How to Begin the Path to Financial Freedom

When I talk to my students outside of class, many of them agree that financial freedom is a great goal. Unfortunately, when we continue the discussion, they don't know what they mean by financial freedom, and, even if they do know what it means, they have very vague ideas on how to get there. I have found the same thing when I talk to my clients, friends, and even my relatives. So here is what I tell people who ask me for advice.

First, get a goal. Don't try to get every goal at once. Focus on one. To get this goal, work through these questions. What area strikes you, as a person, as the most important area of your finances? What would you like to accomplish in this area? If you had all the resources you needed, how long would it take to reach that accomplishment?

Second, start small. Don't think you are going to make huge, world-shattering changes in an instant. It took you years to get where you are, good or bad, so changing yourself is going to take time. What do you think you can accomplish today? Can you keep it up? It is better to start with a simple change you can keep up than a large change that you will not be able to maintain.

Third, write the goal down. Write the goal down on something that you can carry with you at all times, like your wallet. Look at your goal often. Imagine how you will feel when you reach the goal. See yourself achieving your goal, feel yourself reaching that accomplishment.

Lastly, keep at it. Persistence is one of those attitudes that has far-reaching positive impacts. Not only will it help you reach your goals, but by being persistent you become a better person. This is because you are building your integrity, which starts by keeping promises to yourself.

As you get comfortable with working towards your goal, start working on a second goal, and then a third. Make a notebook of your goals, or a goal board. Put in your results, so that you can track your progress. Start putting every action into a plan to reach one or more of your goals. I promise you, you will be amazed at the results.

As you get comfortable with working towards your goal, start working on a second goal, and then a third. Start putting every action into a plan to reach one or more of your goals. I promise you, you will be amazed at the results.

Periodically review your goals, for they are likely to change as you change. You will grow as a person, and your goals will grow with you. This is not something to be avoided but to be embraced.

Once you start working towards your goals, then you can expand your vision to include a broad accomplishment like financial freedom. The reason you want to start with goals is that financial freedom is not suitable as a goal; it is a combination of goals. Financial freedom encompasses many aspects of your financial life, and also incorporates areas such as leadership, relationships, and personal development. Until you are comfortable working towards specific goals, you won't be able to competently work towards a combination of goals.