Finances are hard, right? Well, they don’t have to be. Sometimes it may feel like you’re drowning in debt or that your finances are completely out of your control. You can change this. You can take control of your finances. Yes, YOU. Just take a look at these five tips, take action, and watch yourself swim in financial freedom.
1. Set financial goals
It’s kind of like exercising. If you have no end goal, why do it? But if you have something to work towards, like a weight goal or a 5K, then you’ll exercise often and hard. The same comes to finances. You need to set short-term and long-term goals, something you can attain. Maybe it’s a new house, donating to a local charity to admire, or simply maintaining your current standard of living. Whatever it is, short-term goals (i.e. buying a new car) and long-term goals (i.e. retirement) will help push you to be more financially savvy and push you towards financial freedom.
2. Adjust your spending
What better way to financial freedom than to take control of your spending? Evaluate what you spent your money on last month. Was it higher than that month’s income? If so, you have some adjusting to do. You can start small – maybe eat at home more or resist purchasing that awesome pair of shoes you’ve been admiring. You can go bigger too, if you wish. That weeklong trip to St. John’s you’ve been dying for? Maybe take a long weekend and visit Ocean City instead. No matter what you do, make sure your spending isn’t greater than your income.
3. Review your bills
Once a year you should check out your bills and make sure you understand what you’re paying for. This includes credit cards, cable, and even rent. Terms change all the time that you may be oblivious to. Did you know you can ask for lower rates on some of your bills? You can! For example if you’ve been a loyal customer to a particular cable company and you always pay your bill on time, you can lower your rates for cable. By doing this you can save money on the same service you’ve been getting.
Also, look over your bills to see if you’re still paying for something you don’t use. Are you still paying for a gym membership you haven’t utilized in a year? Cut it! Reach financial freedom by making sure your money isn’t going towards things it doesn’t need to.
4. Pay yourself
It seems simple right? But a lot of people forget to reward themselves for the work they do. Set up direct deposit and have some of your paycheck go into your savings account and some go into your checking account. By doing this you’re putting money into your pocket that you can use for more immediate expenses, such as groceries or gas. Instead of taking out of your savings to pay for these things, it’ll be already available for you in your checking. Watch your savings grow instead of deplete.
5. Educate yourself
Finances are tricky and ever evolving. You don’t have to be out of the loop. Educate yourself and learn how to reach financial freedom. Read up on how to get out of debt and how to make the most of your income (even how to increase it!). No matter what, we are here and we’d love to help you. If you have any questions don’t hesitate to contact us via phone or web.