I believe there are 4 elements to learn, that will allow for great financial freedom. To help me remember these, I just think to myself.. "REIR."
1-Reduce Spending.
2-Eliminate Debt.
3-Invest.
4-Reward Yourself.
Every decision I make involves all 4 of these elements. Every dollar I can save today, can be something much more valuable in the future. I recommend getting a copy of Dave Ramsey's Total Money Makeover for a much more detailed approach to financial freedom.
I see Reward Yourself is last. Are these in descending order of importance?
ReplyDeleteNo, I feel these should all be balanced. Don't over-focus on one element and forget the rest. If you get a small raise at work, pay off a small debt, or even find a way to save money every month on a bill, you need to reward yourself. Even if its something as simple as eating at your favorite restaurant to celebrate.
ReplyDeleteI really like that, REIR. That is a great idea and acronym.
ReplyDelete