WAY TO FINANCIAL BREAKTHROUGH

Pathway could be described as route, a system, a method or a process of achieving a giving task or assignment.

FINANCIAL FREEDOM

This refers to the ability to be financially self-sufficient. The ability to be in control of your finances. Combining the two phrases together gives us a clear meaning of the subject of discussion. That is; pathways to financial freedom mean the process, methods or ways of achieving financial self-sufficiency or be in total control your financial life. In other -way pathways to financial freedom could also mean what could be done to ensure that financially you are not under tension or pressure or stress.

WHAT DO I DO TO GAIN FINANCIAL FREEDOM

To be free from debt and to have what is sufficiently enough to meet your need; the following recommended steps should be taken.

1. BE WILLING, READY, AND ABLE TO TAKE FINANCIAL RESPONSIBILITY

Are you   ready to   accept responsibility for  changing your financial situation? Do you believe that you can and will change the way you make financial decisions? Can you identify at least one benefit you hope to gain by changing your money management behaviour?

2.ASSESS YOUR FINANCIAL SITUATION

Start your journey with a self-assessment designed to motivate you. Find out what is your current financial position. Use this simple quiz to help you assess your current financial situation. Complete the test by filling in always, some time or never. Then do the scoring at the end of the parameter provided to see how you are faring.

3.    CLEARING FINANCIAL CLUTTER

Clean up   your financial position by   identifying the following.

Wasteful spending.

* Area of financial stress. That is area   where you   have overloaded your finances and start cutting down.

* Check your debt profile and decide how to clean it up.

* Note the parasite.

* Check the direction of your spending: i.e. consumption or investment tended.

4. SET SMART FINANCIAL GOALS 

Before you think about setting goals, review the five parts of SMART goals.

S

A smart goal is specific.  It pinpoints something you want to change to achieve.

M

A smart goal is measurable. You can measure or count a SMART goal.

A

A smart goal is achievable. Setting goals too high can lead to frustration.

R

A smart goal is  rewarding.

Reaching the goal should be a reward for your hard work.

T

A smart goal is trackable. Set milestones and schedules for your goals.

5. SET A TIME FRAME FOR YOUR GOAL

Set short-term, mid-term and long-term goals

Personal financial goals will differ in the length of time needed to achieve them. Short-term goals are priorities that can be accomplished within two years. Be sure every goal has a specific purpose, an amount that it will cost, and a realistic target date. Mid-term goals are priorities that can be accomplished within two to five years. Make sure your goals are realistic and flexible, if you set your goals too high, frustration will keep you from reaching them. Long-term financial goals are priorities that may take more than five years to accomplish. Most long-term goals require regular savings.

6.    PREPARE    FOR EMERGENCY

Expect the unexpected. Unfortunately, bad things sometimes happen to good people. In fact, bankruptcy filers often site an "unforeseen" event as the cause of their financial demise. In addition to long-term savings, financial experts agree that consumers should aim to have three to six months living expenses saved for emergencies. By learning to expect the unexpected, you can keep a minor financial setback from turning into a major financial crisis.

7.    SECURE    YOUR FINANCIAL FUTURE

Don't despair if you are behind on your retirement goals. If it is any consolation, you aren't alone; studies show many households are not adequately prepared for retirement. Here are some things to consider when assessing your retirement savings: Take advantage of available resources.

Participate in your company's retirement plan, particularly if they have a "matching funds" program. Not participating in this type of program is literally leaving money on the table and passing up significant tax advantages. If a company program is not available to you, consider establishing an Independent Retirement Account (IRA).

Seek professional guidance. A trusted planner can help you to determine the amount to withhold. They can also help you determine your tolerance for risk and map out a comprehensive strategy that will bring you closer to your financial goals. Take an active role. When you enrol in a retirement plan, you spend time researching your investment options in order to make informed decisions. Yet most people fail to actively manage their accounts by rebalancing their allocation of assets when market conditions change. Rebalancing your portfolio every year to keep the percentages where you want them is the key to maximising returns and minimising risk. Also, if you have experienced a raise in compensation, consider increasing your retirement savings. Finally, avoid cashing out early. Remember, if you withdraw money from your RS A, you will have to pay tax. In addition to providing your family with the basic necessities of life, you may feel responsible for their overall financial well-being. One of the best ways to care for your family is to be sure that you are prepared if something were to happen to you or another member of your family.

Perform a health insurance checkup.

Find out exactly what services are covered and learn what preventive services are offered while performing your health insurance check-up. Ask if there limits on medical tests, out-of-hospital care, mental health care, and prescription drugs. Research your premiums and co-payments. Explore the difference in cost between using doctors in the network and those outside it. Find out if there a limit to the maximum you would pay out-of-pocket. If you do not have health insurance,' seek assistance from Medicaid or your local state-sponsored plan.

Perform an auto insurance check-up.

Auto insurance pays for damages, injuries and other losses specifically covered by your policy. Most states require vehicle owners to purchase liability insurance, which covers bodily injury and property damage. Read your policy carefully while performing your auto insurance check-up to know exactly what it covers Pay special   exclusions.