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	Checklist For Financial Freedom
	By Ramona Creel

Feel free to use this tip sheet / checklist as you tackle your own ""do-it-yourself"" organizing projects. If you would like to REPRINT or DISTRIBUTE this information, please click here for reprinting instructions.

• financial independence doesn't mean living in the lap of luxury
• it has more to do with liberty from monetary worries
• no debt -- no credit card bills, car payment, or mortgage
• a healthy nest egg for emergencies
• expenses that are below your income
• a steady habit of saving and investing
• being frugal and deliberate about your spending choices
• you don't have to work to pay the bills

• the first obstacle to financial freedom is the way we view money
• we place importance on income and material possessions
• debt has become commonplace and even expected
• money is really nothing but a means to an end
• money is only worth the non-materials things it buys you
• free time, security, freedom to enjoy life, the people around you
• money is not evil or divine, it is simply a tool

• financial independence is about value-based spending decisions
• avoid impulsive spending (proactive rather than reactive behaviors)
• make conscious decisions about how to invest your resources
• clear up financial disorganization (interest charges, late fees, etc.)
• pay attention to how and where we spend money
• track every single penny you spend for a month
• look at each expense and ask if you get a tangible benefit from it
• ask if it is worth the time spent earning the money to pay for it

• list out all of the balances you owe
• make note of the interest rate charged by each
• pay the minimum on all debts except the highest interest rate
• pay as much as you can on the highest interest rate
• when that card is paid, apply money to the next-highest rate
• keep working your way down the ladder until all are paid off

• decide which expenses are necessary and which waste money
• start first with incidental expenses (sodas, snacks, magazines)
• also consider larger expenses (housing, car, vacations)
• ask if your money isn't better spent elsewhere
• ask if you would get more benefit from other spending patterns

• credit cards can build credit and consolidate expenses
• but when used irresponsibly, they can drive you into debt
• pay your cards off in full each month to avoid interest charges
• don't use your cards as a quick "loan" for purchases
• if you don't have the money, save up before making the purchase
• be careful about annual fees for "rewards" cards

• the goal is to live comfortably without having to work
• compound interest learns money on capital and past interest
• invest regularly, putting a set amount away each month
• plan to invest for the long-run -- don't try to "time" the market
• diversify by including many types of investments in your portfolio
• protect yourself against loss by spreading your investments around
• it's never too late to start

 

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