Financial independence. It may appear to be a good theory. But the truth is that it is something that anyone can do. And by anyone, I mean anyone, including yours truly, who once owed tens of thousands of dollars in student loan debt solution. Whatever financial difficulties you are experiencing today, there is always a way to get back on track. Perhaps your first step should be to try a budgeting app.
In this article, we will discuss the significance of financial freedom and share some financial freedom tips, including a few that have worked for me.
What exactly is financial freedom?
Taking control of your finances is the first step toward financial freedom. You have a consistent cash flow that allows you to live the life you desire. You’re not concerned about how you’ll pay your bills or unexpected expenses. And you’re not saddled with a mountain of debt.
It’s about admitting that you need more money to pay off debt and possibly increasing your income with a side hustle – more on that in a moment. It’s also about long-term financial planning, such as actively saving for a rainy day or retirement.
10 Game-Changing Financial Independence Suggestions
1. Recognize Your Current Situation
You can’t achieve financial independence unless you know where you’re starting from. Looking at how much debt you have, how much savings you don’t have, and how much money you require can be depressing. However, this is a significant step in the right direction.
Make a list of all your debts, including your mortgage, student loans, car loan, credit cards, and any other debts you may have. Don’t forget to include any money you’ve borrowed from family or friends over the years.
Take a deep breath now. And here’s another. Then add all of the numbers together.
What is the total amount of your debt?
If it’s a large number, don’t worry; I’ll explain how to pay it off later in this article. Congratulations if it’s a low number!
Take a look at all of the money you’ve saved up next.
Make a list of all your savings, including savings accounts, stocks, stock-matching programs, company retirement-matching programs, and retirement plans. Then we’ll add any recurring monthly payments you receive, such as a salary or money from a side hustle.
Keep these figures in mind as we go over the next few financial freedom suggestions. You can easily make all the countable through contacting your debt repayment solution like Stepchange number where you can contact and get the right decision related to
2. Have a positive attitude toward money
Debt can be extremely discouraging.
But keep in mind that money is a good thing, even if it appears to be carrying a lot of weight right now. You are deserving of financial independence.
Money, like food and water, is merely a necessity. It enables you to purchase the items you require and live the life you desire.
To achieve financial freedom, you must view money as a tool to help you achieve your goals, fuel your energy, and live a stress-free life that you can enjoy.
Because if you have a negative attitude toward money, you will subconsciously sabotage your chances of making and keeping it.
3. Make a list of your objectives.
Why do you require money?
Do you want to be debt-free for good? Do you want to get away from the 9-to-5 grind? Is there somewhere you’ve always wanted to visit? Do you need to put money aside for a wedding, children, or retirement?
It was because I tied financial freedom to an emotional goal that I was able to achieve it. My goal was to pay off my student loans and save for a down payment on my first home. And, to be honest, it was a euphoric experience watching the debt disappear and my savings grow.
I became so enthralled by seeing the numbers shift that I worked harder to earn more money in order to see a larger shift in my personal finances. Would I have achieved my financial freedom goal if I hadn’t tied it to something emotional? Most likely not. I was desperate to pay off my debts and get out of my parents’ house. That sense of desperation kept me going throughout my journey.
4. Keep Track of Your Spending
Tracking your spending is an important step toward financial independence.
You can use a tool like Mint to track your spending, which categories you’ve overspent in, how much money is in each of your accounts, and how much debt you have.
Another cool feature of Mint is the ability to set goals directly from the dashboard. You can keep track of your goals and know exactly when you should expect to reach them based on how much money you put in. As a result, you’ll be held accountable and reminded to keep putting money towards it for yourself.
After a month of using Mint, I was able to save some extra money for my new wedding fund goal. Mint assisted me in staying focused on my goal and pushed me to generate more passive income in order to meet my financial milestones.
5. Always Pay Yourself First
You’ve probably heard the phrase “pay yourself first.” But, in case you haven’t heard, “pay yourself first” means putting money in your savings account before paying anything else, such as bills. And the act of paying yourself first has helped countless people get closer to financial independence.
Because if you want to pay yourself $1,000 per pay period first, whatever is leftover must be used to pay your bills. And if you don’t have enough money to cover your bills, you’ll be forced to work a second job to make ends meet.
Paying yourself first ensures that you are always saving money to invest in yourself. When you do the opposite, you get whatever is left over, which is usually insufficient to help you achieve financial freedom.
You can pay yourself first in a variety of ways. For example, if your company offers a retirement savings plan, you can request that funds be withdrawn for your retirement. That way, you’re first investing in yourself and your future. The money is deducted from your pay, and the remainder is money that you can set aside for bills and expenses.
6. Spend Less Money
Warren Buffett bought a five-bedroom home in 1958 for $31,500 and hasn’t left it since. What is his net worth? A whopping $90.3 billion. He is able to purchase a larger and more expensive home. But it’s possible that his frugal lifestyle is the reason he’s one of the world’s richest people.