5 Steps to Financial Freedom

The 4th of July is fast approaching and is a celebration of our country’s independence. It should also serve as a reminder to all of us the freedom we have and strive for. This would include trying to achieve financial independence. Financial independence can be hard to define since these words conjure different meanings for each of us. No matter your personal definition, there are some basic tenants that are important to achieve financial independence.

1. Spend less than you earn

It is impossible to have financial freedom if you are spending more than you earn. To be on the path to financial independence it is important to have a plan and stick to it. This seems obvious but it is surprising how many people do not practice this. For the most part no debt is good debt. Some debt is beneficial to help you move forward in life, namely school loans and mortgage debt. But the reality is the lower the debt you have, the easier it is to live the lifestyle you want.

2. Save and Invest Regularly

We know life happens and it is important to have an emergency fund for life’s unexpected turns, as this year has shown. Your emergency fund is the most important place to save and try to keep 3 to 6 months’ worth of living expenses in savings. Investing on a regular basis is the best way to achieve financial independence over time.  

3. Always be learning

So many people become complacent in life. There is a strong correlation with wealth and education and reading. Individuals that continue to be students in life and continually learn and grow their skillset typically are on the path for financial independence.

4. Take care of yourself

It is important to take care of your mental and physical health. Prevention is the best medicine and taking care of yourself physically and mentally reduces stress, anxiety and increases your mood and performance.

5. Have patience Financial independence does not happen overnight unless you win the lottery. Since winning the lottery is not sound financial advice the best way to achieve financial independence is to be consistent and intentional over a longer period. Remember you run a marathon one step at a time, one mile at a time.

Announcing Our Financial Planning Summer Webinar Series

We are very excited to announce an upcoming webinar series on some of the most common topics about which our clients ask us. This series will cover Social Security, Medicare, Estate Planning, and Financial Planning. Each webinar will be hosted by one of our Financial Planners along with a guest speaker who is an expert in the subject matter. The guest experts will also be available to discuss and answer your questions during the Q&A portion. Below are the dates and times for the webinar and click on the links to register:

July 7th at 10:00 AM PDT – Social Security

July 14th at 10:00 AM PDT – Medicare Planning

July 21st at 10:00 AM PDT – Estate and Legacy Planning

July 28th at 10:00 AM PDT – The 7 Pillars of Financial Planning

These webinars will be very informative and are a great opportunity to have your questions or concerns answered by experts. The webinars are complimentary so please feel free to share the information on them with friends and family.

Important Retirement Ages

Retirement is one of the greatest achievements in life. It is the culmination of decades of planning and hard work. There are some important age milestones along the way that you should be aware of to help you reach your retirement sooner. The chart below is a summary of these ages and why they are important.

We are here to help provide guidance and answer questions along the way. Please do not hesitate to contact us today to learn more or see how these ages can impact your retirement.