Everyone dreams about financial independence. As we grow older, most of us love the idea of being able to not have to borrow money from mom and dad when that entry-level salary isn’t what we expected it to be. Financial independence lets you have more personal time while still being able to earn substantial income. A song once said “there’s no dollar sign on a peace of mind”, and that’s the truth! It’s time to cut the cord from mom and dad and think about the future…by yourself. Financial Independency may seem far away, but if you start focusing on three ways to prepare, you will be on the road in no time.
Ball on a Budget
The financially independent life means living a frugal one. Learn to budget.
Focus on spending less than what you make, reducing expenses where you can, and setting aside a portion of your earnings to pool into a fund or savings plan. As many of us have seen during the recession, anything can happen in the job market. You’ll be able to rest easier at night if you have savings in the bank rather than remembering the 12 proseccos you drank to celebrate it being Friday. Make a budget, and stick to it.
Pay Off Credit Card Debt
It may seem like a crazy boring concept, but its tried and true. When you leave balances on your credit card, you’ll end up paying interest for every month you let it slide. Don’t forget, credit cards are linked to your credit, so you’re losing points on your score when you max out each card. If you can’t pay the whole balance off in one swoop, focus on paying more than the minimum and add into your budget a strong payment monthly until it’s paid off.
Freelance on Your Off Hours
If you want to get ahead, you have to work harder. If your salary isn’t cutting it, how about finding other options of wealth? While this may seem like an antithetical concept to the "Not Working" idea of financial freedom, getting a second, third, or even fourth source of income is often the easiest way to be financially free. Many freelancing options offer working when you want to work. Try job-recruiting sites to look for freelance positions, and set your schedule to what you want it to be.Or, for the crafty, start an Etsy store and do something that you can channel your creativity. Remember to not take on too much! A work life balance is a must!