Financial Independence Through The Years – Part 5
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Our latest series discusses financial independence through the years and the various stages people traditionally go through to reach financial freedom. Once you establish your budget, pay off credit and reach a comfortable position on your own, everyone wants to be free from reliance on regular employment.
When you trade dollars for hours, often you wind up living from paycheck to paycheck. Getting past this hurdle is the hardest part. By saving every week, you can build a nest egg that earns interest. Over time, you will be able to live without relying on employment. Other ways to build a nest egg including establishing your own sources of passive residual income. Through creative endeavors, sales and a variety of enterprises, you can earn ongoing income for work you only did once.
Whether you refer to it as retirement or financial independence, you are truly free when you don’t need to rely on your employment because you have passive sources of income that cover your monthly bills.
Lowering your expectations and expenses is another way to reach financial freedom more quickly. Do you really need an estate or would you be content with a cottage if it meant you were financially free?
By saving more, spending less and investing your passive income you can earn more passive income. Value your time and make the most of the work you do by handling every penny carefully. The financial independence you crave will be right around the corner.
Tags:Debt Management, Financial Freedom, Financial Independence, Passive Income Residual IncomeFinancial Independence Through The Years- Part 4
We’ve discussed the establishment of financial independence through the years in this series. By examining the stages of financial independence, you can accelerate the process to reach your goals more quickly. Recognized the essential steps to financial independence also puts you on the right road toward financial success.
Our series discussed becoming financially independent from parents, dealing with credit and making major purchases. Avoiding credit is an important way to be financially independent. Even if you use credit to get past financial hurdles in the beginning, you must pay it off before it takes over your life and your available income.
Today we will address the simple yet complicated issue of setting a goal. You must set a goal to become financially independent or you will never achieve it. You need to make a strong commitment to spend less than you earn. Pay off debt with large payments rather than making small payments that pay off little more than the interest charged on the debt. Cover basic expenses and control your spending habits, which is often easier said than done. However, when you master the ability to cover your bills and spend less than you earn you are already in a financially free position.
A solid debt repayment plan and avoiding additional debts will help you attain your goals. Tomorrow we will discuss employment and how to get financial independence more quickly.
Tags:Debt Management, Financial Freedom Financial IndependenceFinancial Independence For Independence Day
Financial independence is a natural thought on Independence Day and we are taking a break from our series about financial independence through the years to discuss it. On Independence Day, you should feel free and happy about your freedom. If finances are holding you back from feeling content and free, it is time to address your level of financial independence.
While we enjoy freedom of choice, freedom of speech and a variety of personal freedoms, we often rob ourselves of financial freedom. As we continue to work at a dead end job or max out our credit cards, we are robbing ourselves of the very freedom we crave. Attaining financial independence means stepping out of the box onto unsure territory.
Financial independence should be an exhilarating, rather than a frightening journey. Your financial freedom is as important as your personal freedom. In fact, without financial independence you can never truly be free. If you are tied to a job for hourly wages and endless debt, freedom feels far away.
Take control of your destiny. Stop using your credit cards and start paying them off. Start your own business and work at night and on weekends to build your empire. There are a variety of flexible online opportunities for people with all types of skills. Find out what you like best and pursue a business in that area. When you have passion for your subject, others feel it and the opportunity becomes more profitable.
Don’t let your current circumstances hold you back. Financial independence takes time, effort and patience but is well worth it. Once you achieve financial independence, you will always have a sense of complete freedom in your life. If you start today, you will be amazed at how far you come by next Independence Day!
Tags:Debt Management, Financial Freedom Financial IndependenceFinancial Independence Through The Years – Part 3
Our latest blog series discussed financial independence and the typical stages people go through on their journey to financial freedom. From moving out to avoiding credit, we’ve discussed ways to reach for financial independence.
Today we will discuss the use of credit. Our last entry mentioned how important is it to stay out of debt. However, most people wind up taking on debt after they live on their own for awhile. Paying rent for an extended period of time inspires many people to purchase their home. Without hundreds of thousands of dollars in cash, a mortgage becomes a loan people take on to own a home.
