Ricochet News

Five steps to financial freedom

Apr 18, 2018
Five steps to financial freedom

Retiring comfortably. This is what financial freedom means to many people, but because everyone has unique financial dreams and goals, the term holds different meanings for different people.

Is it that you no longer have to worry about a roof over your head? Or perhaps it’s about sharing great experiences with your children or having the ability to further your studies?

Whatever it means to you, Monty Stephenson: Financial Executive and COO of bsmart, shares these five steps to help you on your journey to financial freedom.

  1. It’s not about luck

Let’s be honest, there’s a slim bit of hope in many people of one day winning a huge lottery to solve every money woe. Reaching your financial goals isn’t about sheer luck, it’s about determination and making a commitment to saving regularly.

  1. Save more than you spend

Have a candid look at your financial situation and then create a simple, realistic budget. Cut out those unnecessary costs and start implementing good habits, like automatic saving as soon as you get paid. Use every opportunity you can to save and start as early as possible.

  1. Make it fun

If you make a game of saving money, it makes the process more fun. Challenge a partner to see who can save the greatest amount in three months or who can cut the most costs. You can also pick a number like your ID and save R73, R120, R2 089 and R4 135. Set a savings goal, make it fun and reward yourself when you reach your goal.

  1. Beware of convenience

Do you love the cappuccino you get every morning on your way to the office? How about that takeaway lunch from the deli down the road? You still want to enjoy life but the cost of convenience quickly adds up, so work out what treat you can keep and what you can live without.

  1. Pay off debt

Debt is a huge source of stress and it makes it harder to save, so make it a priority to decrease debt as quickly as you can. When you have any extra money, like your annual bonus, don’t splurge but rather use it to pay off your debt.

“We’re living in tough economic times and this is why we never encourage our bsmart members to spend more than they can afford. Our focus is on educating our members to spend smart, save smart and live smart, to help them on their journey to financial freedom,” says Stephenson.