Eight Steps to Financial Freedom: Inspired by Mr. Fitz Villafuerte

Eight steps to financial freedom

I am very much inspired by all these finance bloggers: Mr. Fitz Villafuerte, frugalhoney, thinkpesos, and personalfinanceapprentice.

In the past, I was earning a considerable amount of money but could not save much. After earning, my money seemed to be gone in an instant. These posts are all about my experiences as a young professional who is hoping to handle money more wisely. I hope you can learn from them!

Know your cash flow and make a budget.

How much do you earn monthly?

I assessed all my sources of income and created my own budget. Savings should be on top of my budget list.

Open a savings account.

Now I’m done opening my savings account. Yes, this is different from my payroll account. Why so?

I know that I get impulsive at times. So the best thing I could do was to open an account that’s different from my payroll account. I opened a BPI ATM savings account. I know this is not the best choice. But for a starter like me, this idea is not that bad.

If you are serious about growing your savings, I suggest applying for a passbook savings account as this is not as tempting as keeping an ATM-based account. I suggest the BPI Maxi-Savers or BDO passbook savings.

Grow your emergency fund.

Thanks to Mr. Fitz Villafuerte. He gave advice as to how much I can allot for my emergency fund. Ideally, a 3-months’ salary worth of savings would be a good start. I’m still on my way to growing this emergency fund.

Pay off all your debts.

I have some credit card dues. I should make an action plan as to how I can pay off my debt bit by bit.

Plan your business/other sources of income.

I’m thinking of having my own website, business, online store, or whatsoever. I know that this takes a lot of planning (and of course a capital), so the best time to start is now.

Diversify.

Don’t just stick with one income source. Having two or more sources of income is better. Don’t just think that your job is the best. Keep looking for more possible jobs that would generate higher income.

Keep growing your savings.

My target for this year is 100,000. This may sound big, but with discipline, I guess I can grow this amount of money.

Grow your assets.

This includes buying assets such as a house, lot, and a car.

If you follow these tips, you can surely get out of debt and gain financial freedom.

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