Obtaining financial freedom may not be easy, but totally attainable. Experts show that your income does not necessarily matter if you want to achieve this goal. Whether you are receiving $100,000 or $10,000 per month, you can definitely have financial freedom as long as you incorporate the struggle with the right values. In fact, there are some people whose paychecks reach 5-6 digits who still suffer from financial debts. What should then be done to have financial freedom?
Prioritize your Needs over your Wants – Which do you think is more important – that Louis Vuitton bag on sale or that bag of rice needed for the week’s supply? Given the high price of this type of designer bag, each piece is equivalent to a sack of rice even if it’s just a knock-off.
Pay each Debt Little by Little – If you are indebted to your relatives, pay these debts little by little, so it won’t escalate to an amount impossible to pay. This is also applicable to loans, which should be settled every now and then until everything has been cleared off. Before doing so, list all your payables first and sort them out according to their date of maturity and date of indebtedness. This is ideal to avoid incurring interests.
Put a Halt in your Unnecessary Expenditures – This is a must if you want to be able to set aside enough money to pay off your debts each month. A little bit of shopping each week may practically consume the amount that’s allocated for a certain debt. Have self-discipline in this aspect and you will thank yourself for it.
Have a Good Financial Plan – Just like creating a household budget, make a list of your cash inflows, monthly bills, and savings. If you still have enough money for supposedly wants, use this to pay your debt. Say goodbye to splurges and unnecessary expenditures for the meantime. After all, you will definitely get to that in due time. Meanwhile, you can even stop saving and assign the money to your debts first. Once you are debt-free, you can then start saving again.
Earn More – This is one of the easiest means to pay off your debts. Having more jobs mean increase of income, this can help minimize your debts hastily. You can either apply for a part time job in other companies or go for a freelancer online. However, you need to make sure that the income you get from your part time should be spent to your debts, and not to your wants.