I think we can all agree when I say that stressing over money is just so exhausting. We are working our 9-5 jobs, sometimes, some of us even do part-time hustles but yet we still end up with zero to little savings every month.
And you know how frustrating and stressful it is to keep trying to make the ends meet every single month.
There’s no denying the fact that we all want to achieve Financial Freedom, I mean, who doesn’t, right?
But unfortunately, with all the bills piling up, all the debts that have to be paid and when you’re living paycheck to paycheck, the chances of achieving it is just next to impossible.
Clearly, we need to shift that thinking. Achieving Financial Freedom may be difficult but it’s definitely not impossible. I believe that with hard work and a little tweaking in our lifestyle and spending habits, we can also be financially free.
That’s why today, I have decided to gather 7 brilliant tips that’ll help us achieve financial freedom. Check them out!
Set financial goals
This should be the very first step that you need to take. The term Financial Independence is just too vague — you need to be more specific.
Ask yourself what financial freedom means to you. Be as realistic and as specific as possible.
Once you’re able to set your financial goals, it will be a lot easier for you to determine what you need to do to achieve them.
Track your spending
Whether you want to save more money, pay off a debt or work your way to achieving financial independence, tracking your spending is always a must!
You need to know where your money is going. The key to creating a strong financial plan is to really understand how much you spend and save.
I understand that taking a really good look at our expenses can be dreadful but I tell you, the moment that I decided to track our spending, I was so surprised to see how much money we’ve spent on unnecessary items — that we could’ve easily avoided if we were more aware of our financial situation.
So, start by writing all your monthly expenses down. Take a good look at how your family is spending money.
The moment that you become more aware of all your expenses and savings, the easier it will be to create a financial plan suited for your family.
Build a Budget
After you track your spending, the best thing to do next is to create a monthly budget. Building a monthly budget is the best way to ensure that all your bills are paid and your savings are on track.
Make sure to create a budget that is suited for you and your family. Chances are, if you create something that is “unrealistic”, you’ll more likely to get off track and not stick to it.
Learn to adjust your spending
Once you have created the perfect budget, you can start to take a good look at your expenses and find places where you can spend less. It could be on groceries, cable or even gym memberships.
I know, whether we like to admit it or not, some of us enjoy living beyond our means. I did too until I realized that the more I keep up with that certain lifestyle, the deeper I’ll be buried in debt.
Living within or even below our means is not a sign of punishment. We are just making small adjustments by learning to distinguish our wants over our needs.
I know it can be difficult to adjust to a different lifestyle at first, but I started to think of it this way, the sooner I stop living beyond my means, the closer I’ll get in achieving financial independence.
Pay off your credit cards
Most credit cards usually have insane interest rates, and these high-interest loans are really hurting our wealth-building plan. I understand that going for minimum payments is so much easier but the more that we do this, the more those interest charges build up and the more we’re losing money.
So, as much as possible, try to make it a habit to pay your credit cards’ full balance instead of opting to pay the minimum payment. Doing this will save you more money in the long run.
Stop buying to impress
No matter how much we deny it, sometimes, the only reason we bought the latest phone, that new car or even that expensive dress is to impress people.
We need to stop doing this! This is causing us more harm than good. It’s not helping you reach whatever financial goals you have set.
Just because your friend or your neighbor bought a new car, doesn’t mean that you also have too. Remind yourself that the sacrifices that you do now will reward you tenfold in the future.
Save money to invest
Lastly, we all know that we can’t truly be financially free if we are not already planning for retirement.
The best way to do this is to invest wisely. Be smart with your choices and make wise decisions.
I know that investing can be way over our heads and it even gets too overwhelming for me. If you feel the same way, the best thing to do is to let your financial adviser do it for you.
We may not be able to master all these things at once but we don’t have too. What matters is you do it one by one and learn to incorporate it in your daily life.
The key is always consistency. So, try these tips today and join me in my journey of achieving financial independence!
What about you? What tips do you have in achieving financial freedom? Let me know in the comment section below or send me an email, I would love to hear from you!