All of us understand the importance of money. We need money to provide for our basic needs, save up for the future, and maybe even splurge on some luxuries. The problem is that, for many of us, our spending habits have gotten us into trouble, and we need help achieving financial independence.
So what is financial independence? Financial independence can mean different things depending on who you ask. It could refer to managing your finances in such a way that you can cover all your bills with some left over for savings or having enough to be able to save for a home or for retirement.
Whatever your definition of financial independence is, here are some ways to begin controlling your money instead of having it control you:
Get Out of Debt – Accumulating debt, whether it is through credit cards or student loans, is a viscous cycle. Borrowing money always comes with interest rates which means you pay back more than you originally had on loan. Credit cards are the worst offenders with extremely high interest rates. Getting out of debt as quickly as possible frees up significant financial resources.
Decide What You Can Live Without – One of the worst lies of our modern society is that having more stuff will make you happier. In reality, it is surprising what you can live without. Decide what kinds of things you can live without that will save you some money in the long run like cable TV, magazine subscriptions, etc.
Pay With Cash Only – It is easier than ever to buy things with the advent of credit cards and online purchasing. The downside of this is that the click of a button could set you back considerably. Some people find that managing their everyday spending by using cash keeps them from impulsive buying.
Set a Budget and Track Your Expenses – You don’t know where your money is coming from or going to without keeping tabs on it. Learn to control your spending by tracking how much is coming in and where it goes every month. You can then set a budget for how much you want to spend on different things like food and gas. There are a variety of ways to help you do this.
Establish an Emergency Fund – It never hurts to be prepared financially for the unexpected. The uncertainty of life means that things happen that you won’t see coming. These could include the loss of a job, medical expenses, and unforeseen repairs. Emergency funds can help to get you through in a bind.
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Overheard a group of seniors talking at the coffee shop about what’s going on in the country. How they felt that the government no longer had the back of the John and Jane Does in this country. How they have been lied to and the politicians had changed the rules of the game to benefit themselves. They loved their country, but pretty much don’t give a tinkers dam about the politicians who put us into this mess! The bankers where also on that list, along with Obama. I was trying not to hear there conversations, but when your one table away it’s kind of hard not to do so. They said something interesting about debt. If no one is working and the dollar becomes worthless why pay back any debt that you have. From credit cards to car loans, from home mortgages,to school loans, just don’t pay it back. Someone said that they borrowed that money on good faith over the past years and it would not be the right thing to do. However after saying that this veteran said he was disabled and on a fixed income and living paycheck to paycheck. He barely had money to buy food and medicine. He was having a hard time paying back what he owed. They left and I still wondered if that was true and if you could not afford to live, should you attempt to pay off your bills. In our group at the coffee shop, several had kids with college debt totaling over $50,000 to $100,000 dollars and still other had huge doctor and hospital bills that they were paying on. So what say you. Do I pay off my debt or not to pay off my debt. If the government can do the same thing, why can’t the citizens of this country do the same thing.Awaiting your answer. thank You..SP