To many, financial freedom seems elusive or even mythical.  Their daily struggles show the difficulties they face keeping afloat with their debt and current obligations.  Planning for future events, such as home ownership or retirement, can seem almost impossible.  Fortunately, there are methods for gaining financial freedom, as well as help available to get there.  These five steps can play a key role in gaining or regaining financial freedom.

Understand Your Earnings

Although it may not be possible to get better pay or a better paying job, it is a good idea to really understand what you are earning and where all your money is going each pay period.  Not only should you be aware of how much money is taken out for taxes, Medicare, and other federal deductions, you should also understand other deductions on your paycheck.  This includes taking advantage of the various programs your company may offer.

Some companies offer retirement savings plans and other investment opportunities that could be conveniently taken out of a paycheck.  These things should be thoroughly explored to determine the best option for you and your future needs.  A retirement savings plan can make planning for this event a little easier since it is taken out of your regular pay.  Other plans can also be beneficial and provide a more cost-effective method of taking part in savings and investment programs your company may provide.

Budget Everything

Many households have budgets that they plan their monthly bills and other finances, but often they omit a lot of the expenditures made throughout the month.  It is important to take the time to budget every penny that enters the home.  This can help minimize finding yourself unable to cover certain bills at the end of the pay period.  A thorough budget and detail planner of how the household spends their money can allow you to really understand where your money goes each pay period.  Not only should you factor in the household bills and grocery costs, but also your morning coffee or weekend ice cream.

It is claimed that Benjamin Franklin once said, “Watch the pennies, the dollars will take care of themselves.” Although this phrase may not have come from him originally, it still has a valuable message.  It is often an accumulation of little expenditures that make up the large deficit in the budget. Many people think that an occasional cup of coffee or treat while out is really no big deal. However, they can add up to a lot of money at the end of the month.  You do not need to get rid of these little extras you allow yourself because they really can be important.  However, you should provide a place in the budget to only allow yourself a set amount of money for these things to prevent overspending.


The best method for reaching financial goals and freedom is to save some money out of every paycheck.  After a budget has been created, it is a good idea to sit down and figure out where cuts can be made.  Even if those cuts are tiny, it can allow a few dollars out of every payment to be put into a savings account.  Although many places tell you that you should be saving a certain percentage of every pay to reach financial freedom, it may not be possible for everyone.  Do not get discouraged.  Even a few dollars out of every pay can add up over time.  If you choose an interest-bearing account, this can help increase those savings over the years. has some great tips and advice for saving money and planning for the future.


Investing is another great option for financial planning.  Unfortunately, many people do not understand the first thing about investing.  If your company offers investing options, such as a retirement account, you could be well on your way to building a solid portfolio.  However, this may not be enough to cover the things you want in life.  The best option is to consult a professional to help with building an investment portfolio.

There are a plethora of methods for investing.  This can seem quite overwhelming and confusing for many people just starting out.  Some investments can be quite risky but have high rewards.  Other investments may be safe but only offer a limited amount of payout.  Fortunately, with the internet, it is not difficult to learn about all the types of investment options available.  The Motley Fool offers a great guide filled with information about various types of investments and how to get started on these things.

Getting Out of Debt

A major hindrance to many people’s financial freedom is debt.  It is difficult for anyone to own a home, car, or various other major purchases without acquiring a loan to get them.  In addition, many people are under the belief that more credit cards help increase your creditworthiness.  Although there is some truth in that, they are still a major source of debt that can really diminish your ability to gain financial freedom.

Unfortunately, many Americans carry a lot of debt that can make it near impossible to keep a good budget, savings, or investment plan.  However, there are methods for clearing away this debt without the frightful endeavour of the bankruptcy court.  Debt settlement can be an option for many people who feel they are becoming overwhelmed by debt.

There are companies that can offer assistance with this process. provides information about companies that can assist with getting out of debt.

Gaining financial freedom can be a very difficult process to go through for anyone.  It requires a hard look at yourself and your spending habits.  It also requires making tough choices to get to where you want to be.  However, once on the other side, the pay off is enormous. It can help eliminate a lot of the stress and complications that often surround major life events. It can also make it less frightening to consider retirement when the time comes.


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