In the society of Buy Now, Pay Later it’s difficult to maintain a debt free life. The feeling of financial freedom is one that cannot be compared to much else. Can you imagine not having to make regular monthly payments and being able to enjoy every penny of your hard earned cash, instead of making banks richer with your interest payments?
Create a Working Budget
The first step in gaining financial freedom is getting a clear look at your finances. Set aside time to dig into your finances and create a budget. You need to include every expense you incur, including those that aren’t monthly (such as insurance, taxes, school supplies, Christmas, etc). On the flip side, you also need to include every source of income you have.
Toss Out those Credit Cards!
If you’re looking to gain financial freedom, then it is essential that you make a commitment to not get into any more debt, which includes credit cards.
Control your Spending
There are areas of your budget that you are in full control of, like groceries and entertainment. Since groceries are usually a huge part of a person’s budget, take a long hard look at your grocery spending and find areas where you are able to trim. Stop all non-essentials in every negotiable category until you’re able to feel some financial relief.
Once you figured out where your money is going every month and you’ve trimmed every area you can — use your “saved” money to pay down any remaining debts. Start with the lowest balance and throw all of your extra money at it to eliminate it quicker. Once that debt is paid in full, take the money you were paying on it monthly, plus all the extras and apply it to the next debt with the smallest balance. You’ll gain momentum very quickly and you’ll see your debt disappear right before your eyes!
Gaining financial freedom is never as fun as it was to get into debt in the first place. It just plain hurts! Try to keep your eyes on your end goal of being free from monthly debt payments and set realistic goals for what you’re going to do once you’re done with this journey. It’s tough now, but soon the feeling of freedom will be so worth it!
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