September 27th, 2012

A Second Chance at Financial Freedom

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**Welcome to Self-Improvement Month here on the Credit Karma Blog! Today’s guest post is contributed by Kristina.**

how to set goals

Almost everyone has experienced financial difficulties at some point in their life. Whether you are a struggling student who lives on a budget, a single parent who is trying to do the best for your kids, or you are a young professional who is struggling to pay off your debts; the truth is that almost everyone can improve some aspect of their financial lives.

Maybe you want to save more money each month. Maybe you want to pay off your debts as quick as possible. Or maybe you want to increase your monthly income. Improving your financial situation doesn’t take much, but it does take dedication.

4 Easy Steps for Financial Freedom

Recognize the problem.

As with any personal problem the first step toward improving your financial situation is to recognize that there is a problem. If you are having difficulties making your monthly debt payments you have to realize that you can no longer afford your current lifestyle and pay off your debts at the same time.

Making cuts in your monthly spending, allocating a larger percentage of your income towards debt repayment, or finding ways to increase your monthly income will all help you pay down your debts sooner and achieve financial freedom.

Find out how you got there.

Maybe you are in debt because you live beyond your means on a monthly basis. Maybe you are in debt because you are a compulsive spender. Or maybe you are in debt because you loaned a family member (or friend) money and they have yet to pay it back. Before you can achieve financial freedom you have to make the conscious decision to learn from your mistakes so that you don’t repeat them in the future.

Make an action plan.

If your financial goal is to save more money each month, you will have to make an action plan to achieve your financial goal which includes setting a target date, making a personal budget to determine how much money you can afford to save each month, as well as possibly determining where you can make cuts in your monthly spending so that you can save more money each month. Having an action plan with a defined goal and the necessary steps to take towards achieving the goal will make our dream a reality and our goal attainable.

Check in on your action plan regularly.

There is really no point in making an action plan if you don’t check in on your plan regularly to make sure that you are staying on track towards achieving your goal. It is a good idea to break down your ultimate goal into smaller goals because as you achieve your short term goals you will be motivated to continue working towards your ultimate goal.

It’s also a good idea to check in on your action plan on a biweekly or monthly basis to make sure that you are still on the right track towards changing your financial habits and achieving financial freedom.

What is your secret for financial freedom? Tell me on Twitter @TKBlogs.

Kristina is a Financial Services Professional with over 12 years of experience working in the Banking Industry. She helps people invest their money wisely and plan for their retirement at DINKS Finance. Kristina enjoys helping people plan their personal budget, pay down their debts, and enjoy their financial lives.

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Disclaimer: All information posted to this site was accurate at the time of its initial publication. Efforts have been made to keep the content up to date and accurate. However, Credit Karma does not make any guarantees about the accuracy or completeness of the information provided. For complete details of any products mentioned, visit bank or issuer website.


  1. That was helpful information. When you find yourself getting into overspending and underproducing hire a professional. Get a bookkeeper or accountant to help you with your issues. Do research on some of these companies that have your financial information. This includes the obvious banks and credit card companies but don’t forget about jobs applied for and public assistance programs you were enrolled in. Read the newspaper and keep up with what’s going on!!

    NSH at 9:34 am on September 29, 2012
  2. I agree with you NSH, getting advice from an accountant or a financial planner can be very helpful if you are getting into a bad financial situation. Thank you for reading, I’m glad you liked the article.

    Kristina at 4:31 pm on November 6, 2012

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