When we celebrate Independence Day, we remember the historic day our country declared freedom from Great Britain’s rule. Your independence does not have to stop with one celebration. Just because the holiday has passed doesn’t mean you can’t become financially independent and secure. Think of your finances and what it will take to accomplish such a feat. The United States of America gained independence in 1776 – make this the year you conquer your finances with these seven simple steps to financial independence.
7 Steps To Becoming Financially Independent
Do the following to achieve your financial independence goals:
1. Save money
It may sound cliché, but saving your coins will always benefit you. Think about it – what if you have an emergency and no money? The situation can get tougher if you don’t have anyone to rely on. So, why not save yourself the torture and make a little nest egg? Put it away in a savings account with a separate bank so you aren’t tempted to dip into it when you log into your account online.
2. Carpool
There are several benefits to carpooling that will ultimately save you money and nudge you toward becoming financially independent. Firstly, gas is expensive. I’d personally much rather torch my car than pay for gas. But luckily there are much more sensible options for steps to financial independence.
Carpooling allows you to chip in a portion of gas costs instead of carrying the burden alone.
It also saves your tires from wearing down and spending money on car maintenance. Plan to be ready early, though.
If the driver has to pick up other passengers, you don’t want to be the one holding everyone up. If everyone carpooled once a week, traffic would be reduced by twenty percent. That means less pollution and more clean air. Look at you saving money and the environment at the same time! 🙂
3. Create a New Budget
Talking about money can make anyone’s skin crawl, and the mere thought of budgeting can make you want to gag. We get it! It is totally understandable, but to become financially free, you’ve got to … like Nike says, “Just Do It!”
If you don’t have a budget, make one. If the one you have isn’t working for you, create a new one. Becoming financially independent necessitates knowing your spending limits. Look at your budget every day and remember the goal you want to accomplish! Even if you must recite affirmations like, “I can be financially free,” every day, positivity goes a long way. You can do it!
4. Pay Down your Credit Cards
The fourth of the steps to achieve financial independence is to pay down your credit cards and refrain from making additional purchases while in the “pay-off” phase.
Using your income to make purchases instead of credit will keep you out of further debt. If you make payments on your credit card and continue to charge purchases to your card, it will keep you in a never-ending cycle of debt. Your goal is to get out and get out for good.
5. Cut Costs
Becoming financially independent means that you have accumulated enough financial resources to cover your living expenses without having to work for your money. To accumulate money, ensure that you’re keeping something aside from all you earn.
If you are living above your means, it would be wise to cut back immensely. However, if you live from paycheck to paycheck, look at your expenses and see if you can cut them down. Do you watch a lot of TV? If not, ask yourself if you could go without cable. A Netflix or Hulu subscription could save you big bucks. Try dining in instead of eating out. If you need other ideas on how to cut costs, click here. The sacrifice will pay off once you are free from debt.
6. Pseudo Lay-A-Way
Next in our steps to financial independence is the matter of purchases. Where in the rule book of spending does it say not to spend? It doesn’t! It’s okay to go shopping even when in high gear on the journey to becoming financially independent. Just don’t break the bank. Put yourself on a budget. Know what you want before you go inside the store, make your purchase, and run like the wind. We don’t advise you to put on horse blinders, but hey, whatever it takes 🙂.
If you want to buy something expensive, plan for it. Set aside a certain amount of money and save towards your big purchase. Then, put some money away every month until you have enough.
7. Join a Support Group
Hello, my name is [insert your name here], and I’m a shopaholic. We’re kidding! It is very hard to go on this journey alone, and it’s okay to find a support group or a friend to encourage you when you need it or to yank the credit card out of your hand, cut it into tiny pieces, and drag you out of the store. Being around people who know your goal of becoming financially independent can keep you focused and will help you get to the finish line.
No matter what, stay focused. You can become financially independent and free from debt. It is an attainable goal! All you have to do is take the steps to financial independence, essentially changing your spending and saving habits. When you reach your goal, you can have your own fireworks, just like the Fourth of July festivities nationwide. Wait—that’s illegal … Maybe you can throw confetti?! Lol!
Anyway, celebrate! The fruits of your labor have finally paid off.
Take A Loan To Help
If high-interest loans tie you down, the first thing to do on your journey to becoming financially independent is to free yourself from them. Get a Minute Loan Center loan and consolidate your debt into one affordable loan. We aim to set up our clients for financial success, and we endeavor to keep our interest rates relatively low. Apply for a loan today and take the first steps to achieve financial independence. Contact us for more information or help with your loan application.
Kevin brings over 15 years of experience in marketing, with a specialized expertise in growing online businesses. As the Director of Marketing at a leading FINtech company, he employs innovative strategies to enhance brand visibility and customer engagement. Kevin’s passion lies at the intersection of technology and finance, where he pioneers solutions that not only meet but exceed consumer expectations. His commitment to leveraging his expertise ensures impactful results and the building of lasting relationships in the digital landscape.
