About 42% of Americans say their household financial situation has gotten worse since the onset of the pandemic. Many are having to borrow from friends, family members, or banking institutions to remain afloat.
Are you focused on achieving financial freedom this year? Here are five simple steps that can help you pave the way. With these financial planning tips, you can save instead of stress.
Ready to experience sweet relief? Keep reading to learn how to take control of your finances today!
1Manage Your Money
First, you need to create a plan and make a commitment to stick to it. Otherwise, you might not realize you’re overspending until it’s too late.
Take a look at your last few billing statements. Where are you spending your money?
Split your spending into different categories, such as rent, transportation, food, and entertainment. Set a unique budget for each of these categories. Then, cut costs.
Where can you stop spending?
Setting a budget is one of your most important steps to financial freedom. With a budget, you could dig yourself into a bigger hole.
2Deal With Debt
The average American has $90,460 in debt. You’ll struggle with achieving financial freedom if your debts are weighing you down. Instead, you want to build your wealth for the years to come.
Focus on your largest debt. Dedicate the most money to pay that one off, while dedicating smaller amounts to your other debts. Once the largest debt is gone, focus on the next largest.
Once every debt is gone, keep living debt-free!
3Consider Your Career
If you want to achieve successful wealth planning, you need to consider your income.
First, make sure your current job doesn’t hit a dead-end. If it’s not taking you anywhere (or you’re miserable), get out.
Instead, look for a job that gives you a chance to grow professionally and financially. Can you make more money as your value increases? Does this job suit your 10-year plan?
Choose a job that will help your financial planning goals.
What happens when there’s a financial emergency? Do you have a rainy day fund, or will you need to draw from your retirement?
Try to create a short-term and long-term savings plan. You can cover any sudden emergencies and big purchases. Meanwhile, you’re still investing in your future.
Speaking of investments, long-term investment options can help your money grow. It helps to start right away (giving your money more time to compound interest).
Consider different forms of investments, such as real estate and taxable investments.
If you’re not sure where to start, work with a financial advisor. They can help you take steps to financial freedom and set your future up for success. You can learn more about developing a wealth strategy at wealthability.com/wealth-strategy.
Achieving Financial Freedom: 5 Steps for Success
Don’t live in debt! Instead, use these five tips for achieving financial freedom. With these tips, you can take control and plan for a wealthy future.
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