Here are 10 steps that will help you down the path to financial independence.
- Come Up with a Plan – Take a look at where you are and where you hope to end up. Be realistic when it comes to factors like income potential, paying off existing debt, and saving for the future.
- Create a Budget – Sit down and list all of your current expenses. This includes all expenses paid by you and/or other people. Find areas of your budget where you can cut down or eliminate entirely and start a little at a time. As you continue to make room in your budget over time, whether by cutting down expenses or making more money, start taking on the responsibility for the expenses covered by other people.
- Set Goals – Always having a financial goal you are working towards is going to help keep you on track when it comes to your financial plan. Have a series of short, medium, and long-term goals that you hope to achieve. Work on one of each goal at a time so you don’t get overwhelmed and lose focus.
- Build Savings – No one can predict the future, so having a nest egg set aside in case of emergencies will help prevent unnecessary credit card debt.
- Paying Off Debt – If debt is the biggest thing holding you back from financial independence, plan specifically for paying it off. For more information on creating a debt elimination plan, click HERE.
- Plan for Future – Even if it feels like a lifetime away, retirement will be here before you know it. Making investing in yourself a priority will give you a jumpstart in your retirement savings as interest builds up over the years.
- Continue to Grow – Continue to develop and hone your skills to make yourself a valuable employee. Here are some tips to help you prepare to ask for a raise from your current employer when the time is right.
- Monitor Credit – While it can be easy to put your finances on autopilot and let them run in the background of life, it’s important that you are always aware what’s going on with your credit. Each year, you can request three free copies of your credit report. Make sure that no lines of credit have been opened without your knowledge and that everything else is correct. The last thing you want is a surprise when you are actually applying for loans in the future.
- Financial Advisor – Depending on your situation, you may need to look into hiring a financial advisor. Click HERE for some more tips when it comes to picking the right advisor for you.
- Make Yourself Priority – Becoming financially independent is going to require sacrifice and commitment on your part. Ensure that you are sticking to your budget and that you are on track to hit your goals.
