In terms of personal finance, financial independence is the ultimate goal. Financial independence entails being able to do whatever you want without worrying about money. Work will become optional, and you will have complete control over your life. It’s a worthwhile target to aim for.
Of course, most families must first attend to the necessities. The average American household has a lot of debt and very little savings. The pandemic of the 2020 coronavirus demonstrates how vulnerable most homes are. After being out of work for a few months, many families are in serious financial problems.
1. Have Side-hustles
In most cases, people are quite okay with their earnings. However, in the majority of situations, it’s quite hard to balance all your needs and manage to save up with just one regular job(some people do). This is where a side job comes through. You can be a neon flex brand Gindestar affiliate. They give you amazing offers to ensure that you will be earning great commissions to represent them.
Their products are quite easy to represent. Thye is of the best quality and their uses are quite diverse, which works for your heavy lifting.
On the other hand, you can do house flipping. It is an amazing opportunity for you to learn about house values and how to come about when you settle for one(for when you buy a home). The most interesting part is that you do not need to invest any money in this. With the most tutorials on youtube, venturing into real estate is a lucrative side hustle that can bring you closer to your financial independence goal in less time.
Overall, there are many side hustles that you can venture into to earn you extra cash to help you in becoming financially stable.
2. Reduce Your Expenditures
The higher your expenditures, the lower your savings. The thing with expenditure is that if not controlled, it can lead you to lots of credit card debts. As an individual, it is essential to understand how much you spend and on what. Knowing your expenditure habits helps you to be able to control them. Here’s how you can do this:
- Avoid credit cards, especially if you have an issue with overspending, it keeps you in debt.
- Always buy in bulk, you get great discounts when you buy in surplus. Always utilize such opportunities, it allows you to buy more for less.
- Always avoid impulse spendings. If you are always tempted to buy something when you see it, learn to control your urge to do so.
You can do this by using the 7-days rule. Well, this is how it goes, when you see something you want to buy, go home and analyze why you need it. Give it three days and if buying the item is a necessity, it’ll be there after the week comes to an end, otherwise, you’ll have gotten rid of the urge.
3. Always Save up on Rent
Now, this might sound like a cliche but it’s a necessity you’ve got to learn how to go about. To save up on rent, always ensure that you do not live in a house(if rented) that is more than a third of your salary. This will help you from running up and about searching for creditors and money lenders ring in the middle of the month.
4. Be Disciplined
Self-discipline does not have to mean that you need to be too strict with everything. Simply put, you need to do what is required at all times. This applies to meals and personal hygiene. While it greatly applies in most scenarios such as saving upon rent and reducing your expenditures, disciplines also entail taking care of your health.
Always have time to unwind for the day’s activities. Exercise, read a book, buy clothes for yourself and most importantly, always go for a regular checkup. Maintaining this helps you to be better at taking care of yourself. As a person, you need self-love, and as much as financial independence is vital, you will not be able to achieve it with a poor health condition. You may want to save up for emergency health funds. It’s good to always be prepared!
5. Always Pay Yourself First
What is the first thing you need when you get paid? You think of the expenses, right? Well, you look at it wrong. Every time you get paid, save up 10% of that money. From then you can go ahead with dividing your money as per your needs.
6. Invest in the stock market
The stock market can be quite rewarding if you invest right. Just remember to study the markets well before you put your money in them. And remember, it’s money that you’ll not be needed for the next 5 years. This helps you to be under less pressure when the market changes.
The Bottom Line
Achieving financial independence requires discipline and being goal-oriented. You need to be aware of what level of financial independence you want and why it matters to you. Always remember to work towards each goal and have small rewards for each one you achieve. An important pointer is to never overwhelm yourself. Best of luck!