How a Budget Can Create Financial Freedom in 5 Ways

Financial Freedom
create financial freedom

Know Where Your Finances Are First

Since the most important aspect of financial freedom is no or low debt, I will start with debt.

There are those who are in horrific debt and they don’t know it, as high debt is a major robber baron of financial freedom – it is important to understand it’s implications. The main reason is because they don’t know what high debt is.

They have somehow gotten the wrong message about money and debt. They feel the more debt they have, the more money they have. Well, I am here to tell you that the more debt you have, is simply the more debt you have.

If you don’t have enough money to pay your debts every month, that is a sign that you have too much debt for your income. If you are making your debt payments, but it is difficult to pay your debts, you still have too much debt, and need to find ways of getting your debt down.

Low debt is one of the five major factors credit reporting agencies use to determine a high credit score. A high credit score is important because it saves you money when you get loans. The better your credit score, the lower the interest will be on your loans, in some cases, you may not get a loan at all, if your credit score is too low. One way to start down the road to financial freedom is creating a scripted budget.

Write 5 Steps to Getting What You Need to Start a Scripted Budget

Write down the most important things you need immediately. Then, write down the things you need long term. Examples of immediate things you need may be 1. pay off student loans in 3-5 years, 2. purchasing an affordable car after paying off student loans, 3. saving for an affordable vacation after doing number 1 and 2.

Then you will concentrate on long term goals, like finding a higher paying job after you get experience or getting an apartment or home in a better neighborhood.

Write 5 Steps to Getting What You Want in a Different Scripted Budget

Write down what you want short term, but is not necessary. Then ask yourself if you really want it and what feeling you will have if you get it. Then write down a budget and stick to that budget for everything you want.

It is imperative to create and stick to a budget with your wants, since wants sometimes to become emotional and emotions create an easy window to overspend. Example of wants are 1. a new dress for you cousins wedding, 2. going out of town for the weekend by plane to a friend’s graduation etc.

Use the Top Three Steps from Your Budget Scripts to Meet Your Goals

Of the five steps, you write down for both needs and wants, focus on the top 3 on each list. Focus on those top steps with laser precision. Narrowing your focus to the top three and the top 1 on your list will make it easy to make your goals in your time frame.

It will also make it easier to do. Many times, people give up because they feel the task is too hard, this comes when the task feels too overwhelming, the focus will relieve you of the overwhelm feeling.

Every Month Analyze Your Steps and Decide What You Need to Change in Your Budget

Somethings you do will work well, some won’t work at all, and as you use your current list you will also find better ways of meeting your goals. Because of this, you will change your steps by rearranging them or rewriting them.

Look at this article as one of many lessons in financial freedom, the more conscious you are about your budget, the more likely you will achieve financial freedom in the future. If you feel you have financial freedom now and you don’t live within scripted steps, as recommended, it would be wise to start so you can remain financially free.

Media propaganda to buy products we don’t need confuses people into thinking they need them, they buy them, then they get deeply in debt. Don’t allow yourself to be defined by product propaganda, but instead use conscious scripts to achieve low debt.

Use this planner to get started right on the road to financial freedom.

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create a budget for financial freedom

About Lois Center-Shabazz

Lois Center-Shabazz, aka MsFinancialSavvy, is a Money Strategist specializing in helping others with Mega-Money Management through what she calls the Money Trio of Guerrilla Budgeting | Sane Savings | Investing Insights. Visit the top toolbar of MsFinancialSavvy.com and schedule a discovery session with Lois. She is also a nature photographer (www.arbazz.net), acrylic painter (www.artbazz.com), and has an online calculator website at www.livericalculators.com. Lois is the author of the Live Rich Save Money! series on Amazon Kindle.

8 comments on “How a Budget Can Create Financial Freedom in 5 Ways

  1. I actually like budgeting. It allows me to have a clear understanding of how much money I have and where it goes. I totally agree with long term vs. short term goals, and having a clear path to get there. For example vacation vs. retirement or a new car. Thank you for sharing your tips!

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