Does it sound like an illusion? Or a unicorn?
If you’re anything like the average American, you probably believe financial freedom is an alien concept. Considering that consumer debt in the United States has hit $14 trillion – an all-time record – it’s safe to say many people are struggling with all kinds of debt, from student loans to mortgages.
Here’s the thing, though. Financial freedom is real. You can achieve it, as long as you’re up to the task.
We’ve got you covered.
Continue reading to learn how to become financially free.
Take Stock of Your Current Financial Situation
The first step to achieving financial freedom is to develop a clear picture of your current financial situation.
How much money are you making every month? What about your expenses? How much debt do you hold? Do you have any valuable assets, like a residential property?
When you take stock of where you’re at financially, it’s easier to draw an effective plan toward financial freedom. If your finances are complex – perhaps you have multiple loans – you can hire a personal financial advisor to help you understand your current situation.
Draw a Debt Repayment Strategy
Debt is the one thing keeping most people away from financial freedom. This why a debt repayment strategy is central to your quest for financial freedom.
According to CNBC, the average American has $38,000 in personal debt.
If you’re one of these people, you’re probably wondering how you will ever clear that amount. The good news is it’s doable, as long as you make a good debt repayment plan.
If you’ve got multiple loans, for instance, you can consider debt consolidation. This enables you to get one big loan, from which you will get the funds to pay off all your other loans. A consolidation loan will typically have a lower interest rate compared to the average rate for all your other loans.
If debt consolidation doesn’t work for you, try the debt snowball method. This involves prioritizing paying off the loan with the smallest balance. The feeling of success that comes after paying off a loan will keep you motivated to pay off the other loans.
Increase Your Income
What comes to mind when you think of financial freedom? Someone with millions of dollars living their best life in some exotic location, right?
Well, to achieve financial freedom and live the life of your dreams, you need money –lots of it. As such, you have to find ways to increase your income.
If you have a regular job, don’t settle. A salary can only take you so far. Find a side job or start a part-time business – just whatever you can do to increase your income.
Keep Learning About Finding Financial Freedom
Finding financial freedom isn’t a quick process. It can take months or even years. This means you need to keep learning about financial freedom.
There are lots of online resources you can read or view. This guide is an excellent example of an online resource on finding financial freedom within a year.
How to Become Financially Free Simplified!
If you were wondering how to become financially free, there’s no doubt you’re now in a better position to achieve it. Just follow the tips fleshed out above and you will be well on your way to financial freedom.
Need more tips on personal finance? Keep reading our blog.