As the year ends, you are probably like me, reflecting on what you did and didn’t accomplish this year. But now it’s time to finish the year strong. Here are my top tips for putting yourself in a position to become financially free and stay that way.
1. Overcome Financial Anxiety Once And For All
Ignoring my finances only put me further behind. The moment I faced the situation, I was able to devise an action plan. But financial anxiety can cause you to ignore your financial situation and stall out on reaching your goals.
Anxiety is worrying about a future situation. Financial anxiety is worrying about your future financial situation, and it can take a heavy toll on your mental and physical health. Faith, tracking, upskilling, and entrepreneurship have helped me turn my financial anxieties to financial security.
2. Read Books That Will Motivate You Along Your Journey
There is so much to be learned about personal finance that it can be hard to determine quality sources. I have found several books that have been extremely helpful to me in my journey. I even started a monthly book club to meet with others on the path to financial independence. Here are a few of my favorites.
“Think and Grow Rich: A Black Choice by Dennis Kimbro and Napoleon Hill”
This book combines Napoleon Hill’s law of success with Dr. Kimbro’s secrets of successful Black Americans in this riveting book that will change your mindset around what you can accomplish.
“Your Money or Your Life by Vicki Robin”
This book helped me believe that I could become financially independent. I just didn’t think it was possible for someone like me who came from a lower socioeconomic background. I was wrong and this book gave me the motivation I needed.
“Quit Like a Millionaire by Kristy Shen and Bryce Leung”
If you are looking for a no-holds-barred book on how you can quit your 9-5 as a millionaire, this is your book! Kristy doesn’t hold back on explaining how she grew up and what she was raised to think was success. Kristy and her husband retired in their early 30s to travel the world.
3. Create A Financial Independence Retire Early (Fire) Plan
Is it even possible to become financially free? Is it possible to have all your expenses covered from passive income streams (real estate, business, stock, bond, or equity investments)? Yes, it is possible if you live on less than you make and invest aggressively. Not everyone is in a position to be able to do it, but many of us who make average salaries or more can do it.
Don’t look down upon yourself if you don’t yet feel prepared for retirement. Many people begin investing in their 30s and 40s and retire comfortably. A 2021 survey conducted by Personal Capital reports that 42.4% of first-time investors were between 31 and 45 years old (800 respondents).
You can start today.
Every dollar has a chance to grow compound interest, so never think a small amount doesn’t count because it does. Just start! I hope these three things help you on your path to financial freedom.
Personally, I started tracking my financial journey with Personal Capital’s free financial tools. I linked my savings accounts, checking accounts, credit cards, 401(k)s, and other financial accounts. These free tools have helped me track my expenses, analyze my investments, and give myself confidence in my early retirement plan.
Featured individual is a paid spokesperson and not a client of Personal Capital Advisors Corporation (“PCAC”) and does not make any endorsements or recommendations about securities offerings or investment strategy. The content contained in this blog post is intended for general informational purposes only and is not meant to constitute legal, tax, accounting or investment advice. You should consult a qualified legal or tax professional regarding your specific situation. Keep in mind that investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money.