Imagine the panic that sets in when the bill arrives with an amount you never expected, or your car suddenly breaks down and requires an emergency repair. We all know the feeling. That’s what happens when you’re not in control of your financial situation. This is where financial freedom comes into play.
Financial freedom is all about taking ownership of your finances so you won’t have to stress about your bills and spend your time worrying about your monthly dues. It’s all about that feeling of relief that comes from knowing that you’re on top of all things related to your money and financial health.
Achieving financial freedom doesn’t happen overnight but it’s never too late to begin. Here are the steps you can take to build a life of financial independence this 2019.
Understand where you’re at
One of the first and most valuable steps towards financial freedom is knowing where you stand financially. Take a good look at how much money you have, including debts and savings. Write these details on a paper for better visibility of your current financial situation. This may be a reality many people have been avoiding but it’s something you should face head on to get started in the right direction.
Change your perspective towards money
Looking at a list of piling debts can be discouraging, but when you change your perspective towards money, things might just start turning around. People need to look at money in a different light. Money isn’t bad because it enables us to buy the things we need and want. The real problem comes in when we don’t value our hard earned money enough that we spend without thinking about tomorrow.
Set goals and write them down
Wanting to achieve financial freedom may be the ultimate goal, but to get there, you need to set specific short term goals. So, if you’ve never religiously made savings a habit, it’s time for things to change. Set specific monthly and annual goals for savings. Ask yourself how much money you want to see in your bank account by the end of the month or year.
Create a budget
To help guarantee that all bills are taken care of and that you’re on the right track, be sure to create a budget and stick to it. Having a budget sets a limit on how much you’re allowing yourself to spend on things. It reinforces your goals and helps you avoid the temptation to shop on impulse.
Track your spending
Besides creating a budget, knowing where your money is spent is just as important. Tracking your spending gives you an idea if you’ve been able to stick to your budget or not. Seeing how your money is spent will also help you take a good look at whether or not there are things that can be removed from your daily expenses to give way to higher savings.
Developing the habit of saving money isn’t always that easy, especially when you’re living a paycheck-to-paycheck lifestyle. To make sure something goes into your savings account, make saving a priority as soon as you get your monthly salary. Pay yourself first before spending and paying anything else. Developing this habit pushes you to work with whatever is left of your salary after setting money aside for savings. Consequently, you’ll be able to reach your goals for savings and financial freedom in the end.
Pay off debts
Many people make the mistake of investing money somewhere else before they start taking care of their debts. However, it’s always wiser to be cleared of debts first before spending on anything else, whether it be personal or business. Paying off debts may be burdensome, especially when you’re on a tight budget, but doing it will bring you closer to financial freedom.
Financial independence may seem like a far-fetched dream but it is definitely achievable. It’s about time to stop stressing about your financial burdens and live the life you truly deserve. Follow these tips and save up now. Open a savings account with Calcite Credit Union so we can help you grow your money. Give us a call for more information.