On a recent sit down with Jeffery Baxter Jr, he gave his professional advice on how to achieve financial freedom. Jeffery outlined 7 major keys that are vital in helping anybody get their life on track and make the right financial decisions. His 7 keys to financial freedom are listed below.
Key # 1: Don’t Spend More Than You Have
This may seem like common sense, but it is a difficult step for many people to follow. Always have a good idea of how much money you have available to spend, and make sure to keep your purchases below this number. Jeffery suggests checking your account on a regular basis and setting up a budget so that you don’t end up spending more than you actually have
Key #2: Be an Investor, Not a Consumer
Once you spend money on items to consume, you have parted with it for good. However, if you put your money into investments, you can turn it into more money down the line. You should view your money as something that can grow rather than something that should be spent. This will ensure that your funds don’t slowly dwindle away.
Key #3: Pay Tithes to God’s Kingdom
Jeffery believes that tithing should be a priority in your life. This means to give 10% of your income to your local church to help them with their operations and charitable acts. Not only will this teach you to budget your money, but it will help you become a better person in the long run.
Key #4: Get Rid of that Expensive Car Note
You may need a car to get around, Jeffery advises against spending excessive amounts of money on a car that you can’t afford. As long as you have a functional car that gets the job done, you shouldn’t worry about status symbols or egregious luxuries. These are frivolous expenses and you are better off saving or investing the money for long-term gains. A car begins to depreciate the moment you buy it, so try to minimize your automobile expenses from the start.
Key #5: Cut Up Your Credit Cards
Credit cards have long been a cause for financial burden on many families and individuals. You should not be buying things on credit that you would not be able to afford with your current amount of cash. The best thing you can do is get rid of your credit cards and only spend the money that you have.
Key #6: Always Have 6 Months’ Worth of Living Expenses Saved for Emergencies
You never know when disaster could strike or when you could lose your job. According to Jeffery, you should be sure to have enough money saved to survive for 6 months while you get back on your feet and find a new job.
Key #7: Don’t Try to Impress Other People, Buy What You Can Afford
You will be far more successful if you forget about what other people think and focus on your own financial freedom. Only buy the things that you need and wisely budget for the things that you want, making sure not to go overboard. Your ability to save and earn money will be far more impressive than any superfluous big-ticket item that you can purchase.