Being financially stable enables you to have freedom and choice; freedom to end renting and choice to buy an ocean-front property.
However, financial stability is not an easy stage to achieve; it requires getting rid of bad money habits that you have long been comfortable doing and begin to develop financial habits that you find impossible to do.
Here are 5 things holding you back from financial freedom and possibly hindering your chance to buy a home according to Trulia:
Not tracking your spending
In the advent of cashless transactions, it's easy to get lost and lose track of the in and outs of your money and end up not knowing where your earnings go. Switch up and take the driver's seat and tell your money where to go instead of the other way around. Keep track of your spending by using an app like Mint or LevelMoney, or keep all receipts of your purchases so you can reevaluate your spending and do the necessary adjustments.
Not saving for retirement
The earliest you start saving for the golden years, the more chance you have at a retirement that is filled with choices than obligations. Instead of neglecting that 401(k) form or settling for a contribution rate that is less than 10% of your income, assess your spending and you may find minor costs that you can cut and direct the money to your dream retirement.
Not seeking financial knowledge
Financial freedom involves careful thought and planning that if you don't seek for knowledge and information, you could be making less than optimal financial decisions for yourself. Be more involved in your financial management and seek out information on your own for an easier tread of the complicated and vast world of personal finance.
Not setting financial goals
Set your goal and plan the road towards it and that means including exact amounts and dates. While you can vaguely jump into it and still end up owning a home and reaching your dream retirement, the process might take far longer and the result may not be as you imagined compared to when you consciously exert effort to shape and size your goals.
