July 1st marks a day closer to celebrating Independence Day for many, but what others may not know is that this day serves as an important step in creating a desired financial lifestyle. Financial Freedom Day strives to raise awareness about making the American dream even dreamier. On this day, freedom refers to the ability to build a sustainable amount in savings and obtain passive income so that one does not need to worry about steady employment. Financial freedom provides the choice to live out passions and goals outside of work, whether it be traveling around the world or achieving early retirement.
The History Behind Financial Freedom Day
Financial freedom begins with personal finance —the financial management done by an individual or an entire family. It entails budgeting, saving, and spending money. In 1920, the first research done on personal finance was conducted by Hazel Kyrk who laid the foundation for both family and consumer economics. In 1947, Herbert A. Simon claimed that most individuals may not be able to make good economic decisions due to limited educational resources and personal desires. Thus, through several studies it was concluded that personal financial education was necessary for sound financial decisions. After 1990, several universities began offering financial education courses.
In 1984, the Association for Financial Counseling and Planning Education (AFCPE) was founded at Iowa State University, and the Academy of Financial Services (AFS) was established in 1985. Both became extremely influential institutions in personal finance. Furthermore, in 2008, the United States President’s Advisory Council on Financial Capability was established to further promote financial literacy in America.
How to Accomplish Financial Freedom
Financial freedom truly is a dream that can be turned into reality. However, it does require discipline, consistency, and strategy. Along with achieving passive income and strong savings, it involves paying off debt or reducing loan costs. Many start paving the way for financial stability with small habits such as setting life goals, creating automatic savings, and making a monthly budget.
At KCCU, we strive to give our members the ability to pursue their ambitions and live a comfortable lifestyle. There are many services that can assist with achieving financial freedom, one being our investment team. Investing is one of the popular avenues to earn passive income, a key component to financial freedom. Along with investing, it is crucial to understand how to make important financial decisions and create a plan to build strong savings. Luckily, our financial advisors can assist with what steps to take throughout the financial journey.
KCCU also offers certificate accounts where members can lock in great rates for terms as short as 6 months or longer terms up to five years. Another option is money market accounts: an ideal savings account for members who want to maximize their return on investment while still having easy access to funds. There are several benefits to money market accounts, including earning higher yields than traditional savings accounts and receiving highly competitive dividend rates.
Similarly, KCCU offers a high dividend eChecking account, where one can earn up to $787 a year by performing normal day-to-day tasks, such as debit card transactions, online banking, paying bills, and so on.
Lastly, KCCU offers financial calculators that allow individuals to see what their savings are worth ahead of time and how long savings will last. The calculators also show how many months it will take to pay off debt, how much is spent per month, home equity, mortgage payments, vehicle payments, and much more.
If one is looking to build his/her financial knowledge, KCCU partners with Zogo Financial to offer a financial literacy app. With Zogo individuals can learn a wide array of topics from opening a bank account to saving for retirement—and everything in between. As the different modules are completed, you’ll earn rewards such as gift cards to use at their favorite stores. As stated previously, financial freedom starts with financial education; why not have fun in the process?
July 1st provides an opportunity to recognize financial freedom and the fresh start that comes with it. Financial education was created so that Americans can thrive in their economic and everyday environments. It allows individuals to live out life-long dreams and gain relief from financial struggles. This year, KCCU encourages individuals to set forth in their financial journey so that they may reach their desired destinations. Don’t worry —we’ll be there every step of the way. Happy Financial Freedom Day!
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