5 Indicators of Financial Freedom

Financial freedom is achieved when you use money as a tool instead of allowing it to be a stress factor in your life. Reaching this point in your financial journey can bring peace of mind and confidence in your ability to make sound financial decisions. The following are indicators that you are making your money work for you:

1. You live comfortably and within your means. The money you spend is in alignment with your goals and you are not spending more than you make. You pay your bills on time and spend on your wants without sacrificing needs or future goals. 

2. You have a well-established emergency fund. When a financial shock occurs, your emergency fund provides you the means to handle the stressor without being derailed financially. 

3. You have no high-interest debt. You do not carry a balance on your credit card and are able to pay it in full and on time each month. 

4. You have a solid retirement plan in place. You have a retirement plan that includes investments and savings which will allow you to live comfortably in your later years. You are contributing toward that plan on a regular and automated basis.

5. You have achieved financial goals. Having accomplished goals indicates that you are well-disciplined in your choices and can think about your future when making financial decisions.

Obtaining financial freedom does not happen overnight, but recognizing your achievements along the way can be a strong motivator. It takes discipline, planning, knowledge building, and patience. Having support can help you stay focused and push past barriers when you are feeling overwhelmed. You don’t have to go it alone. Elicit help from trusted friends, family, and reliable resources.

BMI Federal Credit Union has resources to help you achieve your money goals. Through our award-winning Financial Education Program, you can meet with a Financial Coach, attend a financial education workshop, or explore our Online Learning Center. Our financial education team is ready to help answer your questions, assist you in developing a plan, provide you with resources to build your knowledge and achieve your goals. Visit bmifcu.org/education to learn more.

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(April 2024)