Developing a Plan of Action for Financial Freedom

Achieving financial freedom starts with forming a plan of action before anything else. This must happen before you try to start earning more money, before getting out of debt, before controlling spending, before anything else.

In other articles, I’ve mentioned that financial freedom and personal wealth building can only happen on purpose. This is why you must have a plan for achieving this freedom if you want to have any hope of succeeding.

This article will give you a sound strategy for developing your plan for achieving financial freedom.

Your Plan Must Fit Into Your Life

Your plan for achieving financial freedom has to fit into the context of your everyday life, taking all things into account: your need to maintain physical health for the sake of focus (and for avoiding high cost medical bills), your relationships, your career goals…all of it.

Many times, a lack of control of balance in your financial life is due to challenges in your life. For example, being unhappy with your career can cause excessive spending for the sake of making up for the happiness and fulfillment which is missing at work.

Having poor relationships with people who are financial irresponsible can also have a negative effect on your financial situation. So as a part of your plan, here are some things to ask:

• What kind of relationships will help you and inspire you to achieve your freedom?

• How can you improve your physical health to create greater capacity for focus, willpower and for avoiding high cost medical expenses?

• What career path will inspire you to work hard and with the passion which will give you opportunities to earn more and to keep more of what you earn?

Set aside some time over the next three days for answering these three questions and for coming up with a plan for getting these areas in line. This will make it much easier to commit to your plan for achieving financial freedom.

Building Your Plan: Creating Your Spending Categories

Achieving financial freedom starts with controlling your spending, which is easy if you have your priorities set up in four categories which will make it simple for you to allocate your income. This “four bucket system” might consist of the categories:

1. Investing 10%

2. Giving 10%

3. Expenses 70%

4. Cash Reserves 10%

Keeping your spending in this order of priority will ensure that investing in your financial freedom takes precedent and will prevent living from paycheck to paycheck. This, coupled with a good balance in your health, relationships and career will give you a solid strategy to commit to for achieving your freedom.

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