Being in charge of your finances requires a lot of discipline and commitment. The new flex in town is not flaunting shoes, wigs, phones, etc but it is saving money, investing, stacking coins, staying hydrated, and living your best life BELOW your means. Wondering how to achieve financial independence this new year? Here is some proven financial advice that helps one to achieve their goal of financial independence.
Related media: The 5 Stages Of Financial Independence
#1. Start Saving And Set Financial Goals
Savings helps us to prepare for the unforeseen in the future. It gives you a sort of insurance against emergencies and goals. It takes a lot of dedication to saving constantly. On the flip side, setting a financial goal makes it quite easier to save since you are saving for a particular purpose. Always look at the bigger picture and what the saving seeks to do.
#2. Track Your Spending
Sounds cliché right? Well, this could be done daily, weekly, or even monthly. Get a notepad and record every you spent your money on. This way you know where and how much you have spent. This helps develop a healthy spending habit.
#3. Always Go Shopping With A List
This is something most of us are used to but do we stick to the list? Going shopping with a list isn’t just enough, what is important here is making sure you don’t buy anything extra outside the list. You stay within your budget and avoid impulse buying.
#4. Prioritize Your Needs Over Your Wants
Always go for the things you cannot survive without first and if there are any monies left? You can buy other things you want. Make a list and categorize the items under them under needs and wants.
#5. Avoid Loans And Debts
Loans and debts always cause huge setbacks in our finances. A major key to saving and becoming financially independent is to avoid loans, credits, debts, etc. It is clear and natural you might need a loan but do not make taking loans a habit. Be smart when it comes to money. It might seem easy to pay loans back, but in reality, you will face many challenges.
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Written by: Lydia Anobil, Mon, Feb 28, 2022.