Easy Building Blocks Toward Financial Freedom
Financial freedom is like a unicorn to some people. But it isn’t out of reach. Of course, it takes time and effort and a lot of self-control and patience. But here are some tips to get you started.
Author:Gordon DickersonReviewer:Frazer PughApr 05, 202324 Shares643 Views
Financial freedom is like a unicorn to some people. But it isn’t out of reach. Of course, it takes time and effort and a lot of self-control and patience. But here are some tips to get you started.
Know Exactly What Comes in and Goes Out
First, you need to know where you are when it comes to the state of your money. You must have exact figures for what money you have coming in, going out, and your debts. From there, you can use this data for your next steps. If you learn how to invest in real estate here, play the stock market, or have any other holdings, you must include these in your financial data sheet. Especially to avoid making costly mistakes such as not paying any taxes that you might owe.
Make a Solid Plan of Action
When you have a full data sheet of all your income and costs, you can then make a solid plan of action. You might feel burdened at first, but this will pass as you learn new ways to manage your money. It can help to write your goals and visualize where you want to be. This could be saving for your wedding or the kids’ college funds. This can be hard at first, and some goals can feel unreachable. But you might be surprised at how quickly you reach them when you have a plan.
Try to Cut Spending for Financial Freedom
When you know your expenses and can develop a plan, you put yourself in a good position. But there is still work to be done. And this is where your self-control and being frugalcomes in. You may be spending more than you can afford. And this causes major money issues. So you need to track your spending. When you use apps like Mint or Quickbooks, and you can see it in black and white, it brings it home. And you can see exactly what you are spending too much on.
Pay Off Your Debts ASAP
Don’t feel ashamed about debt. The most recent figures reveal that 77% of Americans have some form of debt. So you aren’t alone. However, one of the most crucial steps towards freeing yourself is paying your debts. You cannot move forward with that money on your back. So, you need to make a solid budget to pay off as much of your debt each month as you can. All creditors will work with you on this. And it takes less time than you think if you commit to it.
Supplement Your Income Where You Can
Finally, you can commit to extra work if you have the time. Many people these days supplement their income with side hustles. A side hustle is an extra job you can do well and quickly to make extra money in your spare time. Popular examples include online writing, making something to sell, or even driving an Uber on the weekend. Doing any of these can make up for the money you are losing by paying off your debts. And you may find something you actually love to do.
Summary
Financial freedom isn’t easy. But it isn’t as hard as you think with a step in the right direction. You need to know your finances and budget, pay your debts and consider a side hustle.
Gordon Dickerson
Author
Frazer Pugh
Reviewer
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