How to achieve financial freedom

Financial peace isn’t the acquisition of stuff. It’s learning to live on less than you make, so you can give money back and have money to invest. You can’t win until you do this. ~Dave Ramsey

Statistics suggest that most people these days are heavily in debt. Debt is a burden that enslaves us. Knowing we have debts can be stressful. Unsecured debt built up through the excessive use of credit cards is also very expensive. That means even a small sum outstanding on a credit card can very quickly become a large debt due to the effect of compound interest. Are you affected by debt? Are your finances out of control? Would you like to achieve financial freedom?

Often I hear people say things like, if only I could increase my income I could pay off my debts. In fact those same people, if they did increase their income, would probably just spend more. And financial freedom would remain a distant dream.

If financial freedom is your aim then it’s essential that you take control of your finances. It all starts with spending less than you earn. If you spend less than you earn you can work on becoming debt free and then start to build capital.

You must also pay yourself first. What does that mean? It means that when you get paid each month you take 10% of what you earn and put it away. Don’t wait until the end of the month to see what you’ve got left. If you do that you’ll never save anything. If you take 10% upfront it will just be another debit on your income like taxes and pension contributions. You’ll quickly get used to having only the remaining 90% to live on.

And what do you do with the 10% you’ve put away? Initially if you have debt then it makes sense to use it to deal with that first because the interest you’ll pay on the debt is always greater than any interest you’ll get on savings.

To pay off your credit card debt it’s essential that you find a way to eliminate the interest element each month so that any payments you then make go against the outstanding balance. And how is that done?

When you take out a new credit card account it often comes with a period of zero interest, usually six months. These accounts also allow you to transfer in outstanding debt from another credit card account. So by moving from one card provider to another and transferring the debt across to the new account, you then have a period of six months to make payments against the outstanding balance. Don’t use this card to increase your debt. Use it only for reducing your debt. At the end of the period of zero interest repeat the process. Once again, you move to another card account offering you a zero interest period. By focusing only on the outstanding balance it will be paid off quicker.

Eliminating the burden of debt is the first step on the road to financial freedom. Freedom from debt will give you peace of mind. And peace of mind is a good reason for spending less than you earn.

Learn to live within your means. If you live modestly and spend your money wisely, you can ensure that you have enough money when you really need it. You can also build that nest egg for your retirement and give a little back to those less fortunate than yourself. And you will feel so much better about yourself too.

Conversely, gathering too much clutter through excessive spending on things you don’t really need can become stressful, as well as wasteful. The choice is yours.


Financial freedom is achievable and it will give you peace of mind. You will sleep better knowing you’re debt free. So spend less than you earn; pay yourself first; eliminate expensive credit card debt; and start building capital. Your older self will be grateful you made the effort I can assure you.

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© Roy J Sutton and Mann Island Media Limited 2017. All Rights Reserved.

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