The following is an excerpt from "Financial Freedom 101"  the e-book that can change your financial life.

 

10 Step to Financial Freedom: 

 

1.  Start with $1,000 in a beginning emergency fund, this will allow you to stop using your credit cards for emergencies. 

 

2.  Pay your credit cards off as quickly as possible, using the Debt Eliminator Worksheet on page 20.

 

3.  After you have completed steps 2 and 3, use the formula on page 52 to begin saving for your retirement.

 

4.  Have adequate life, auto, home, and disability insurance, in case of an unexpected negative financial event.

 

5.  Buy two-year old cars instead of new; you’ll save thousands of dollars over your lifetime.

 

6.  Become educated on house buying through counseling, learn before you buy.

 

7.  Save for college after you save for retirement, you can borrow for a college education, but no one will loan you money for your retirement.

 

8.  Learn the difference between wants and needs.  Our needs are food, shelter, transportation, and clothing.  Everything else is a “want”!

 

9.  Learn the “cost of opportunity”.  Opportunity cost is the process of choosing one goods or service over another.  Understanding that our choices have opportunity costs, and examining what those costs are, will help you make better financial decisions.

 

10.  Let the miracle of compound interest work for you.  See the example on page 5, #3.