by Charlene C

Created on: November 25, 2009

It's easy to tell you how to become financially free if you are twenty-two years old, never had a credit card, and just scored your first real paying job after college. What about the millions of people that have already taken the leap into the world of debt and spending? They are trapped at the bottom of the money pit with shovels of bills knocking them as they climb out.

Pay yourself first. Financial experts around the globe offer this advice and many people refuse to listen. Does it really make sense to save money for yourself when you have a creditor calling your home every hour? Some people can not jump on board with the thought of saving money that they could use to pay off a creditor. Think of it this way. If you pay yourself the $50, $100, or $300 dollars right off top and stash it away then you will have that money when you get a flat tire or have to buy the unexpected flu medication. It's when you don't have even a little set aside for emergency situations that you turn to pay day lenders, family, and friends dig yourself deeper into debt. Pay yourself first.

Maintain excellent insurance coverage. That ranges from car insurance, mortgage or rental insurance, health insurance, and life insurance. The number one reason people bankrupt is because of medical bills that they can not afford. Having the right insurance to cover you when tragedy strikes is extremely important. It can be the difference between financial ruin and financial freedom.

Live within your means...duh. We all know that. You live within you means by not buying anything on credit and not using credit cards. What if you have already fallen into the credit trap? You immediately stop using credit and start paying off the cards. This is hard to do and you have to track your spending habits to determine what type of things you are purchasing and what is motivating you to buy things that you do not need.

The very first step to take to become financially free is to "keep it real" with yourself. Be honest with yourself about your financial situation. Open the bills and actually sit down and tally up how much you owe. If your income is more than your the money you owe then great! All you need to do is devise a plan to pay off those bills and create a realistic budget to help you maintain your spending. If what you owe is more than what you bring in then you to take a more aggressive approach. Your budget will need to be more strict and you may have to look into other ways of obtaining income. You may have to hold a yard sale, get a part time job, or even downsize your home.

Each financial situation is different. You have the key to your financial freedom and it begins with acknowledging your financial weaknesses and working diligently to overcome them.

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