What is Financial Freedom?
It is essentially not being a slave to money.
It is having enough in reserve without living off one paycheck to the next. It is being debt-free.
Financial freedom may seem like a fairy tale, but it can easily become a reality through watchful spending, immediately paying off debt and looking for opportunities to earn extra money.
By mindfully changing a few behaviors, you will be able to answer“Yes!”to the questions below.
Do You Earn More Than You Spend?
If you answered “No”, you are living outside your means and worsening your problem. This is easily done by using up all your available credit in terms of credit cards or loans. To reverse this rather common spending habit, you can take these steps.
Only have one credit card paid in full every month. Most people want a credit card with them in case of an emergency. This is a good idea, but one credit card is enough. You do not need to fill up your wallet.
Spend only what you have. How often have you grabbed a coffee by card on your way to work? If you do not have funds in the bank, then bring over home-made coffee next time. This practice of finding an alternative or simply going without should be used across all spending habits.
Are You Debt Free?
If any portion of your monthly income is going toward accrued debt, then you are spending money that could be saved. Debt is an obligation, but you do not need to suffer paying it back the rest of your life. How not to? It may be time to rearrange some of your finances the smart way.
Evaluate your individual debt and see if any changes can help you eliminate it completely. Get in contact with parties you owe money to. Is it possible to renegotiate interest fees? Often, you can, but you need to initiate it. You can also pay debt off early and reduce the total amount of interest. Consider reducing expenditure in one area, and use those funds to pay extra toward your debt.
Have You Stopped Living Paycheck to Paycheck?
What if you do not have to struggle from paycheck to paycheck? Keep a budget to track your expenses. There are great apps for this! Once you notice an unneeded expense, start shaving that expense down. This will allow you to increase your savings, or pay off a few monthly recurring bills.
Another option is making extra money. Find side work or investment opportunities. Also, besides the disadvantages, there are benefits to owning a credit card. A lot of people earn money through credit card usage by paying with cash rewards, while paying the debt off in full each month.
Reach Financial Freedom!
Free yourself from financial burdens by using credit cards wisely, budgeting your money and implementing strategies to reduce your debt. Financial freedom is possible. You just need to make a financial plan and implement it whole-heartedly.feature photo credit: bevanbird.com: financial-freedom
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