A New Age of Financial Independence - By Alicia Messer
Every year on the 4th of July, Americans take time to honor our forefathers in establishing American independence from our British ancestors. Earning one’s independence is indeed remarkable and worthy of sincere recognition. Establishing one’s own financial independence is just as noteworthy! In an age where 20+ year olds frequently live with family members to save money on rent, long-term investments in bonds and stocks are unimaginable, and personal debt from credit cards and student loans are increasing by the minute, establishing financial independence is an arduous feat.
So how can consumers work toward financial independence? Consumers are constantly arranging their priorities in order to meet financial constraints. Here are some easy tips to begin the process of financial independence:
- Create a budget. Track your income and expenses to understand if you can cut back on expenses, re-allocate money to a savings account, and prioritize your spending habits.
- Set goals. Establish both short- and long-term financial goals that coincide with personal goals. Perhaps you can allocate money to pay off your credit card debt or save up to move to a nicer house. Habitually add money to your savings account and watch it add up over time.
- Review your budget. Once you’ve spent time understanding how you spend your money and what goals you have established, continue reviewing your budget to ensure your needs are being met.
GO Banking Rates expands on these steps in order for consumers to be financially independent:
- Cut expenses
- Spend less money than you earn
- Create an emergency fund
- Pay off debt
- Save aggressively
- Initiate automatic deduction
- Invest wisely
Over time, adjusting your budget to account for evolving priorities will become effortless. When your method of budgeting proves successful, look into enhancing your future through investments. Continue monthly contributions to your savings account. Understand your own needs and wants in order to satisfy your standard of living. Financial independence is just around the corner with a little bit of hard work.