Personal Financial Success [Steps to Reach]

get financially fit

Every person strives to be successful. Financial success is as important as success in other spheres of your life. It may not be easy to move ahead and build wealth but this is what so many experts and coaches teach today. 

What does it mean to be financially successful? What steps you should make to achieve it? There are special tips and tricks that are aimed at helping every individual get out of debt, build wealth, win in their personal finances, and just boost their financial wellbeing.

Importance of Financial Success

While thousands of people tend to live from paycheck to paycheck, not many of them understand they have all means to change this situation for the better. It’s good to have a steady source of income or a full-time job, but if you fail to make ends meet, you always need money and end up being in debt month after month, you should try new strategies. 

In this article, we are going to talk about such tactics and methods of gaining financial success. Being financially successful means you are independent to utilize your funds, you’ve got out of debt, and you make smart financial moves and decisions in terms of money saving and investing.

After all, the first thing you need to do when you find yourself in a hole is to stop digging. Many people just don’t admit they are in a financial “hole”. They keep on maxing out their credit cards, taking out new lending solutions, and wasting their cash. Thousands of people don’t have an emergency fund and a savings account to utilize for their needs. 

You should keep in mind that there is a difference between these two options. An emergency fund may help you when an unforeseen event occurs and you need to cover unpredicted costs. A savings account is the money you set aside for planned events in the future.

This article was created based on a YouTube video from H Cortez Springer. He is a financial health mentor and expert who gives proven financial advice. We advise you to watch his videos to know more details about financial health, but the content from the “Personal Financial Success” video is summarized in the paragraphs below.

How to Get Financially Fit?

Now that you know it’s important to improve the quality of your life and boost your financial wellbeing, it’s necessary to learn how to become financially successful.

There are special techniques and strategies you may implement in your daily life that will make your financial goals closer. If you want to become financially successful you have to start doing what financially successful people do.

  • Firstly, they understand that building wealth is team support.
  • Secondly, they understand the power of capitalism and business enterprise.
  • Thirdly, they love to use systems and leverage. Finally, they all have mentors.

It’s normal to ask for professional advice and hire a certified financial planner or advisor who will help you avoid mistakes and make your dreams come true. This way you will be able to get all of these things in place and transform your personal finances so financial goals.

The main reason why so many people struggle with their personal finances and often make financial mistakes is that they were not strongly educated on financial matters.

They make some mistakes in their 20s, then recover from those mistakes in their 30s and finally reap the harvest from those things that they had to recover from in their 40s. If you boost your financial literacy and get educated in this sphere you will make wise financial moves and decisions.

“It took almost all of my 30s to learn from my own mistakes, implement new strategies, and change my life,” states Milton Freeman, an entrepreneur and a founder of EFI Financial Education Services. “Some people believe that reading a few articles or listening to the podcast can improve their life instantly without too much effort but it doesn’t work this way.”

Steps to Reach Financial Success

If you admit you are in a financial hole and you are dedicated to climbing out of it as soon as possible, here are some useful steps to make:

