While we’re on the subject of freedom, financial freedom can seem very elusive, and the beginning of this year has certainly not gone according to anyone’s plan. But that doesn’t mean it isn’t a good time to take stock of past decisions and set your sights towards financial independence.
How is your plan going so far? Check in on your investments, your savings, your income to debt ratio. Speak with your fiduciary advisor and make the necessary adjustments needed in order to survive the earlier part of the year, especially if you’ve veered off course. While outlining and shifting, remember to always keep your financial goals realistic. By planning for unreachable things, we will be unsuccessful, find ourselves further from the actual goal and feel like we’re failing.
Many people find themselves in some financial trouble. It’s nothing to be ashamed of, especially considering these current peculiar circumstances. If you can’t pay off your debt, make it a priority to implement a plan and begin paying it down immediately. Focus on tackling the highest interest rates first, and move on from there, always paying the minimum when you can’t pay more. Avoid, if possible, taking on any new debt, like a credit card. Although it can help in the short term, it can be a slippery slope and contribute more to debt than to getting out of debt.
Whether it be a hobby, or a freelance option, consulting, or just picking up extra shifts. If erasing your debt and finding financial independence is important to you, then earning extra income should be as well. Know your worth and your value and make the next move to achieve your financial goals. Start working a side job on the weekends, ask for that promotion, or better yet, monetize your hobbies.
We watched our parents do it and said that we would never get so caught up with our neighbors. But many people do get trapped trying to “keep up with the Joneses.” Ignoring what people around you are buying is no easy task, but you must keep your eyes on your own prize, not your neighbor’s. Their situation may be completely different from yours, and if you try to match them you’ll find yourself struggling with more debt, not freeing yourself from it.
Use your time wisely and spend your money in a smart way. Financial independence is a lofty, but very attainable goal. If complete independence is not the target, these decisions, steps and plans will help you reduce your debt, and live a more financially sustainable life.