If you’ve read the “About” page, you know that my training so far has been through Crown Financial. Crown’s goal is to see people reach financial freedom, defined by them as being completely out of debt and having no need to rely on a job for your income.
The reason I bring this up is because financial freedom is a good example of a long term goal that can be met through several shorter term goals. It is also something most people want to achieve! What follows are the steps recommended on Crown’s “Money Map”:
1. Begin using a budget and save $1000 in an emergency fund
2. Pay off all credit cards and increase savings to 1 month’s living expenses
3. Pay off all consumer debt (car loan, student loan, etc.) and increase savings to 3 month’s living expenses
4. Begin saving for major purchases (auto, home, etc.), begin saving for retirement, begin saving for children’s education
5. Buy affordable home, begin prepaying home mortgage, begin investing wisely
6. Pay off home mortgage, children’s education fully funded, confirm estate plan is fully in order
7. Retirement is fully funded, freedom to be more generouse with time and money
They strongly recommend that you fully complete each step before moving on to the next. You can find more information on the Money Map at Crown.org.
I want to be on the up and up with you people! I’m. . .only on step 3. And since I’m paying down my student loans, I’ll probably be there a good long time! What that means is I can give decent advice about steps 1-3, because I’ve lived them. After step 3. . .well, I’ve researched a lot on investing and such, but I don’t have real world experience. Yet!
