Assessing Your Current Financial Situation
If you haven't already read our page about Financial Freedom. Are you wanting to improve your financial situation? Not sure where to start? Well you've come to the right place!
1. Have You Pulled Your Credit Report Within The Last Two Months?
- If the answer is no, then we recommend pulling your credit report. Most credit card companies now offer a monthly credit report for free. You can also use Websites like Creditkarma.com to get your free credit report. Don't worry pulling your credit report won't hurt your credit score. Start off by reviewing your debt accounts on your credit report to make sure they're accurate. If there are any incorrect items on your credit report you can dispute these with through the 3 credit reporting companies.
2. Do You Have Any Financial Goals?
- On your path to becoming financial independent it's important to have your financial goals listed out. When setting financial goals make sure they are reasonable and obtainable. Setting unrealistic goals will most likely demotivate you. Start off by listing your long financial goals first. Make sure when creating goals you are specific as possible. After creating your long-term goal, create smaller/shorter-term goals to obtain your long-term goal.
Financial Goal Setting Example:
- Retire At The Age of 55 With a Net-worth of $2.5 Million in Today's Dollars.
- Annually contribute $18,500 towards 401k and $5,500 for Roth IRA.
- Create and follow a budget that's allows me to meet my annual contribution goal.
Do You Have A Budget and/or Debt Reduction Plan?
- If you're wanting to achieve financial freedom, having a budget and debt reduction plan(if you're in debt) is a must. Planning is a big part of becoming financial independent.
Have You Started Planning & Saving For Retirement?
- Knowing what you plan to spend in retirement, retirement age, and taxes are just some of the factors that go into planning for retirement. It's never to early or late to start planning for retirement.
2. Understanding Your Current Financial Situation