Financial freedom means different things to different people. For some, it could mean that you never have to work again and you live in a house near the ocean, surrounded by nature, totally disconnected from the world. For others, it could mean that you are financially independent of your parents, moved out of the house, and have a job that supports you. However, although it means something different for everyone, one question holds true for everyone: What motivates you to get out of bed and go to work?
This doesn’t just mean your job. It also means whatever actions you take to reach those financial freedom goals you have. This could be anything from improving your credit score so you can buy a home, paying down your debt so you can relieve your anxiety, or finally taking the step to invest and build your retirement fund. Whatever it means to you, here are some steps that can help you achieve your goals.
1. Stop paying your credit card company
Credit card debt leads to anxiety, interest rates, and the fear that you will never get out of this debt. For some people, getting out of their credit card debt could be their financial freedom. However, your credit card company does not care as they make money off of the high-interest rates they are charging you. A website called AmOne is here to help. If you owe your credit card company $50,000 or less, they will match you with a low-interest loan that you can use to pay off every single one of your balances. You will only be left with one bill to pay each month and since personal loans have lower interest rates (AmOne starts at 3.49% APR), you can get out of debt much faster.
Another plus: no credit card payment for this one. AmOne makes sure to keep your information secure and confidential which is why it still has an A+ rating from the Better Business Bureau after 20 years. It only takes two minutes to see if you can qualify for up to $50,000 online, and you don’t even need to give a real phone number in order to qualify.
2. Add up to 300 points to your credit score
If you have the goal of leasing a car, owning a house, or even just opening a credit card in your name, you know that a good credit score is essential. When it comes to a credit score, it is important to be organized as it will play a huge role in any big purchase you make and it could save you thousands. A free website called Credit Sesame is here to help you. Within minutes, you will gain access to your credit score, debt-carrying accounts, and a bunch of personalized tips to improve your credit score. You will also be able to spot eros holding you back. Plus it only takes about 90 seconds to sign up.
3. Put aside money for your family’s future
Your checking account balance will not last forever, and many are concerned about how one’s family will manage after their income is gone. If your dream of financial freedom also includes your children’s financial freedom, you need to prepare in case it arrives too soon. You should keep a large amount of savings in the bank, but if you want to give your family up to $1 million, you should use term life insurance. A company like Bestow can help for as little as $16 a month. You can take advantage of it until you are 54 years old, and the sooner you do, the cheaper it will be. You don’t even need to leave the house to get a free quote from Bestow. It takes minutes and you will be able to leave your family a life that you wanted for them.
4. Start investing and save for retirement
Investing can seem overwhelming if you are new to the game. However, in order for you to reach financial freedom, letting your money sit and earn pennies is not going to get you there. If you feel like you don’t have enough money, that is not the case, You can even get free stocks (worth up to $200) if you know where to look. If you have $5, $400, or thousands of dollars, you can start investing with Robinhood. You have probably heard of it. Many beginner investors as well as pros love it because it doesn’t charge commission fees, and you can sell and buy stocks for free with no limits. It is also very easy to use.
In addition, when you download the app and fund your account, Robinhood drops a share of free stock into your account. It is random, but the stock could be worth anything from $2.50 to $200 and is a nice boost to your initial investments.
5. Become a better save and grow your money faster
Investing can be a fruitful and rewarding way to reach your financial goals, but you should not ignore smart savings. Make sure it is a place where you can put your money safely, but also make sure that it is still earning money. Storing it under the mattress will do nothing for you, and a savings account is not much better. However, there is a debit card called Aspiration that lets you earn up to 5% cashback and up to 16 times the average interest on the money in your account. You can also get a free Aspiration Spend and Save account after you confirm your email, and securely link your bank account so they can help you get extra cash. Your money is also insured by the FDIC so it is totally safe.
6. Cut your expenses and save hundreds
Having more money in your pocket will help you reach financial freedom sooner. There are probably monthly bills that cut down this saving dramatically. Thus, you should shop your options every six months which can save you a lot of money. It is probably not the first thing you think about when you wake up, but it doesn’t have to be as a website called Insure.com makes it very easy to compare car insurance prices. You just have to enter your ZIP code and your age and it will show your options. People have saved an average of $489 a year.
7. Makeup to $69 per hour as a small business owner
Your version of financial freedom might be working for yourself and earning more income. There are many perks of working as a bookkeeper and you can learn to become virtual bookkeepers through online courses on Bookkeepers.com. You do not have to be an accountant to be successful. You just need some decent computer skills and a passion for helping business owners tackle problems. It also helps to be very organized. You can make up to $69 an hour and there is no commute. This is a great option for parents who want a part-time job or recent college graduates who want to start earning money.
8. Make a budget and be sure to stick to it
Making a budget and sticking to it can be someone’s idea of financial freedom. Knowing where their money is at all times and being confident in that is freedom. Even if this is not your specific dream, having a budget and following it will set you up for financial success no matter what. There is a popular method called the 50/30/20 method that is simple and effective. 50% of your take-home income each month covers your fixed expenses such as rent, groceries, utilities, minimum debt payments, 30% go towards things you can live without, but don’t want to like food delivery and a Netflix subscription, and the last 20% goes toward financial goals.