Author: Mohamed Hamza Ghaouri
Want to achieve financial freedom but still don’t know how? You might not even know what that entails. Financial freedom is like one of those meaningless expressions, like “paradigm shift”. Let me help you unpack this sentence and present it step by step in the following guide inspired from “Dave Ramsey’s 7 Baby Steps”. Dave Ramsey is a financial advisor who fought his way out of bankruptcy and millions of dollars of debt. Since then, he has helped nearly 6 million people take control of their money for good. Through his 7 Baby Steps, Dave Ramsey shares his vision to save for emergencies, pay off debt permanently and build wealth.
Inspired from Ramsey’s 7 Baby steps, we suggest the following:
Step 1 (Save $1,000 for Your Starter Emergency Fund):
Your goal is to save $1,000 as fast as you can. This emergency fund will cover those unexpected life events you can’t plan for. Believe me, there are plenty of them.
Step 2 (Pay Off All Debt (Except the House) Using the Debt Snowball):
Start by listing all of your debts (except for your mortgage). Put them in order by balance from smallest to largest. Pay minimum payments on everything but the little one. Once it’s gone, take that payment and put it toward the second-smallest debt, making minimum payments on the rest. That’s what’s called the debt snowball method, and you’ll use it to eliminate your debts one by one.
Step 3 (Save 3–6 Months of Expenses in a Fully Funded Emergency Fund):
Once you have paid your debt, don’t slow down now. Take the money you threw on your debt and create a fully funded emergency fund that covers 3 to 6 months of your expenses. This will protect you from life’s biggest surprises without falling back into debt.
Step 4 (Invest at least 15% of Your Household Income):
It’s time to take your retirement seriously (no matter how old you are). Take at least 15% of your gross household income and start investing it. This required an attractive medium and long-term investment opportunity. One such investment opportunity available in the market is that from Finterra ventures which offers great passive income through their “Finterra Global Plantations” project. The project offers an exceptional opportunity to investors aiming at making an important side income and generating profit without bearing any high risk. The tenure of this opportunity is only 40 months which makes it appealing. If you feel that your retirement is still far, you can renew your commitment with FGP for another 40 months, but this time opt for a higher and more profitable package.
Step 5 (Save for Your Children’s College Fund):
At this point, you’ve paid off all of your debts (except the house) and started saving for retirement. Next, it’s time to save for your kids’ college expenses. However, saving through a secure and profitable solution like “Finterra Global Plantation” would be a better idea.
Step 6 (Pay Off Your Home Early):
Now take it all home. Your mortgage is the only thing between you and the total freedom from debt. Can you imagine your life without any debt payment? Any extra money you used to spend on your mortgage could be saved and invested once you are free from your final debt burden.
Step 7 (Build Wealth and Give):
Do you know what people without debt can do? All they want! The last step is the most fun. You can live and give like no one else. Remember to give Zakat, be more generous in giving Sadaqah and try to give CashWaqf. Continue to build wealth and become outrageously generous, while leaving a legacy for your children and their children. This is called leaving a legacy!
Forget everything you know about money management plans. With these steps, you don’t need a finance degree to take control of your financial life. Anyone Can Do It! With each step, you will change the way you manage money, little by little