Write your declaration of financial freedom. Here’s how.

As the nation celebrates the Fourth of July, note that it's Financial Freedom Day on the 1st of July every year. How do you achieve that goal? Tropical Financial Credit Union has identified numerous areas where you can take action to ensure your liberty from debt and freedom to spend your days the way you want.

Financial freedom can be described as having enough passive income from investments and savings to live comfortably without relying on a steady paycheck. Here are the steps to follow:

1. Seek security beyond a steady job

Many people hope for a secure job and a comfortable retirement. Financial freedom means you are no longer dependent on a single employer. With a solid financial foundation, you're no longer tethered to a job you dislike for fear of being unable to pay your bills or having to dip into your retirement savings to make ends meet. Achieve freedom by pursuing a freelance career, launching your dream business, or volunteering for a heartfelt cause. The choice is yours.

2. Slay the debt dragon

Heavy, even small recurring debts slow or halt your progress towards financial freedom. However, you can defeat that beast; start by creating a comprehensive debt repayment plan that reduces every account to a zero balance. Consider strategies like a debt snowball (smallest debts first) or avalanche (highest-rate debts first) to chip away at them systematically. Each dollar saved on interest takes you a dollar closer to your freedom.

3. Boost savings and passive income

To maintain your financial freedom, you need a robust safety net of savings and a steady stream of passive income. Let's tackle savings first. Build an emergency fund that can cover several months of living expenses. Regularly deposit money in a Tropical Financial Savings Club Account. If you have a large sum, earn more in the credit union’s money market account. The funds, which you can immediately draw upon, will buffer you against unexpected expenses, thus preventing you from falling back into debt.

Part 2: The “passive” in passive income refers to income that requires minimal ongoing effort from you. It could come from dividend-paying stocks, rental properties, or an online business. Be sure to diversify your passive income streams to ensure a steady flow of income regardless of market fluctuations.

With financial freedom comes the ability to retire early. Have you dreamed of quitting your job at a younger age and spending that free time pursuing your interests? With passive income covering essential expenses, you can spend more time with loved ones, learn a new skill, pursue a hobby, or tick off everything on your bucket list.

Financial freedom gives you the time to travel and the liberty to visit almost anywhere. You can book a long cruise, backpack for weeks, or wander through any continent. Why? You're no longer restricted by an employer’s vacation policy or a limited budget. Let your imagination flow, and your fingers search the internet for the most intriguing destinations.

Start today on the road to financial freedom

Did you know why the national holiday falls on July 4? On July 2, 1776, the Continental Congress voted in favor of independence. Two days later, delegates from the 13 colonies adopted the Declaration of Independence. John Adams, a Massachusetts delegate and future president, thought it should be the earlier date.

• Regardless of which day of the year you choose, take bold action like one of the signers:
• Evaluate your current financial situation.
• Track your income and expenses and identify areas to cut back.
• Prioritize building your savings.
• Research sources of passive income that align with your skills and interests.

Like our nation’s founders, know that though the challenges may be great, the rewards will be ever greater. Financial freedom is not about money; it's about the ability to lead your life on your terms.