The Financial Advisor: How to Become Financially Free

The Financial Advisor: How to Become Financially Free

How to Become Financially Free

Have you planned well? Are you on target for all the things you dreamed of? If you haven't planned, but you've made that decision to become financially free, let's have a look at what things you need to do.

1. Have you done a stock take' of where you are at . . . RIGHT NOW? Do you know what you earn, what you spend, what your assets are worth and what your liabilities or debts are? Once you know this, you can move on to your next step.

2.What is financial freedom to you? Is it a certain amount of money, so you can do anything you want? I measure financial freedom by knowing that I can do what I want to do, when I want to do it. That's the way I do it, but you might be different. Everyone's views and dreams for their future can be very different.

3.Protect yourself in case anything goes wrong. Buy insurance if you need it. Buy it in any areas that you and your advisor have identified. The key to this strategy is that as you get rid of the debts and start building wealth, your need for insurances diminishes dramatically. You can reduce the level of coverage as and when you want to ... its easy!

4.Once debts have gone - start investing. Investing is all about saving and keeping, but not saving and spending. A solid, conservative, retirement plan (or plans) is the first step to building wealth . . . this is your safety net should things go wrong. This should be locked in' and not able to be touched. I believe that these plans should be very conservative in their investment style (that's what I do). You can get aggressive with other types of investing.

5.Growth investments for the medium to long term. Investing in some shares and property is essential for long term growth and don't panic if you have a dip in value! If you've invested wisely and properly allocated the money, you'll be fine. Knowledge is the key here. I wouldn't invest in anything I didn't understand. If you are using an advisor, make sure you have clear explanations as to what you are investing in.

6.Have a small amount available to go into the High Fliers'. This is the boom or bust part to your investments. They can either be spectacularly good or spectacularly bad. A key here is to have more than 5 different investments that you work with. And, as I say, they can provide a spectacular return (you just have to find them!).

You can become financially free . . . you just need to work at it and get the knowledge!

For more financial tools, easy-to-use money calculators, and free financial advice visit Barry Kloogh at http://www.TheMoneyCookbook.com?money_tips. Barry Kloogh is the author of The Money Cookbook, and a top finacial advisor with offices in Dunedin, New Zealand and the United States.

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