. He would take his lunch to school, and save his lunch money, and his allowance.

Fast forward to today and he is probably making the income of a person with a P.hD (per his mom). (He did have some college). He has a successful business and reaps the fruit of his ability to work hard, plan for the future, and save for the rainy day. He is doing well in business due to discipline, the right choices, and his money mindset.

We All Want Financial Freedom

Everyone wants financial freedom, but they are not willing to sacrifice not having what they want to accomplish the task. Often living in the moment and wanting to stand out. Instead of living with reality, being disciplined, and living on a budget to have freedom at some later point in life.

One can look around and see those who have achieved this great stance and know that it can be done with some thought, discipline, and a process.

Of course, some people have tried living life extravagantly and come to realize that things must change. It is possible to take control and still recover from too much debt, too much fun, and not enough financial freedom.

Where Do We Start?

Having a budget and being mindful of that budget is a key factor. One must be willing to stop overspending, watch costs, and determine an amount they want to save. Quite simply, it takes work, planning, and saving, instead of spending, borrowing, and living like someone else.

When those unexpected expenses pop up that are needed to sustain life, the money is there to cover those when they are within the budget. The first step is setting our goals and sticking with the budget.

Here are a few ways to get started on your budgeting to create financial freedom:

  1. If you started early in life, good for you, however, there it is never too late if you are just beginning; proceed.
  2. Start your budget and start conservative spending and being frugal.
  3. Stop impulsive spending. Do not spend just because you have money to spend.
  4. Think about what you are spending.
  5. Do not try to live like the next-door neighbor or your best friend. This is your game; wanting to appear as if your ‘balance sheet’ bottom line is more than it is, will lead to deception for yourself. Be true to yourself. Look out for yourself and then you can be thankful for being wise enough to accomplish your financial goals.
  6. Make sure you have a sufficient emergency fund in your budget. Setting reasonable goals is mandatory. If you set it too high, you are bound to backslide. Starting small is better than nothing is, initially, and you might be disappointed if you reach for the sky too soon.
  7. Do not borrow to get out of debt; you cannot. Cut back, and stop the extras that you really can do without.
  8. Pay any credit cards balanced off monthly. One credit card at a time, start with the smallest and work backward. Put extra money into the principal and you will be surprised how quickly the balance disappears.
  9. Do not charge for little stuff. If you are constantly using your credit cards to buy little stuff, it will pull your credit score down when you get close to the high limit of your card.
  10. Pay cash as often as possible, if you do not have any maybe that is a sign.
  11. When you shop, watch for sales, and think about how long it will last. If you are buying junk, is it really, what you need?
  12. Use coupons. If you find something on sale and have a coupon, you have hit the jackpot. Do not go overboard with coupons though. You read where some people stock up because they have coupons.
  13. Learn the basics of saving. Pay yourself something. *Twenty dollars a week, month, it all adds up.
  14. Stop feeling sorry for yourself, and be ashamed to let your friends know that you have gone conservative. Be real, be yourself, and do it for yourself.
  15. Open up a savings account if you do not have one.
  16. Contribute to 401K at work; this is the best way to make money on your savings, as the company will share in your savings.
  17. Remind yourself to spend less at the grocery store but know that you can save by making more meals at home instead of going out.
  18. Get a mindset for what you would like to save each month, three months, and six months. The more you save, the more you are going to get excited and want to save more. It is a good feeling to know you are getting more control over your life.
  19. Take baby steps and do not expect miracles if you have not saved much before.
  20. Help another soul occasionally; giving freely will bring you blessings. Give to your Church, and be thankful.

These are only a few compared to the many ways to jump-start getting financial freedom by making a budget. It is never too late to start saving and minimal savings will grow more than you think.

Get More Advice When You Want To Invest In the Markets

It is important to get advice from those who have expertise in finance and saving, and this is true about larger investing.

Never invest with anyone when you begin your road to financial freedom that you have not checked out. A bad investment can happen even for those who have been investing for years. If it all sounds too good to be true; it probably is.

Remember to check with the Better Business Bureau. Look them up on the web; read the good and the bad reviews. Never assume!

Summary

Successful financial freedom does not happen overnight. However, if you are conscious of planning a future of financial freedom and willing to give up a few things initially, you will see results before you know it.

Young people are very capable of taking advantage of every promotion or incentive to earn. Those promotions usually come with a salary upgrade; this can help you save even more. There is no need to be ashamed of having to work a second job. It is your life, live it!

The best place to start is where you are. The best time to start is now. If you begin to save now, before you know it, you will have formed a habit to enrich your life as you go forward. You will not regret this habit of budgeting. You will be accumulating, and setting yourself up for financial freedom. All because you decided to make a budget and stick to it.

Congratulations if you have been doing this, and kudos to you if you are just beginning.

 

More reading: How To Budget

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