  • Get self-educated. You can start by listening to relevant audio podcasts and reading updated materials to get more educated in the financial field to manage your existing debt. Also, it will help you repair your credit rating and be more familiar with various lending and financial options.
  • Implement new strategies in real life. The second step is to utilize the information you’ve acquired to your advantage. You should start doing what you have learned so that visible results and improvements come to your life. It will also bring more motivation to reach your aims.
  • Find your own path. There is no one-size-fits-all answer or strategy. Every person is unique so your goal is to renew your mind trying to soak up all the data that may help you. There is no one way to get rich and build wealth. It’s great to listen to success stories and get motivation from them. You should find your own way and approach that best fits your needs.
  • Maximize your financial capabilities. This is the best realization of the previous steps. Maximizing your financial capabilities means you realize that you are living in a capitalist society no matter if you are a low income or a high income earner. If you are working full-time you are still not maximizing your financial capabilities because you need a business to save as a tax shelter. It doesn’t mean you have to quit your current job but you may combine full-time employment with your own business.
  • Turn to professionals. Certified financial mentors and planners can help you a lot. Don’t hesitate to invest some cash to get expert advice and relevant recommendations on what you personally need to change or implement in your life to improve personal finances.
  • Stick to the budget. It’s essential to learn budgeting and saving. If you don’t know where your money is going you won’t be able to finance your needs and set aside some cash for the rainy day. You may write down all of your costs or use a spreadsheet while there are many useful online tools to help you learn money budgeting and manage your personal finances better.
  • Value your funds. “I want you to value your money. If you don’t know how to value your money think about what it took you to get the money and value that!” admits Milton. Remember your past, things you’ve learned since childhood that may have also affected your current life. Value what has brought you here and strive for a better future.
  • Find a side gig. If you feel you don’t have enough monthly income it’s much better to find another part-time job rather than take out one loan after another. You should avoid a vicious debt cycle and try to fund your needs from your own pocket. Getting a side gig will not only boost your income and bring you more confidence but also will give you more financial freedom and access to a better future.

Worst Financial Mistakes to Avoid

There are many success stories that help people stay motivated and change their lives for the better. For instance, Milton Freeman is a veteran personal finance coach, entrepreneur, and founder of EFI Financial Education Services. 

He provides solutions specifically aimed at working Americans. If you need assistance with your personal finances turning to such coaches and experts or just listening to their career and life path may help you find answers to your questions.

Bonus post: Read Expert Answers on How to Become Financially Literate?

Milton Freeman was introduced to financial services over 20 years ago and started learning about debt management. The main reason why he was attracted by this field was his willingness to eliminate his own debt and improve his financial decisions that weren’t perfect at that point. 

Once he could manage his own personal finances better and better he decided that he is ready to spread awareness among common people and help them boost their financial wellbeing as well.

He didn’t become successful in one day while he also made mistakes.  He wanted his career path in the financial field to be legitimate straight away so he got the necessary certifications to perform in front of the audience and cooperate with other organizations. 

“Having the credentials is what made me comfortable enough to do that and to talk with lots of people who had similar struggles I used to have,” says Milton. “The financial decisions I made in my youth caught up with me in my 30s so I had to learn how to fix them and take my money seriously.”

Here are the top financial mistakes you need to avoid, according to Milton:

  • Not having an emergency fund. This is one of the most common mistakes people make. They live paycheck to paycheck and don’t have any money set aside for an emergency. It doesn’t mean you should think about bad consequences or unforeseen costs. However, modern life is unpredictable so being prepared for its curveballs is essential. Your emergency fund differs from a savings account. This fund should have at least three to six months’ worth of living expenses so that you can support your needs in case you get fired or face immediate costs.

Bonus post: Read Expert Roundup: How Much Should You Have in an Emergency Fund?

  • Paying the wrong debt first. Many borrowers have more than one debt today. You may have a mortgage, an auto loan, a small personal loan, or a business loan to fund your needs. If you need to cover several types of debt such as small loans and credit cards, financial experts advise people to start repaying the largest debt first. Once you pay the biggest sum off it will be easier to return smaller loans on time.
  • Not checking your credit. If you have ever failed to repay your debt on time you know how it may affect the credit history. You shouldn’t avoid checking your credit once in a while. Every consumer has the right to get their free annual credit report from one of the three main credit reporting agencies. You should check it for relevant information and possible errors that can be erased. Your credit rating seriously affects your borrowing abilities. So, having good or excellent credit is essential if you want to have more available options and lending solutions.

All in all, achieving financial success may not be the easiest task but it’s definitely worth it. After all, the first thing you have to do when you find yourself in a hole is to stop digging. It will take some time to recover from your mistakes and make new financial strategies work. 

A great idea is to turn to professionals such as financial mentors and planners and even invest some cash to get expert advice and relevant recommendations on what you personally need to change or implement in your life to improve personal finances.

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