When people talk about Independence Day, they often see it as a day off from their daily grind: they will dine their hearts out, shop until they drop, and party all night long. While it may sound like a good idea, that kind of thinking is not the mindset of people who are seeking to become financially free. Since it’s Independence Day celebration, it is the right time to discuss your own “Independence Day”: the day where you can finally be free from the shackles of debt. With this topic in mind, how can you achieve your financial independence?
Start settling your debts
If you want to have a systematic approach to your finances, the very first thing you have to take care of is your debt. Whether you have debt in the form of credit card bills or money borrowed from a friend when you were in a pinch, your first course of action is to eliminate debt. Aside from setting off an endless cycle of debt, some debts will plunge you further than the spiral because they accrue interest until you can settle it in full. Before you even start aspiring to become financially free, settle your debts first.
Live within or below your means
Once you’ve settled your debts, it’s time to eliminate one of the main culprits of debt: living beyond your means. Regardless of how much you earn, the moment you try to step up your lifestyle to the point of burning money unnecessarily, you are depriving yourself of the chance to become financially free soon. Think about it: you can let go of several luxuries in life like expensive smartphones, frequent trips abroad, and other things you can live without. Live within your means, and you can have enough to save to buy your way out of poverty.
Start a savings account
When you have excess money, what do you usually do with it? Do you buy something to make yourself feel good? Or do you throw a party to enjoy life’s greatest pleasures? If you are willing to get out of the oppressive shackles of poverty, then you will definitely put your excess money in a savings account. While the gains from savings account may not be substantial, the important lesson here is learning how to save–and that is a much bigger yield than the interest you can earn from your savings account.
Snag every opportunity to save
Seize the day: that should be your motto when you want to live a financially independent life. Whether it is taking advantage of discounts on certain products or using your credit card to rack up rewards whenever you shop, you need to see every possible opportunity that will allow you to save. If you rewire your head to find every angle as an opportunity to save money, the possibilities of saving money is limitless.
The road to financial independence is a long one, but it doesn’t mean that it’s unattainable. Once you’ve taken the first step towards your personal independence day, it’s only a matter of time before you can free yourself from debt.