When Freeing up Money is Finally an Option (part II)

Posted on May 13 2009

You may be reading this either feeling overwhelmed that your financial freedom may never come or you may be one that can see the light at the end of the tunnel. If you are fortunate enough to see the day when you’re financially free you need to be prepared or you may find yourself right back in a financial mess.

Last month I touched on two very good options which included “Build a Reserve” and “Maximize your 401k” contribution.

A couple more options that you may not have thought about would be the Automatic Investment, a Celebration and Increased Giving.

1. Automatic Investment – As you have seen lately the stock market has not done so well. One positive though is that many people feel that now may be the best time to get into the stock market if they aren’t already. Needless to say, over the course of time, those that invest in the market usually make money. Some people think you need a large sum of money to begin investing in the stock market. This is not the case. A great way to enter the market is to open an account where a specific amount of money is drafted from your checking account and deposited into a mutual fund or investment. This is a convenient way to begin building wealth. One reason it works so well is that you can treat it like any other monthly expense within your budget. I like to look at it with the same importance as paying your utility bill or car payment. You should talk to a financial advisor to see what options work best for you. All investments have the opportunity to lose money so you should always be cautious with your investment strategy.
2. Celebrate – There’s nothing wrong with a celebration. You should have a good idea when your last creditor is going to be paid in full. Plan a party or a celebration. Obviously you don’t want to go overboard however you have worked hard and this is a great opportunity to share your accomplishments with those closest to or around you.
3. Increase Your Giving – For those of you that have not made a commitment to tithe or feel you could never afford to give to your community I would encourage you to take that step. This may be the most rewarding and biblical option as you begin your debt free lifestyle. Once again I would treat this with the same importance as any other monthly bill or expense. Build it into your budget. If you are hesitant, start small and begin to increase as God leads you. When you give to charity you become more sensitive to the needs around you and you take a stake in your community. There are many tremendous non-profits, charities and churches in your community.

You work hard to get yourself into a position where you are debt free. You don’t want to waste that opportunity and find yourself back in the same position you are today. Remember that financial success starts with a plan. Do you have a plan?