If you do pay for a house with a mortgage, put as much money down as possible. Double up payments to pay off the mortgage more quickly. Avoid taking out other credit. When you are on your own and then assume dependents such as a spouse or children, credit becomes a way to get the money you need when you need it. After all, you are a parent yourself and you have been free of your own parents for years. Often it is better to swallow your pride and borrow from family rather than paying off high interest credit cards for years.
Finally, purchase used vehicles with cash rather than taking out a car loan. This is another payment that will rob you of financial freedom by charging interest. If you do have overextended credit, start paying down your balances. A credit counselor or accountant can assist you with getting started.
Tomorrow we will talk about financial independence and setting adult goals.
Tags:Debt Management, Financial Freedom Financial IndependenceFinancial Independence Through The Years – Part 2
Our discussion of financial independence through the years deals with the various phases people traditionally experience as they reach toward financial freedom. These steps may take some people only a few years while others may struggle for a lifetime. Understanding the road ahead helps you make better decisions to reach financial independence more quickly.
The last entry discussed the first step toward financial independence occurs when you complete your basic educational goals and live successfully on your own for a few months without assistance. Once you know you can survive on your own, you feel a sense of accomplishment and a greater ability to attain financial independence.
When you are free of debt, you have total financial independence. While many people reach toward building credit, is this really the wisest step to take? When you have debt, you are harnessed to that debt. If you paid off educational loans, you know that debt takes up a portion of your income. When you have no student loans, no mortgage, no credit cards and no vehicle payments, you are free. Your basic expenses include housing, taxes, food and insurance. The rest of your money is yours to spend as you wish. You can save for that awesome house or car so you don’t pay interest!
Tomorrow we will discuss dealing with credit, working for pay and moving on to a better place so you can have financial independence in the near future rather than as a distant goal.
Tags:Debt Management, Financial Freedom Financial IndependenceFinancial Independence and Debt Management
Financial independence seems even further away when you carry significant debt. Almost seven million Americans have short term debts that exceed 20 percent of their annual income. Debt management programs consolidate debts into one payment to help people pay off these ongoing debts for greater financial freedom.A debt management program can lower your payments significantly and help you pay off debt within three to five years. As you pay off debt, you rebuild your credit rating and get rid of all those harassing letters and phone calls to collect the debt.
A credit counselor works with you to reduce your monthly payments by reviewing your current financial situation and contacting your creditors. The result is reducing interesting charges, fees and monthly payments so you can start to get rid of debt. You make one monthly payment to the debt management company who disburses the funds to all your creditors to pay them off. Your creditors will still send you statements showing your debt getting paid down.
Often people save anywhere from 20 to 50 percent on their outstanding debts by talking to a credit counselor. As a result, debt is paid off more quickly while your credit rating improves. The first step toward true financial independence is to get rid of those nagging short term debts.
Tags:Debt Management, Financial Freedom Financial IndependenceFinancial Independence So You’re Not A Servant To Debt
Financial independence cannot be achieved as long as you remain chained to high interest debts. If you remember your history lessons, you will recall studying about indentured servants such as share croppers who worked for free to pay off an obligation. When your hard-earned money is allocated to high interest credit card and loan debts, is there much of a difference?
If you are drowning in credit card debt, you are not alone. There are literally millions of folks in America with a total of over 2 trillion dollars worth of revolving consumer debt. More than 60 billion bucks of credit card debt gets “charged off” as uncollected annually. Debt is like an epidemic sweeping the nation and taking control of more lives everyday. Are you on this distressing bandwagon? If so, it’s take to get off and start reaching toward financial independence.
Look realistically at what you owe and how much you’re spending on interest. Do you feel sick now? If so, it’s time to start making major changes. Stop using your credit cards and start paying them down. Earn extra money by starting your own passive income enterprise so you can pay more toward your outstanding balances. Create a budget and live by it without fail. Review your expenses and trim the fat wherever you can. When more money goes out every month than comes in, it may be time for professional financial advice from an accountant, debt counselor or financial planner.
Financial independence is an attainable goal for everyone, regardless of how much debt you are in. Figure out the damages and work toward eliminating them for a financially free future so you don’t feel like an indentured servant.
