Being financially free is not always an easy feat to pull off. However, if you know what it takes and stick to your plan, then you and your family will be able to enjoy a long, prosperous life. When you have financial freedom, you are able to secure a future that you want to live without worrying about how to support yourself. With that, there are a few ways that can help you and your family achieves the financial freedom that you desire.
Creating a Trust
Being able to create a trust has many factors involved and can seem more complicated than any other ways to handle finances. But the good thing is that once the trust gets executed by the beneficiary, they will be able to live financially free after everything is said and done. So, what is the main purpose of a living trust? It is to allow you to live financially free. You need to remember that a trust is not just one legal document either. It requires you to submit individual forms for every account that you have assets in so that the assets can be accessed. Ideally, the submission of these other asset forms should be submitted prior to death.
As opposed to a will, having a trust drafted will not need to experience probate so there will be quite a bit of saving when the trust gets dispersed. When you have a will, the costs for execution come out of the estate itself so there will be less available.
When it comes to any contests, having a living trust will also be able to handle them better if any legal battle ensues over the assets. With a will, you need to consider the court costs if any contest of assets occurs while being executed.
When it comes to taxes or saving, there really is no difference whether you have a trust or will getting executed. However, savings may be seen among married individuals due to them being able to have a joint trust.
Determine the Required Amount
Being financially free requires an amount that will be able to sustain your life and then some. This means that you do not want to run out of money before the day you die. This may seem too complex for some, but it really is not.
Of course, the hardest part will probably be dedicating yourself to the savings plan. However, it is easy to determine the required amount. This is done by sticking to a predetermined percentage that you save from your job’s salary. Then, you’ll need to multiply that by 25 and you’ll have the amount needed to retire worry-free.
Keep Your Expenses Below the Amount You Earn
You need to learn to keep your expenses below the amount that you earn. A lot of people feel like they need to live lavish just because they make a nice salary. You will never get ahead for your future if you do this. You don’t really need the newest car or biggest house, do you?
Let your friends spend and waste all of their money while yours sits in the bank growing even more. Once you have learned to live modestly, you will appreciate everything differently and see everything in a new perception.
Now, we are not saying to become a scrooge or deprive yourself of happiness or to live miserably. Just keep in mind that it will take years (at least 15) before you will be financially set.
Try to concentrate on being happy and paying for items that help you to remain happy as opposed to living extravagantly.
So What Are You Waiting For?
Achieving a financially set future can be accomplished by anyone and all you need to do to get started is to have the dedication and will to succeed. Once you have the foundation set, begin to set aside a percentage of money, and refuse to live outside of your means, you will be able to obtain more freedom to:
- Travel with no worry
- Discover more of what you love such as a hobby or specific interest
- Not having to worry if you’ll have enough should an emergency happen