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Old 06-19-2016, 10:48 AM
Here2help Here2help is offline
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Join Date: Feb 2016
Posts: 21
Default Steps you need to take to become Financially Independent

Steps to Financial Independence

1. Stop getting into DEBT. Commit to NEVER borrowing money EVER AGAIN (other than possibly

a house). Close out & cut up all credit cards.

2. The only way you will succeed if everyone is on same page. Talk with spouse/significant other

and children (appropriate age). Let them know the situation. If youíre single, find a family

member or someone that will hold you accountable that you trust.

3. Do a written budget. Make sure that your 4 walls are covered [Food, Shelter, Utilities, Clothing].

After just 3 months, 84% of the people feel they are more in control of their money.*

4. If in debt, put all retirement contributions on hold.

5. Get a $1000 emergency fund. This is only for EMERGENCIES! Not that you need a cup of

coffee at Starbucks. Do what you have to get to $1000 as quickly as possible. Have a fire sale;

sell off anything that you havenít used in 6 months. Things like extra clothes, kids toys,

electronics you donít use. Have a garage sale. Sell off your toys; bikes, boats, ATVs, investment

properties, etc. Is it possible to downsizing? Look at cutting your lifestyle budget. Stop taking

vacations (for right now). Can you reduce your phone bill, data plan, internet speed/usage,

going out to eat, change cars to one(s) without payments (assuming pay off longer than 2

years), etc. Take on a second job if you need to! Remember all of this is only temporary.

6. Once you exceed on your $1000, get yourself current on all bills.

7. Get health insurance! Chances are you will get sick. Have some major medical bills. This is

especially true if you have children.

8. Get life insurance. All you need is Term Life Insurance. Life insurance is not an investment. You

need to cover all of your expenses if something does happen. Make sure that it covers all of

your debts, not just your income. This is especially important if you have children. Remember

that social security will only provide a SMALL amount of coverage if you have dependents.

9. Look at raising insurance deductibles from $500 to $1000. Possible dropping full coverage for

your paid for car.

10. Do a debt snowball. Start with lowest balance first.

11. Youíre now able to take a vacation! Just pay cash and donít use your emergency fund!

12. Save up between 3-6 month of expenses. This is now your emergency fund amount.

13. Start a car replacement fund.

14. If youíre going to buy a home, save up 20% for down payment. Or if you own a home, put more

money down to remove the PMI.

15. Start a replacement fund for things like furniture, appliances and other non-essential stuff.

16. Start Contributing minimally 10% to retirement funds.

17. Save for Kids College fund(s).

18. Pay off house early.

19. Live life like no one else. Plan for the future. What are you passionate about? How can you give

back (time, money, create a business to help others, etc.)

*Ramsey Solutions Master Coaching Training
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  #2  
Old 06-23-2016, 09:57 AM
NancyM NancyM is offline
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Join Date: Jun 2016
Location: Mexico
Posts: 20
Default Re: Steps you need to take to become Financially Independent

A good advice on selling things that have not been used for 6 months!
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