Before you can find anything you must first know what you are looking for, and finding financial freedom is no different. When I was in college, many years ago now, I received a free membership to a video rental store. A friend and I took off in the direction that we "thought" we should go. We knew where we wanted to go, but didn't know where the store was. We drove, and drove, and drove but we never found the place.
Finding financial freedom is much like that; you must know what it is in order to know if you have found it. So what is financial freedom? A street reporter asking that question would get many different answers. Therefore, lets start with just the concept of freedom. William Wallace from the movie Braveheart would say that freedom is giving up your life for something or someone else. Others would say that freedom is living a life not needing anyone or anything. And still others would say that freedom is living free from oppression and communism.
As you can see there are many different definitions - and you must find your own. Most would agree that finding financial freedom can be defined as, "Being free from financial bondage and being able to pay all the monthly bills while at the same time saving something for the future."
The Five phases of Finding Financial Freedom
Discovery Phase
The first step in the discovery phase is setting financial goals. This is discovering what you want to accomplish - your road map. Once again, if you don't know where you are going then how will you know when you get there? The second step is to begin seeing the real issues. In other words, discovering what is happening in your financial life right now. To do this you should make a list of your: assets, current household expenses, and current short-term and long-term debts. Knowing where you are will help you get to where you want to be.
Tracking Phase
In the tracking phase you begin to do just that - track what you are spending. Actually, you begin tracking all income and spending - this will tell you just what is happening, no lying to yourself here. You do this by developing a spending plan. This may sound to basic but I will assure you that if you begin tracking your income and spending you will be well on the road to finding financial freedom.
Adjusting Phase
Develop a financial blueprint is critical in the adjusting phase. This is a more detailed roadmap. A map that will help you focus in with laser-like precision on your financial goals. During the adjusting phase you lay out a plan of action that is detailed enough to get you where you want to go.
This could be compared to a builder building a house. Doing so without a blueprint would get the house built, but what would it look like and how long would it stand when the storms of life come? That reminds me of a 3 Stooges show I saw years ago. The three friends (Moe, Larry, and Curley) set out to build a home for their three new wives. The fact that they didn't have a blueprint didn't decrease their determination. The end result was odd shaped doors, a roof that allowed the light of day and the rain of night in, and a bathtub nicely installed in the bathroom - but it was on its side.
Systems Phase
Systems are what you need to make sure you stay on track. Many have tried to find financial freedom but have come up short because they didn't have a good set of systems in place. One very easy system is the Envelope System. What you must realize is that temptation is a very strong force to fight. Many times you may feel like you are in the ring with the heavy-weight champion of the world and its name is "temptation." Having "cash money" set aside for each category in your spending plan will keep you in line and make you a financial champion.
Another system you need is a group of professionals that will help assist you on your financial journey. You must realize that you can't do it alone.
Future Planning Phase - this is why we started the entire process
During this phase you look out into the future and begin to organize your estate, plan for retirement, and put things in place for your children.
Many families have been devastated by the death of a loved one only to find more turmoil because a good plan was not laid out and financial records were not able to be found.
In order to find financial freedom you must take a deep look inside yourself and determine what you want your future to be like. Then...
Discover very practical and logical steps to get there.
Track your progress along way.
Make the necessary adjustments to keep you on track to your preferred future.
And realize that you can't do it alone and that you need the help of others to get there.
You can find more information about Finding Financial Freedom at http://www.FINDINGfinancialFREEDOM.ORG.
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