How to Reclaim Financial Independence
And not die trying
Debt and bad credit don’t only keep you up at night, but could stop you reaching your personal goals, such as owning a home or kickstarting a business.
Rather than allowing your money troubles to hold you back in life, look for ways to improve your circumstances and, in turn, hit every goal you have set for yourself.
Don’t settle for a limited future – find out how you can reclaim financial independence.
Never Lose Control with a Monthly Budget
Creating a budget is the first step towards financial independence. Get started by writing a list of your expected expenses each month, such as:
• Rent/mortgage payments
• Insurance fees
• Energy bills
• Travel costs
You can create a budget by using an online spreadsheet or even just by using pen and paper. Don’t forget to add in infrequent expenses, such as a loved one’s birthday or annual insurance premiums.
A budget will ensure your outgoings match your income and it could stop you from overspending. Plus, you could identify an amount to add to a savings account each month.
Overpay on Debt to Enjoy Financial Freedom
Most people have some form of debt, which could vary from mortgage repayments to credit card bills. If you want to eliminate all financial responsibilities at a faster rate and enjoy financial freedom in the second half of your life, you must aim to overpay your debts.
Creating a strict budget could help you identify how much money you have to spare each month to pay off a loan, credit card, or mortgage at a faster rate.
Never Be Caught Off Guard Again
An unexpected bill can catch you off guard and lead to you taking out a loan with unmanageable monthly payments. It is essential to have a backup plan in place to ensure you pick the right loan for your needs. This can minimize financial hardship when you face an unforeseen expense.
Even if you have a poor credit history, there are loans available that could help you to pay off an unexpected bill as soon as possible. However, you must borrow within your means to prevent any debt spiraling and ensure you don’t cause further damage to your credit score.
Again, a monthly budget can help you take control of your outgoings, so you won’t borrow a penny more than you can afford. Ensure you’re never caught off guard by reading this informative Cash Lady guide to short-term loans.
Don’t Underestimate the Importance of Savings
A lack of money in the bank doesn’t only lead to financial worries throughout your life, but it could prevent you from achieving many life goals.
If you dream of owning property, heading off on multiple vacations each year, and never worrying about another bill again, you must set aside a large nest egg.
According to The Balance, you should set aside at least 20% of your income each month. You could do this at a faster rate by cutting expenses, starting a side hustle, and making larger debt repayments.