Secrets to Financial Independence
Many people frequently find themselves in debt. It seems to keep piling on, without ever having an end. However, there is hope that you can become free of financial struggles. Financial planning comes from hard lessons learned or from attempts to achieve financial security. Many people often fall prey to the entitlement mentality as they create mountains of debt. They might feel that, because they work in high-stress professions, they are entitled to treat themselves by splurging on gifts or pampering themselves every paycheck. Having that mentality of entitlement only keeps individuals as slaves to their debt and trapped in enormous credit cards bills for years.
In order to free yourself from what could become very burdensome debt issues, practice these steps to live a life of financial independence.
STEP 1: List all of your debts/bills, and pay off the smallest debt first. Doing so allows you to decrease your debt over time as you attempt to get out of the financial hole.
STEP 2: Stick to your budget. Review your spending habits by comparing your wants to your needs.
STEP 3: Give yourself a weekly cash budget, which will force you to spend only the cash that you have on hand. Once it’s spent, you’re finished spending for that week.
STEP 4: Pay extra on your credit card bills until they are paid off in full.
STEP 5: Once the credit cards are paid off, use that extra money to save or invest.
STEP 6: If you are fortunate to have stock options or IRA investment options at your place of employment, utilize them. Invest, become educated about your investments, diversify your investments, watch the performance of your investment, and review your statements quarterly.
STEP 7: Put your tax returns to good use by paying down your mortgage. Save it for use toward a down payment on a house, help pay off student loans, or use it toward saving for yours or a child’s college tuition. By using the tax returns to pay down debt, it will help decrease debt significantly.
You can live the American Dream by utilizing credit to your benefit. After rebuilding from years of financial hardship, other individuals have applied the above financial principles to their budgets and are now a step closer to achieving financial freedom—and you can do the same. ______________________________________________________________________________