Declare Your Financial Independence This July 4
CPAs Share Five Steps Texans Can Take to Achieve Financial Freedom

DALLAS — If credit card debt, mortgage worries, and tax concerns are weighing you down this holiday week, let the sound of fireworks on July 4 signal the start of your journey toward financial freedom. You won’t free yourself from your money woes overnight, but Texas CPAs offer the following five steps to help you declare your financial independence.

Step #1: Set clear goals.
You’ll never achieve financial freedom if you haven’t defined what freedom looks like to you. Whether that’s being debt-free, building up a savings account, or having a secure retirement, knowing where you want to go is the first step to getting there. That’s why CPAs say establishing financial goals should be your first step when working towards financial independence. Commit your goals to paper and then plan how you’re going to achieve them.

Step #2: Start saving!
Spending less than you earn is the key to being able to save and invest money. Continually look for ways to cut your expenses and/or increase your income. Trying to live beneath your means should be a priority.
CPAs recommend that you have three to six months of living expenses that you can easily tap in the event of an emergency. The best strategy for building up your savings is to set aside money before you have the chance to spend it. Consider having at least a small part of your paycheck directly deposited into your savings account instead of putting it all into your checking account.

Step #3: Reduce your credit card debt.
If you’re carrying high credit card balances, consider consolidating your debt on one low interest credit card and making the highest monthly payment you can manage. For several months, only make purchases that you can pay with cash.

Step #4: Evaluate your insurance coverage.
Ensuring that you have adequate insurance coverage is vital to protecting your family and your assets. Key policies to review include health, disability, life, automobile, and homeowners’ insurance. Make a checklist of your policies and the amount of coverage you have. Determine whether changes in your financial and family life warrant adjusting coverage.

Step #5: Think taxes.
Effective tax planning is a year-round endeavor. The summer is the perfect time to evaluate your tax situation and take steps to ensure you won’t be hit with a big tax bill next April.

Ask a CPA
If you need help along your path to financial freedom, consult with a CPA or visit www.ValueYourMoney.org. A CPA can help you develop a financial plan and work with you to make sure 2007 is the last time you need to declare your financial independence.

PERSONAL FINANCE INFORMATION
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ABOUT TSCPA
TSCPA (http://www.tscpa.org) is a nonprofit, voluntary, professional organization representing Texas CPAs. The society has 20 local chapters statewide and has 27,000 members, one of the largest in-state memberships of any state CPA society in the United States. TSCPA is committed to serving the public interest with programs that advance the highest standards of ethics and practice within the CPA profession.