Skip to navigation Skip to content
Javacertificate.net
  • Home
  • Categories
    • Biohazard Tips
    • Business Solutions
    • Car Care Tips
    • Car Rental Tips
    • Cooling & Heating Solutions
    • Elderly Care & Support
    • Home Care Tips
    • Mortgage Loan Tips
    • Photography Tips
    • SEO & Internet Marketing
    • Temporary Warehouse Tips
    • Texas Basic Law & Taxes
  • About
  • Contact
  • Privacy Policy
Main Navigation

Tag: managing debt

5 Things Keeping You From a Life of Financial Independence

Couple worried about paying bills

Financial independence can mean different things to everyone. A 2013 survey from Capital One 360 found that 44 percent of American adults feel that financial independence means not having any debt, 26 percent said it means having an emergency savings fund, and 10 percent link financial independence with being able to retire early.

I define financial independence as the time in life when my assets produce enough income to cover a comfortable lifestyle. At that point, working a day job will be optional.

But what about the rest of America? How would you define financial independence? If freedom from debt is what you’re seeking, here are five areas that could be holding you back.

1. Not having clear, financial goals

If you’re not planning for financial independence, chances are you won’t reach it. The future is full of unknowns, but having an idea of when you’d like to achieve financial freedom should be your first step.

Do you want to retire before you turn 65? Do you want to travel the world with your spouse once you reach early retirement? Both goals will require a significant amount of cash stashed away, so it’s important to start saving ASAP to make those dreams come true. (See also: 15 Secrets of People Who Retire Early)

2. Not saving enough

It’s important to identify how much you’re currently saving, and how much you need to save in order to retire when you want to, or reach another major financial goal. Using a calculator like Networthify can help you play with various money-saving scenarios and make realistic projections about retirement.

Another way to make saving money easier is to automate it. Setting up an automatic weekly or monthly transfer from your checking account into your savings account will take the extra task off your already full plate. Even if it’s as little as $5 a week, it’s enough to start building that nest egg. (See also: 5 MicroSaving Tools to Help You Start Saving Now)

3. Not paying off consumer debt

If you’re carrying a credit card balance each month, financing cars, or just paying the minimum on your student loans, compound interest is working against you. Creating an aggressive plan to pay off debt quickly should be a number one priority for anyone who is serious about achieving financial independence. Otherwise, your money is working for your creditors, not you.

If you prefer to tackle credit card debt first, there are several debt management methods you can try, including the Debt Snowball Method and the Debt Avalanche Method. The Debt Snowball Method has you paying off the card with the smallest balance first, working your way up to the card with the largest balance. The Debt Avalanche Method is similar, but here you would pay more than the monthly minimum on the card with the highest interest rate first, working towards paying off the card with the lowest interest rate. Both are highly effective methods, and choosing one really just depends on your preference.

4. Giving into lifestyle creep

A high income does not automatically make you wealthy. As you move up in your career, the temptation to upgrade your lifestyle to match your income will be ever-present. After all, you work hard, so why not reward yourself with the latest gadgets and toys?

However, if you continue to spend and live modestly, you can put more money away for travel or retirement with every pay raise you earn. Financial freedom will be just around the corner if you resist that temptation to upgrade your home, car, and electronics to match your income bracket. (See also: 9 Ways to Reverse Lifestyle Creep)

5. Being driven by FOMO

Fear Of Missing Out, aka FOMO, is the modern version of keeping up with the Joneses. Except now you have access to the Joneses’ social media platforms, and they go on all kinds of fun adventures. Social media is a great tool for keeping in touch, but it can also make you want to spend all your money on lavish vacations, clothes, spa treatments, and other extravagent things. Resist that urge. And block the Joneses on social media if needed. (See also: Are You Letting FOMO Ruin Your Finances?)

Like this article? Pin it!

How would you define financial independence? If freedom from debt is what you're seeking, here are five areas that could be holding you back. | #budgeting #debt #savingmoney

This article is from Toni Husbands of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:
  • 5 Money Moves to Make Before You Turn 40
  • The 10 Commandments of Reaching Financial Freedom
  • 16 Small Steps You Can Take Now to Improve Your Finances
  • The Pros and Cons of Paying Off Your Debt Early
  • How a Credit Card Can Actually Help You Get Out of Debt


January 18, 2021By Paul Reid Budgeting, Financial Freedom, Frugal Living Budgeting, budgeting tips, car, Career, Checking Account, Compound Interest, Credit, credit card, Credit Card Debt, Debt, Debt Management, Finance, financial freedom, Financial Independence, Financial Wize, FinancialWize, financing, Home, Life, Lifestyle, Loans, managing debt, money, Pay Off Debt, Paying Off Debt, Personal Finance, Planning, rate, Retirement, Saving, saving money, savings, Savings Account, Student Loans, Travel
Categories
  • Account Management
  • Apartment Communities
  • Apartment Decorating
  • Apartment Hunting
  • Auto
  • Auto Insurance
  • Auto Loans
  • Bank Accounts
  • Banking
  • Biohazard Tips
  • Breaking News
  • Budgeting
  • Building Credit
  • Business
  • Business Solutions
  • Car Care Tips
  • Car Insurance
  • Car Rental Tips
  • Careers
  • Cash Back
  • Celebrity Homes
  • Checking Account
  • College
  • Cooling & Heating Solutions
  • Credit 101
  • Credit Card Guide
  • Credit Card News
  • Credit Cards
  • Credit Repair
  • Debt
  • DIY
  • Early Career
  • Elderly Care & Support
  • Estate Planning
  • Extra Income
  • Family Finance
  • Financial Advisor
  • Financial Freedom
  • Financial Planning
  • Financing A Home
  • Find An Apartment
  • Finishing Your Degree
  • First Time Home Buyers
  • Fix And Flip
  • Flood Insurance
  • Food Budgets
  • Frugal Living
  • Growing Wealth
  • Health Insurance
  • Home
  • Home Buying
  • Home Buying Tips
  • Home Care Tips
  • Home Decor
  • Home Design
  • Home Improvement
  • Home Ownership
  • Home Repair
  • Identity Theft
  • Insurance
  • Investing
  • Investment Properties
  • Life Insurance
  • Loans
  • Luxury Homes
  • Money
  • Money Etiquette
  • Money Management
  • Mortgage
  • Mortgage Loan Tips
  • Mortgage News
  • Mortgage Rates
  • Mortgage Tips
  • Paying Off Debts
  • Personal Finance
  • Personal Loans
  • Photography Tips
  • Real Estate
  • Refinance
  • Renting
  • Retirement
  • Savings Account
  • Selling A House
  • SEO & Internet Marketing
  • Side Gigs
  • Small Business
  • Spending Money Wisely
  • Starting A Family
  • Student Finances
  • Student Loans
  • Temporary Warehouse Tips
  • Texas Basic Law & Taxes
  • Travel
  • Unemployment
  • Work From Home
Recent Posts
  • What Is a Fiduciary Deposit Account?
  • Merrick Bank Double Your Line™ Secured Visa®
  • 10 Ways to Master a Virtual Career Fair (+ Questions to Ask)
  • 11 Coffee Hacks for Flavor, Stains, and More
  • The Affordable Housing Option That Can Help You Pay Off Debt Faster!

Home

About

Contact

Privacy Policy

Site Map

javacertificate.net
Home | Contact | Site Map
2019 Copyright. javacertificate.net
© Javacertificate.net 2022 • ThemeCountry Powered by WordPress