Tags:Debt Management Financial IndependenceTeaching Financial Independence To Children
Teaching financial independence to children is a key element to success. Many of us grow up with a myriad of misconceptions about earning money and becoming financially free. Giving children essential skills at an early age will prepare them for a more secure future.
Education – financial independence depends on it. So how do you teach your children about money? Give them an allowance and let them learn firsthand. By kindergarten or first grade, most children are ready to receive weekly allowances. If your little ones get upset, they can get a few shiny pennies until they are old enough to differentiate money and the various amounts. However, don’t hold the older children back for the little ones.
Allowance amount vary based on the financial needs and age of your child. Guidelines include $1 per grade level, starting at first grade. You can also pay an allowance equal to half the child’s age. Pay the money on a regular schedule. Set up expectations for using the cash, such as saving 10 percent and donating 10 percent. You can also have your children put 10 percent in college savings then allow them to spend the rest as they see fit.
An allowance should be separate from chores, which should be performed regardless of pay. Parents can offer inspiration by paying extra for children completing chores outside their regular scope of daily responsibilities. This also teaches your children how to be enterprising and earn extra money when they need it. Avoid lending money ahead to your children – after all, we want to discourage credit. If your child needs to borrow money for an important reason, such as a school trip, make sure the money is promptly repaid on a schedule or withhold a portion of their allowance until the debt is covered.
You can encourage your children to save more by offering to meet their savings, sort of like their own little investment or pension plan.
Finally, if your child spends money on a toy that breaks the first time they use it or wastes their allowance on candy the first day then can’t go out on the weekend, these are learning experiences. Instead of “I told you so” let your child learn from their mistakes to become a wiser consumer.
Teaching financial independence to children starts with a weekly allowance and how its handled.
Tags:Debt Management, Financial Freedom Financial Independence
Financial Independence and Women
Financial independence is often a subject that both men and women are unsure about. In some situations, a father, husband or boss takes control of finances and women feel they don’t need to but this simply is not the case. No matter what your situation, women can become financially independent now based on their own merits rather than the efforts of others.
With a few simple steps, you can be on the way to financial independence without the help of anyone else. Start by setting specific goals, such as when you want to retire or how much you want to earn. Be realistic about your goals and realize they take time, patience and discipline to achieve.
Organize your personal finances by having a budget and tracking all income and expenses. Consider your assets in your overall value as well as loans, credit cards and other liabilities. Decide from your budget how much you can devote to investments or business enterprises.
Establish sources of passive income by investing in stocks and bonds or creating your own business such as affiliate marketing, blogging, ebooks or a website. Have a financial advisor assist you with investments and keep your choices conservative when you start.
Carefully monitor the results of your investments and business enterprises and make necessary changes to keep them profitable. With a bit of knowledge and effort, passive income is easy for women to achieve on their own for greater financial independence.
Tags:Debt Management, Financial Freedom, Financial Independence Passive IncomeHow To Become Financially Independent – Part 7
Our series about how to become financially independent deals with your perceptions of money rather than specific techniques for earning money. By changing your attitudes about money and how it is spent, you can actually attain the financial independence you crave without getting a second job.
Today we will discuss additional attitudes about money that may hold you back. For example, do you really comprehend the difference between investing your money and spending your money? When you spend your money, you get what you paid for and nothing else down the road. Spending your money can be an endless process that leaves you in debt with little to show but a bunch of unwanted junk. Investing your money means you may yield a return on the money you used through interest in a savings account or other wise investments. Investing your money gives you hope for the future while spending your money puts you in a position of needing more cash.
Also, if you feel that financial freedom is impossible or a goal that you can never achieve, most likely it will be. Having a negative attitude thwarts your ability to think clearly and find realistic ways to get out of debt and attain the financial independence you want. Positive thinking can take you a long way when it comes to getting started on the path to financial independence.
Tomorrow our final entry in this series will discuss the importance of setting goals and earning passive income so you can truly learn the secrets to how to become financially independent for a brighter future.
Tags:Debt Management, Financial Freedom, Financial Independence Passive Income