Expert Advice Tip Sheet -- Checklist For Financial Freedom -- OnlineOrganizing.com

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	Checklist For Financial Freedom

	By Ramona Creel

Feel free to use this tip sheet / checklist as you tackle your own ""do-it-yourself"" organizing projects. If you would like to REPRINT or DISTRIBUTE this information, please click here for reprinting instructions.

BE CLEAR WHAT FINANCIAL FREEDOM IS

financial independence doesn't mean living in the lap of luxury
it has more to do with liberty from monetary worries
no debt -- no credit card bills, car payment, or mortgage
a healthy nest egg for emergencies
expenses that are below your income
a steady habit of saving and investing
being frugal and deliberate about your spending choices
you don't have to work to pay the bills

CHANGE YOUR ATTITUDE ABOUT MONEY

the first obstacle to financial freedom is the way we view money
we place importance on income and material possessions
debt has become commonplace and even expected
money is really nothing but a means to an end
money is only worth the non-materials things it buys you
free time, security, freedom to enjoy life, the people around you
money is not evil or divine, it is simply a tool

DEALING WITH SPENDING LEAKS

financial independence is about value-based spending decisions
avoid impulsive spending (proactive rather than reactive behaviors)
make conscious decisions about how to invest your resources
clear up financial disorganization (interest charges, late fees, etc.)
pay attention to how and where we spend money
track every single penny you spend for a month
look at each expense and ask if you get a tangible benefit from it
ask if it is worth the time spent earning the money to pay for it

PAY OFF YOUR DEBTS -- NOW!

list out all of the balances you owe
make note of the interest rate charged by each
pay the minimum on all debts except the highest interest rate
pay as much as you can on the highest interest rate
when that card is paid, apply money to the next-highest rate
keep working your way down the ladder until all are paid off

REDUCE YOUR MONTHLY EXPENSES

decide which expenses are necessary and which waste money
start first with incidental expenses (sodas, snacks, magazines)
also consider larger expenses (housing, car, vacations)
ask if your money isn't better spent elsewhere
ask if you would get more benefit from other spending patterns

USE CREDIT CARDS JUDICIOUSLY

credit cards can build credit and consolidate expenses
but when used irresponsibly, they can drive you into debt
pay your cards off in full each month to avoid interest charges
don't use your cards as a quick "loan" for purchases
if you don't have the money, save up before making the purchase
be careful about annual fees for "rewards" cards

WORK TOWARD THE INVESTING HABIT

the goal is to live comfortably without having to work
compound interest learns money on capital and past interest
invest regularly, putting a set amount away each month
plan to invest for the long-run -- don't try to "time" the market
diversify by including many types of investments in your portfolio
protect yourself against loss by spreading your investments around
it's never too late to start

Copyright 2000-2009 Ramona Creel -- you are welcome to reprint any article, but you MUST include this resource box and a link to www.RamonaCreel.com.

Ramona Creel is Professional Organizer, NAPO Golden Circle Member, and the original founder of OnlineOrganizing. A former Social Worker, she has always enjoyed helping people find the resources and solutions they need to improve their lives. Ramona now travels the country as a full-time RVer, sharing her story of simplicity with everyone she meets. She leads by example -- having worked for more than 10 years as a Professional Organizer, and having radically downsized and simplified her own life as a full-time RVer. Ramona now considers herself a "Renaissance Woman" -- bringing all of her passions together into one satisfying career. As a "Virtual Organizer", she can create a customized organizing plan for your home or office. As a "Simplicity and Accountability Coach ", Ramona provides a proven program for making every area of your life a little bit easier -- perfect for those who want to make the time and space to focus on their true priorities. As a Professional Photographer, Ramona captures powerful images of places and people as she travels. And as a freelance writer and blogger, she shares organizing techniques, travel tips, and social commentary with others. You can see all these sides of Ramona -- read her articles, browse through her photographs, and even hire her to help get your life in order -- at www.RamonaCreel.com. You can also follow her on Twitter, check out her Facebook profile, and subscribe to her blog feeds.

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