The Road to Financial Freedom - Step 1

photo credit: Unhindered by Talent

So you’ve set yourself some financial goals, and one of them is to start on your journey towards financial freedom. This can seem daunting at times, but don’t despair, if you take the journey step-by-step, you’ll find that your dedication, frugal attitudes, and time is all you need to start on your road to wealth.

Experts say that the absolute, first step towards financial freedom is to build a small $1000-$2000 emergency fund. This fund is not meant to cover you in case of job loss or medical emergency, but will you out when an unexpected expense, like a new water heater, comes up. As you save for your emergency fund, don’t stop investing in any IRA’s 401(k)’s, or any other savings funds you have.
The second, very important step to financial freedom is to save 3-6 months’ worth of living expenses, in case you lose your job or have to quit for some reason. Used Yahoo!’s Emergency Fund Calculator to help determine how much you need to save. As you save, continue investing in your other savings accounts - they’re about your future, and are very important, too.

The road to financial freedom can be bumpy, but with the proper savings techniques, you can achieve your goals. Start small, and don’t expect to accumulate a fortune in a year or two. You’re working towards long-term goals, so give yourself the appropriate time and encouragement.