Financial Advice, Financial Licteracy Daily

Making Money Requires Action | Money Habits to Help You Become Financially Free

man putting money in piggy bank

Financial literacy is very important to me because I know that a little bit of knowledge in this area can make a massive difference to the quality of our lives. The formula for financial freedom is not difficult: when your passive income from your assets exceeds your expenses you are financially free! But so many people don’t know what to do to change their financial circumstances, and making money requires action, as does reducing expenses, so they continue to live in financially difficult situations. 

That’s why I want to share with you some very simple steps you can take to develop excellent money habits that will help you become financially free. 

What is a good money attitude?

For any financial journey, we need to develop our money mindset. We have to believe that we can make a difference in our financial lives in order to set the goals and take the steps that will move us toward financial freedom. That’s why a good money attitude is so important. 

Dealing with debt or with unexpected expenses can take us out of that positively focused state. When that happens, it’s important to remember that we can all overcome financial setbacks and we can take steps to navigate debt. It simply requires a financial action plan and the dedication to stick to the plan, which again comes back to keeping your mindset focused on the positive steps you can take to reduce your debt, while you work the financial formula and increase the amount of money you can invest into the kind of assets that create passive income!

What is a personal financial action plan?

A financial action plan takes into account the bigger picture of your current financial state. It also encompasses your short- and long-term financial goals, as well as your risk tolerance for investing. 

To develop that bigger financial picture, you must look at your: 

  • Cash flow,
  • Savings,
  • Investments,
  • Debt,
  • Insurance,
  • And any other elements of your financial life.

With that information in hand, you can then build your financial plan by developing your personalized financial strategy to reach your short- and long-term financial goals. This must include a spending plan

I don’t like to use the word budget because it creates a negative emotional reaction, which isn’t supportive of a positive money mindset. Instead, I like to have my clients develop a spending plan that allows them to be very intentional about their purchases and the expenses they incur each month. 

>>If you would like to learn How to Create a Spending Plan CLICK HERE.<<

Additionally, your financial plan should include the goal to increase the number of assets you have that create passive income, which will move you toward the financial freedom you seek. 

The great news is that you can buy, build and create assets!

People are usually most familiar with the ones you buy or build, like real estate investments, retirement funds, stocks and so on, but many people don’t realize they can create their own assets by leveraging their intellectual property or creative ideas to build wealth.

There are so many things that you know how to do that others might not, which would be of great value to them. You may have been through a difficult situation and come through it successfully, That know-how can become an asset you create and sell to the people who need that expertise and support, thereby increasing your passive income! 

The more assets you have, the more passive streams of revenue you can enjoy, as your income builds until it exceeds your expenses. 

After you take all the steps for developing a financial plan, you just have to commit to taking consistent action. It is the consistency of your money habits that will help you become financially free. 

To further develop your financial literacy and to truly master your money, I encourage you to get my Money Mastery Financial Literacy Online Course. In it, I will guide you through every stage of the process for a building a financial plan that will lead to your next level of financial success.


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