Financial freedom is something I have always wanted to achieve. Being in control of my money and deciding for myself how I spend it or save it. Throughout the early stages of life, I was living paycheck to paycheck with money leaving my account just as quickly as it arrived.
Over time I learned a few tricks that have helped me gain financial freedom, it changed my life and I hope these tips can help you too.
Keep a budget
There is something very empowering about knowing exactly where your money is being spent each month. A budget is the best way to maintain this structure and here’s how:
-Before you are paid each month, take a moment to write down all your set expenses and tally them up
-Deduct these expenses from what you will earn so that you know how much you are left with. Now you won't be spending more than you earn.
-With the remainder, factor in an amount you want to contribute to savings.
-Now everything that is left after that is your spending money!
The main objective of setting a budget is to spend responsibly on non-necessities and contribute to savings regularly. When you are in control of your money, you will be able to identify unnecessary expenses and subscriptions.
Make debt worthwhile
Debt is something that is very difficult to avoid and it is one of the biggest contributors to the loss of financial freedom. Your debt could be anything from a store account to the repayments on your car.
The trick is to only get into debt for things that are worthwhile. Chances are you will be making installments on your purchase long after the excitement has worn off. Before agreeing to purchase on credit, consider this:
-Will you still need or enjoy this in a years’ time?
-Could you wait a few months and pay for it in full with your savings?
-When you are working late, is this worth working for?
Sometimes you will find that your budget is put to the test with unexpected bills mid-month. These are unavoidable, no matter how much you try to prepare for them. If your savings are tied up, what do you do? You can generate money by selling your unneeded items. You can utilize a site like reDollar.com to sell items like watches and jewelry to get you over the hump
Acknowledge the process
There were many times when I just wanted to break free from my budgets and credit rules and just spend, spend, spend! Reaching financial freedom is a process and a difficult one at that, mostly because it takes time.
Coming to terms with your process and finding a budget plan that suits your lifestyle and personality is key. If after a few months something isn't working for you, change it up or find a new technique.
If it helps set yourself a goal, like a weekend away, a fancy pair of boots and matching handbag, anything that will keep you motivated. You will thank yourself in the end.
No matter how much you earn, you can achieve financial freedom and it will change your life forever! There is nothing more liberating than being in charge of your hard-earned money. When times are tough, remind yourself that everything you are doing now will be worth it.