Unfortunately, around 61% of UK adults aren’t financially independent, and 15% think that it’s not something that they can achieve. However, it is possible for anyone and everyone to become financially free.
Have a look at the tips below and it could lead you to retire early or cut the cord from credit or family support:
Set Realistic Goals
You need to know exactly what you are aiming for. Financial independence is definitely a realistic goal, however, you need to have other goals to get you there. Do you want to own your home with no mortgage? Maybe live from your bank account and no credit? Or retire early? These types of goals will help to get you where you need to be financially independent.
It’s a good idea to get familiar with information about debts such as Debt to Success System – DTSS videos too.
Budget For Your Freedom
Whatever your goal is, whether it’s big or small, it helps to break it down into smaller chunks and more achievable steps. Start by setting yourself a budget, and a financial plan that includes budgeting, savings, and investments. Every spare pound and penny beyond essentials like clothes, shelter, and food, can be used towards your end goal. To budget properly make sure you set it to a realistic level but bear in mind that you can amend it if you need to.
Always Live Below Your Means
This one may seem difficult to imagine as many of us tend to live from paycheque to paycheque. Think about how little of your wage you can live off of and try to do it as often as possible. There is a scary amount of people that like at or above their means, and then when emergencies or life changes happen they become stuck for money or can’t make the changes that they want or need to. Evaluate your regular costs, and plan to include savings and see what your expenses might look like if you could reduce your rent, or switch to cycling to work instead of using the train or bus.
Always Have An Emergency Fund
It’s surprising to know how many households do not have an emergency funs. But they are still aware that a single emergency like a car repair or home repair can completely wipe out their monthly budget. Doing this can hinder your goal of financial independence so it is essential that you always have an emergency fund available for you and your family. It needs to be part of your financial plan. Even if it’s a small amount, send the spare money you have each month to a savings account.
After following these tips towards financial freedom, the most important thing for you to do is to follow any budget that you have put into place, live below your means, and prioritize any savings no matter how small.
Bear in mind that you may make mistakes and sometimes it won’t go to plan. Remember that this is a continuous process that will take organization, time, and discipline.
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