Steps to Financial Freedom Recap

I'm so happy that it's Friday and I wanted to take a minute to recap what steps I have taken so far to get me on the path to financial freedom! I'm giving myself a little pat on the back here because I think I deserve it!

Step 1. I decided that I wanted to get out of debt. Big step! So I made a list of my debts, corresponding interest rates, balances due and ordered them from the highest to lowest interest rate. The credit card is at the very top of the list with a 19% APR. I moved the balance from that card to a card that has a 0% APR for the first 12 months,  making my monthly payment $300. That's doable. Then I automated this payment so I don't have to watch the $300 payment leaving my bank account every month. It just happens which is way less painful.

Step 2. I took a look at my savings account. If i'm paying them then I want to pay myself too. So I spoke to my payroll dept at work and changed my direct deposit to put all but $100 of every paycheck in my checking account and put that other $100 into a savings account. The savings account is a high yield savings account, it is not connected to my regular bank, lessening the temptation to dip into it, AND I automated the action. It's a small amount but it's better then nothing and it adds up.

Step 3. I took control of my 401k and feel like I really know what is happening there. I know how much i'm investing through every paycheck, what i'm investing in, and how to check my YTD earnings and my progress.

Step 4. I did my research and started investing an old 401(k), that I rolled into an IRA through Sharebuilder, in the stock market. My first stock purchase was only 5 shares. This keeps my potential loss and risk low and at the same time i'm learning so much by being an active participant. It's really exciting!

Future steps:
Continue getting out of debt. After the credit card is paid off, move on to the student loan debt.
Continue to save. Increase this amount after the credit card is paid off.
Continue to invest in the 401(k). Increase this amount after the credit card is paid off too.
Continue to invest in the stock market. Alway research new stocks and sectors.
Work on my passive income streams. Blogging, clothing line, new products. (More to come on this topic!)

What are the steps that you have taken so far towards financial freedom? What will your next steps be?

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