What Are the Nine Steps to Financial Freedom?


Quick Answer

Some of the nine steps to financial freedom include saving a small amount at a time, having more discipline in spending, paying bills automatically and taking advantage of company match contributions with 401k plans, according to Oprah. The other steps, as created by Suze Orman, include investing in a Roth IRA, putting money in stocks, getting life insurance, creating a power of attorney document and paying off mortgages.

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Full Answer

One of the top steps for reaching financial freedom is to start saving money, even a small amount at a time, explains Oprah. Suze Orman recommends having enough money saved to live on for at least eight months with no other income or to have enough money saved for a down payment on a new home. While this seems like a lot of savings, she suggests having a small amount of money transferred to a savings account each week and allowing it to accrue interest.

Another step is to start practicing self-discipline and remove all unnecessary charges, notes Oprah. This includes getting rid of things purchased only as wants and sticking to only the needs. Another good idea is to start automating bill payments and savings transfers. By paying bills automatically instead of manually, individuals avoid late fees from not paying the bills on time.

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