Your Map to Financial Freedom

What does financial freedom look like for you? Is it hiking through the Himalayas, putting the kibosh on trading time for money or Playing with FIRE (Financial Independence Retire Early)? Find out if you’re slipping into a financial coma or on the path to #financialfreedom.

1. Are you living paycheque to paycheque? Do you rely on credit cards to support your lifestyle? If you answered yes, it’s time for a #debtdiet. When it comes to everyday expenses or splurges, only you can make the call between wants and needs. Ask yourself: can I afford to pay for it today? If you can’t, are you prepared to suffer through the debt hangover tomorrow?
2. Does the thought of making a budget trigger a panic attack? Money is never just about tracking income and expenses; it’s also a measure of how you feel about yourself. It’s time for a #mentalmindshift: budgeting is empowering. As you evaluate your spending habits, you’ll develop a better understanding of your money motivations. Keep your spending in check with Goodbudget or You Need a Budget.
3. Are you a glass-half-full kind of person, certain you’ll smoothly navigate life’s twists and turns? You’re being naive. We all need money in the bank. Whether it’s job loss, divorce, or anything in between, a rainy day fund offers refuge. Open a high-interest account or TFSA (tax-free savings account) and set up an automatic transfer from your regular account. It’s the easiest way to save three to six months’ salary to weather the storm.
4. Do you confuse RRSP (registered retirement savings plan) with RSVP? How about TTYL with TFSA (tax free savings account)? If you feel like you don’t have either the knowledge or money to invest, it’s time to get smarter about money. Boost your financial IQ with resources like The Fairer Cents or Your Money or Your Life.
5. Is #fomo draining your energy and wallet? Social media can overwhelm us with stories of friends clinking cocktail glasses and taking five-star vacations. Instead of lusting after their perfectly edited lives, consider the #realife backstory: unpaid credit card bills, mounting debt, and crumbling relationships. It’s time to figure out what makes you happy. Financial freedom is knowing you don’t need everything to have it all.

This article was originally published in FASHION magazine.