The Map to Financial Freedom

Five signs that you’re in a financial coma.

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 needs and wants. 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 not 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 apps like Goodbudget or You Need a Budget. 3. Are you a glass-half-full kind of person, certain that you’ll smoothly navigate life’s twists and turns? You’re being naive. We all need money in the bank. Whether you suffer a job loss, a divorce or any other financially challenging event, a rainy-day fund offers refuge. Open a high-interest account or a 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 help you weather the storm.

4. Do you confuse RRSP (registered retirement savings plan) with RSVP?

How about TTYL with TFSA? If you feel like you don’t have either the knowledge or the money to invest, it’s time to get smarter about money. Boost your financial IQ with resources like The Fairer Cents podcast or Vicki Robin’s 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.