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The do's and don'ts of achieving financial freedom

Posted: 12:21 PM, Sep 03, 2018
Updated: 2018-09-04 10:37:49Z

Making money mistakes is a lot more common than you think. A lot of people can struggle when it comes to simple tasks that come with budgeting.

When you’re struggling with money, the best thing you can do is set goals to reach financial freedom, because the small habit you form now will affect your future.

"If managing a budget is difficult, credit cards shouldn't even be a part of the picture," says financial expert Jonathan Duong.   

Duong says having a credit card is a great way to build credit, but if you can't pay the bill, it's actually the worse thing for your finances.   

Often times, Duong says the most common money mistake is the one we're not doing, "Creating a basic emergency fund: what you are ultimately doing is being your own little bank to make sure there is a loan available to you in the event of an emergency, and it will save you a lot of money in interest."   

When it comes to savings, Bankrate.com found 65 percent of Americans save little or nothing at all.

And when it comes to insurance, not having it is a big money mistake. Some people forego insurance in hopes to save money. However, your insurance is your safety net. Financial experts say it's there to protect you from bankruptcy and from future problems.  

If your ultimate goal is to have financial freedom, Duong says you have to get your priorities straight.   

Make sure you are able to afford basic living expenses, pay off debt, build an emergency fund and contribute towards retirement.  

"Whatever is left over, go have fun; go have a ball spend whatever you want,” says Duong. “I'm not one to critique what you spend your money on, as long as they're first reaching those initial goals."