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Guidance on Your Journey

Mpowered offers a variety of ways to help you on your journey. Meet your goals by working one-on-one with a personal finance to coach to pay down debt, analyze & improve your credit score, build savings, tackle student loan payments, and more.  Get started today!

Journey to Financial Independence

The path to financial independence can be thought of as a journey with four stages: financial stability, financial advocacy, financial security and financial independence. It is never a straight line from one stage to the next; it has twists and turns! There are strategies that you can employ along your financial journey that will prepare you for the down times and sustain you through the good times.

Financial Stability

This stage requires you to stabilize your financial life and your monthly budget and to prepare to meet your financial goals.  Achieving financial stability will reduce your financial stress and allow you to focus on your life goals.

  1. Use a budget or spending plan as a tool. If you don’t have a budget, track your income and expenses for three months so you can start to see a pattern of where you are spending money. Once you have this information, start making changes in your spending so you can reach your financial goals.  You need to live within your income. If you are spending more each month than you are making, what can you cut back on?  And/or how can you increase your income?
  2. Eliminate all unsecured debt. Enrolling in a Debt Management Plan may be an option to achieve this goal. If this is not a good option for you, what can you do to achieve this goal?  Until your finances are back on track, it is important to stop using credit. (If you’re in a hole, stop digging!)
  3. Create an emergency savings fund with at least $1,000.00. A savings account will allow you to draw on this money instead of putting emergency expenses on a credit card. If you do not have an emergency fund, how can you start putting money away each month in order to reach this goal?

Financial Advocacy

This stage involves developing your knowledge of financial practices and terms, and becoming a more informed consumer.  This knowledge should not come from institutions that sell you financial products; education should come from a neutral source.  You will also want to develop some goals so that your financial decisions have greater meaning.

  1. Set financial goals.  Financial goals can be categorized based on the length of time it takes to complete them. Short term goals can be achieved within 6 months to 1 year. Medium term goals can be achieved within 1-5 years and long term goals can be achieved in 5 years or more. 
  • Review your financial goals periodically to see if you are on track. Share them with someone you trust and ask them to help you so you can achieve these goals.
  1. Read books about money management and personal finance practices.
  2. Read the fine print on all credit offers and financial documents.
  3. Review your credit history and know your level of credit worthiness. Request copies of your credit reports once each year and make sure they are accurate.

Financial Security

This stage involves solid financial knowledge, established savings for both short- and long-term goals, and a debt-free life.  Typically families reach this stage after several years of applying sound financial principles in pursuit of clear and exciting goals.

  1. To further insulate from life’s emergencies, you will want to create a larger savings account with 3 to 9 months of living expenses. How can you do this?
  2. Is your insurance coverage adequate? Do you need health insurance?
  3. Is there a large financial expense coming up? Are you prepared for this expense?
  4. Finally, how can your money work for you? Have you looked into investing your funds so that you can have the type of lifestyle and retirement you want?

Financial Independence

Everyone will have a different definition of financial independence.  mpowered defines financial independence as “the ability to afford the lifestyle you desire without having to work.”

What does financial independence mean to you?  

Contact us to start your journey to financial independence.  To learn more about our organization and our services, click here.