I've been following an often heated debate regarding Mortgage Accelerator Programs. I'm a proponent of these programs for a number of reasons, but primarily because they provide a system to follow that eliminates debt and creates wealth. Systems are powerful because they take away the guesswork and allow decisions to be made from a position of strength.
That said, being debt free, even mortgage free, is not the same as financial freedom.
Being debt free does not mean that money is suddenly going to fall from the sky and solve all your financial problems. At the end of the day, even if you have no debt, you still have Putting food on the table, paying taxes and other fixed expenses are a necessary part of life.
Don't get me wrong, helping people find viable solutions to get out of their debt is what I do. That said, debt is only one piece of the puzzle.
So What is Financial Freedom?
Financial Freedom is the freedom to focus on what is truly important to you without having to trade time for a wage. It is driven by passive income producing assets, which generates sufficient income to cover your yearly expenses on an ongoing basis.
In a nutshell Financial Freedom means that you have both time and money.
How Do you Achieve Financial Freedom? There are really only two steps:
Step 1: Start with a system. Systems leverage all resources to highest and best use. A debt elmination system should:
- Be Flexible
- Be easy to Understand
- Allow for financial changes as they occur in life. An individuals financial needs are going to change over their lifetime. What is right for a 30 year old will not be right for 50 year old.
- Make sure that there is a cushion to cover unexpected expenses as they arrive. This can be in the form of cash savings or access to credit.
- Provide projections on
Step 2: If you have to buy something, only buy assets. Assets will either provide income or appreciate in value over time.
It really is that simple.
Kate Bourland is a Debt and Credit Specialist who creates customized Debt Solutions and wealth plans fore every client. Got Debt? I can help! Call today - 1- 530-419-3967.
How To Get Out Of Debt Blog
http://www.katebourland.com
Things to Do In Redding California
;)
;)
Hi Kate,
This is a very simple advise. But, simple doesn't mean easy to follow. Many people have heard of these principles, but are they following them? That's why it's good you write about it.