Ways to Achieve Financial Freedom
As discussed previously, there are many different ways to reach your financial goals. Below is a concise list of the various resources that can assist you on your way to achieving financial freedom.
Resources That Can Help You Reach Your Financial Goals
Financial Freedom Resources
Savings Accounts
Usually offering higher interest rates than standard checking accounts, savings accounts can be a great location to store money for emergency savings and long-term financial goals.
Money Market Accounts
These accounts usually come with a debit card and check writing privileges and pay higher interest rates than traditional savings accounts, but have many restrictions. These restrictions can include minimum balance requirements, a maximum of six transfers or electronic payments per month due to Federal Reserve Regulation D, and other assorted fees.
High-yield Savings Accounts
Similar to a standard savings account, high-yield savings accounts typically offer interest rates that are 20 to 25 times higher than those of normal savings accounts. This can be a great place to save up for long term purchases, however, the tradeoff is that many institutions that offer these accounts are only online and may have minimum balance requirements and other assorted fees.
401(k) Investing
These investments are through your employer. Many companies even offer to match your contributions to the 401(k) up to a certain limit, so it is important to max out your deposits if you can afford it.
Stock Trading
When you buy stocks you have small ownership in a company and your returns are measured by that company’s financial success. You can buy and sell stocks on the open market for either long term or short term investment.
Treasury Securities
These are investments in the form of bonds that are backed by the U.S. Government. They generally mature within 2 to 10 years, though there are longer treasury bonds that can take up to 30 years to reach maturity.
Certificates of Deposit
Many institutions allow for certificates of deposit compensating you with a higher interest rate in return for agreeing to keep your money in the institution for a certain period of time.
Real Real Estate Investments
Many investors opt to purchase residential or commercial property and receive monthly rental income from these investments. Real estate investments are smart because, over time, the value of the property will almost always increase, plus you receive a monthly income.
Another popular method investors use is buying fixer-uppers, completing the repairs, and selling for a profit.
Monitor Your Assets
In addition to the investment resources listed above, it is also vital to have a savings plan and an effective budget to reach your goals. While in the past, many people would keep track of their finances using notebooks and loose sheets of paper, in the modern world, the power of the internet can help keep track of and categorize all of your expenses and savings goals.
Many banking institutions even offer automatic budgeting tools to help make budgeting even easier. Alternatively, there are many third-party apps and software that will sync every transaction from your banks and put it all into one place.