How To Become Financially Independent And Start To Love Your Bank Accounts
Are you struggling with your finances? Are you living paycheck to paycheck?
You are not alone. As many as 60% of Americans are doing the same. Many of my clients are reaching out with ever so dreadful need to file bankruptcy. That, of course, should always be your last resort.
However, with some practice in place, you can become financially independent and reach your dream of a complete financial freedom, the dream of being debt free.
- Visualize first, then plan.Anyone’s vision of financial independence can probably use a reality check. The path to financial independence may be considerably different at age 20 than it is at age 50
- Budget. You need to track down all your expenses and your income. If you don’t use spreadsheets and computers, use paper and pen. Measure your income and subtract expenses. This step is essential.
- Spend less than you earn.If you rely on credit cards, you are not doing a good job. Pay those balances off every month. A rule of thumb is to put 10-15% of your income into savings or investment every month
- Build smarter safety nets. Emergency savings are important. However, have you paid attention to your insurance deductible? Is it too high because you want to keep your premium low? If so, would you be able to pay your deductible.
- Eliminate debt.This goes without saying. Non-housing revolving debts should go first, They are the major cause of financial crisis.
- Consider your career.You are going to make changes as your goals in life change and as you are getting older.
- Downsize.How much do you really need? Is it what you really use to make your life more pleasurable. Sell what cost you more to keep than yo enjoy.
- Invest frugally.Always and only buy assets that generate income. Do your research.
At all times, stay connected to your financial situation and know where you are. Even if that’s not where you want to be. Emotions aside, finances are business. Businesses can hit a rough patch. You are the CEO of your own finances.