60 money moves that could set you up for life

#60 MONEY MOVES THAT COULD SET YOU UP FOR LIFE HOW TO#

So take a piece of paper and write down your top 5 goals that you would like to achieve over the next 1, 5, 10, and 20 years.Īlso, ensure that while you are writing the goals, you are identifying SMART goals.

#60 MONEY MOVES THAT COULD SET YOU UP FOR LIFE HOW TO#

But until you write down your goals, your money will be without a purpose and you will not know how to make the best use of it. Thus, money is simply a means to achieve your financial goals.

As soon as you have enough money, these are the things that you want to fulfill. Why do you need money? It could be to get rid of an education loan, trying to start a business, to travel, to plan weddings for your kids, for your retirement, and so on. Once you have these numbers, you move to step 2 of your financial freedom journey which is writing your goals. In other words, you need to know your personal financial statement with a fairly accurate knowledge of your income, expenses, assets, and liabilities. This includes having a clear idea of how much debt you have, your accumulated savings, monthly expenses, your income, etc. The first marker on the path to financial freedom starts with knowing where you are currently. The more steps you can achieve, the faster shall be your journey on the path to financial freedom. Some of these steps can be behaviors, tactical and strategic decisions. Your quest for financial freedom can be broken down into 9 essential steps. You can pick your ideal level of financial freedom depending on your current situation and lifestyle. The idea is to save 50 to 75% of your income, which is then used to accumulate assets and helps in generating enough passive income to provide for retirement expenses. The concept of FIRE is around frugality with participants intentionally maximizing their savings rate by finding ways to increase their income or lowering their expenses. FIRE is an abbreviation for Financial Independence, Retire Early, and is a lifestyle that is becoming popular in the West with people in their 20s and early 30s. Level 5 is an interesting one and can be crudely expressed as the FIRE movement. But most importantly not going broke while doing so. Freedom of time happens where your cash flows are sorted in a way that allows you to leave your job to follow your passion or spend more time with your family. This is exactly why financial freedom is nothing but financial control.Īnother noteworthy level is level 4 i.e. Even a super-rich person might be earning and spending to the limits that he would be living under tight financial conditions. It is an interesting level because living under tight financial conditions need not be limited to the working poor. One of the most interesting levels is the first level, where you are not living paycheck to paycheck. You experience the joys of traveling the world, spending time with friends etc. You have accumulated enough assets and/or passive income streams You adjust or downsize some living standards to retire early You leave rat race to follow your interests & not going to be broke doing it You are earning enough, doing things you enjoy & continue saving Your savings can support a sabbatical or extended vacation You have an emergency fund for contingenciesĮnough Money to Quit your Job (for a bit)

60 money moves that could set you up for life