{"id":75445,"date":"2023-12-03T19:32:58","date_gmt":"2023-12-04T00:32:58","guid":{"rendered":"https:\/\/todaysveterinarybusiness.com\/?p=75445"},"modified":"2023-12-03T19:32:58","modified_gmt":"2023-12-04T00:32:58","slug":"financial-freedom-financial-wellness-1223","status":"publish","type":"post","link":"https:\/\/navc.sitepreview.app\/todaysveterinarybusiness.com\/financial-freedom-financial-wellness-1223\/","title":{"rendered":"Are You on Track to Financial Freedom?"},"content":{"rendered":"

As a new year begins, we encourage you to take a step back from the busyness of life and plan for your long-term financial freedom. Stop hoping for the best while constantly reacting to the circumstances around you. Instead, choose to be proactive and take control of your financial future. We recommend a path to help you get on track. Ideally, start the journey with a spouse or significant other, an accountability partner or a certified financial planner who acts as a fiduciary.<\/p>\n

Behavior Matters<\/strong><\/h3>\n

The primary driver of financial freedom is consistent, intentional behavior. Without those habits, you cannot achieve true freedom. It\u2019s about more than how much money you earn. Many people who win a lottery end up broke and miserable in a matter of years. Why? Poor behavior.<\/p>\n

Here are the five behaviors critical to financial freedom. How are you doing with each?<\/p>\n

1. LIVE WITHIN YOUR MEANS<\/strong><\/p>\n

Do you know what running your life costs each month? Do you know the specific number, and is it based on data? If you don\u2019t know the amount, you cannot plan with intention. Plus, the risk of lifestyle creep, or spending more as you earn more, can cause anxiety as you will have little to show over time. Online tools like Intuit\u2019s Mint (mint.com<\/a>) can help you easily track and categorize your spending. Review the numbers monthly and then work to eliminate unnecessary spending.<\/p>\n

2. SAVE SYSTEMATICALLY<\/strong><\/p>\n

You must save each time you get paid. To retire with dignity, stash at least 15% of your gross earnings into a retirement<\/a> plan. We are big fans of funding the Roth (after-tax) option in a retirement plan, especially if you are under age 50. If you cannot reach a 15% threshold now, commit to increasing your contributions by 2% each January. You\u2019ll likely never miss that money in daily life.<\/p>\n

After funding your retirement plan, establish an emergency fund by setting aside at least three to six months\u2019 worth of living expenses in a high-yield savings account. Then, plan for larger purchases by diverting money into savings (if the expense will occur within two years) or into diversified stocks and bonds (for mid- and long-term needs).<\/p>\n

3. AVOID DEBT<\/strong><\/p>\n

Frankly, if you can\u2019t pay cash for a purchase, you typically can\u2019t afford it. Therefore, develop the discipline to deny yourself the short-term gratification of impulse purchases, especially if you need to borrow for them. Please don\u2019t use a credit card if you can\u2019t pay the monthly balance. Instead, save for more considerable expenses. Credit card debt is a hole that is very difficult to climb out of.<\/p>\n

4. GIVE GENEROUSLY<\/strong><\/p>\n

We have witnessed firsthand with our clients and friends that those who give generously<\/a> tend to live more peaceful, satisfied, joyful lives. How much to donate and to whom is a personal decision. We believe we\u2019re all called upon to share our time, talent and treasures with others. We\u2019ve never met someone who regretted giving generously or who missed the money.<\/p>\n

5. SET LONG-TERM GOALS<\/strong><\/p>\n

The broader your perspective, the better your short-term decision making. Setting long-term goals is critical to financial freedom. It\u2019s also essential to align your goals with those of your spouse or significant other and to review and update them consistently. Taking short-term steps helps you achieve longer-term goals.<\/p>\n

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QUICK REFERENCE<\/strong><\/span><\/h3>\n

Take these basic steps toward financial freedom.<\/p>\n