This month we celebrate Human rights day and our great constitution, which gives us many types of freedom, like the freedom to vote, to move around unhindered and to take one’s place as an equal in society, but there are some freedoms that are not a right and which need to be earned.
Financial freedom is one of these. Certainly, we now have equal opportunities to earn a living in our chosen fields whatever they might be, but the accumulation of wealth that ultimately gives one the freedom to choose a certain lifestyle is very much a choice we make and it requires adopting some solid financial habits to accomplish this.
Good financial habits just come down to basics but we need to be reminded about these sometimes and execute them repeatedly until they do, in practice, become habits. So what are these good financial habits that attain financial freedom?
Budget to save
From the day you become an earner and right throughout your career, your personal and your business’ budgets need to be strictly managed and adhered to with the primary purpose of saving money. This means that expenditure always needs to equal less than income and ensuring it does should become the first habit you acquire.
Save to invest
Habit number two is to ensure that what is saved is not just left to earn minimal interest in a bank account but to invest it actively where it can set your wealth profile on a growth path. There are other aspects too to ensure your wealth is not eroded, like protection of income against unexpected illnesses or mishaps, and investing to ensure the taxman doesn’t take more than he needs to. A good Financial Advisor can assist with this.
From day one, other than the bank’s assistance to buy you a home, which is something you are unlikely to be able to pay for in cash (for a while anyway) resist debt of any kind. If you need a credit card, or to open an account to make purchases, the reality is that you are buying what you can’t afford.
One of the best financial habits to adopt is to avoid debt at all costs and if you are already in debt then speak to a Financial Advisor about debt consolidation and other options.
Get astute financial advice
It is clear already that the help of an astute Financial Advisor should be one of your first essential financial habits. You will be surprised to find that we at Hereford Group are not interested in just selling financial products. Our goal is to assess your specific circumstances and create a holistic wealth portfolio – that protects you and your wealth – and caters for your present needs and your retirement future.
Connect with us to set up a no-obligation consultation so we can begin to maximise the benefits you have gained from your good financial habits – and attain your financial freedom!