Whoever said money makes the world go round was a very wise individual. No matter how much we try to build our lives around moments and happiness rather than the dollar, we still rely on it to keep ourselves clothed, fed and housed. Because of this, it is not uncommon to struggle with having enough money to do everything you would like to do. It is probably only the top one percent who can do everything they want, whenever they want to do it. This article might not put you on the Forbes World’s Billionaires list, but it will help you achieve enough financial freedom to have everything you need and a little left over at the end of the week.
Consolidate and eliminate
The first thing you’re going to want to do is to roll all your debt into one payment and then get rid of it as quickly as possible. Having multiple repayments demanding your attention can be stressful, overwhelming and incur high interest payments. It’s always important to do your research and be confident in what type of plan will best suit your circumstances but a solution such as a step up loan can be quite helpful in many cases. Loans of this type generally carry no interest, have far more favourable repayment terms than credit card debt, and are free from hidden fees. Because of this, they are a viable alternative for debt consolidation.
Build it up.
Once you’ve gotten rid of your debt, it’s time to start seriously looking at your savings. You may think that they’re something only boring or rich people have, but there are ways to save, on a relatively modest income, while still having a life.
For example, deciding to save any change that is under $5 in a glass jar is an achievable goal, simple to keep track of, and can be turned into a game for you and your family.
Bust the budget blues
In many circles, the term “budget” can be as offensive as a 6 am start on a Saturday, but it’s essential to have one if you want to rule your finances rather than having them rule you. Make a list of all of your income, subtract recurring expenses and household costs and work with what’s left over. You’ll ideally want ten percent for savings, but if this is unrealistic, pick a smaller goal that you know that you can achieve.
Once you have allocated money for the necessities and a savings fund, label the leftover funds as spending money. Having some flexibility will avoid you feeling confined and help you stick to your budget in the long term. While it may not always seem possible, you should strive to have at least a little money in your budget to use purely for pleasure. Even if this is only $5 to buy a new book or a bit extra on top of the grocery spend for chocolate, you will find having a “fun allowance” will make it far easier to stick to your budget, grow your savings and reach your financial goals.
Money isn’t the be all and end all, but it certainly helps with the rest. Being on top of your finances should be something everyone aspires to if they haven’t already achieved it and the tips outlined above will help you do that. Don’t let setbacks ruin your plan, stick to your budget as well as you can and soon you’ll see financial freedom as an achievable goal rather than a distant ideal.