I am new to the blog. My goals are to create financial freedom for myself by 30. My biggest obstacle to creating financial freedom is controlling my spending habits. I have terrible spending habits. What information is out there to help people who spend without a conscious? I am good at financial planning. I started investing and to protect my money from my bad habits, I set up a ROTH IRA where I put most of my savings so that I don’t have immediate access to it. Thank you.
I’d recommend reading the book “Total Money Make Over” by Dave Ramsey. He has some pretty powerful stuff in there. It really turned my hubby and I around. I wonder what you mean by financial freedom if you want to reach it by age 30 and you have not so good spending habits right now. If I can understand that better I might be able to give better suggestions.
In the meanwhile that Ramsey book is a good start but the immediate solution to control your spending habits is to put yourself on a budget. Create one and then follow it along as the month goes by. Once you begin tracking where your day to day money goes you’ll be able to control it better. And the way to do that is to create not just a budget but one that you can keep updated frequently.
To me, financial freedom means that you are generating enough income from investments to cover your living expenses. That is, you no longer have to work. If you can get there by age 30, you are doing well.
I believe that one of the best ways to get financial free is by buying stock in quality companies and keeping them for the long run. Stocks like Chevron, Apple and Berkshire Hathaway come to my mind. Another thing, I would consider, but it is not something I have done, is to buy investment real estate.
At the same time, financial freedom means something different for each person. To me right now it means being able to pay my bills and feed my kids and sticking to my very limited budget. I have a 401k at work so hopefully when retirement comes I’ll be okay. Got a holiday saver account that will give me cash for Christmas shopping. Put some of my tax refund into a CD that will mature next August so I can take my kids to an amusement park and stay in a hotel instead of making the long drive there and back the same day. I can go to bed at night and not worry about how the bills will get paid, what my kids are going to eat tomorrow, or if we’ll be able to have any kind of vacation this coming summer. For right now at this time of my life this is my financial freedom.
To someone financial freedom means:
- Being able to provide my children with the best education that money can buy K-12 such as private tutors, homeschooling, or great private schools
- Being able to choose to stay home without having to worry about surviving on one income
- Being able to travel extensively with my kids without having to worry about money
- Having absolutely no debt: No mortgage, no car note, NOTHING
- Being able to invest in several charitable projects in Africa that build the infrastructure of the community: I would love to build educational institutions in Africa that improve the intellectual resources of the community
- Having several properties in New York, Amsterdam, Paris, and two homes in Uganda