4 Principles of Financial Freedom

4 Principles of Financial Freedom

Independence Day is a great reminder of our political freedoms in the U.S., but it can be so much more than that. We encourage you to take a few moments to consider your financial freedoms. In honor of this holiday, here are our 4 favorite principles:

1. Spend Less than You Earn 

It goes without saying, but in order to be financially solvent, you have to spend less than you earn. It’s important to practice general principles of frugality, and strive to get the best value for your money. Living within your means is the #1 rule of personal financial and the best way to achieve financial freedom.

2. Borrow as Little as Possible

While you might need to borrow for a home, education or a car, it is important to borrow as little as possible — and discharge your obligations as soon as you can. If you can avoid debt as much as possible, you’ll be able to put more of your money to work for you, earning interest rather than paying it.

3. Think about the Future

It’s easy to get stuck thinking about the present, but remember, that it is important to prepare for the future. Considering building an emergency fund, contributing to a retirement account and setting up an estate plan.  Adequate insurance is also important if you are serious about protecting your assets and your family’s finances. Make sure that you are ready for problems, and that you can adequately provide for the unexpected financial problems that can so easily arise.

4. Give to Others
Part of well-round finances is giving. It may seem strange that giving your resources away can contribute to financial freedom, but it does. Whether you give to your favorite local charity, a national cause, or contribute to your church congregation, giving can be a stepping stone on the road to financial independence. When you plan to give to others, it forces you to look at your financial priorities, and to better manage your money so that you can “afford” to help others.
On this Fourth of July, reflect on our nation, our freedoms, and your personal efforts. Consider how you can improve your own financial independence. You might be surprised at what you can do to further your journey on the path toward financial freedom.
Investment advisory services offered through Cornerstone Wealth Group, LLC dba Cornerstone Wealth, an SEC registered investment adviser. Securities offered through Mutual Securities, Inc., Member FINRA/SIPC. This is for informational purposes only and does not serve as personal financial advice.