From our friends at Apprisen
Independence is the freedom from control: the control from other people, organizations or other states. Yes, even the freedom from the control of money. Money dictates many aspects of our lives – where we live, what kind of car we drive, where we shop. Often times, without realizing how it happened, the decision of where we spend our money could jeopardize our financial dreams. So, as our nation celebrates its independence, it’s time to declare our financial independence. Here are some ways to get started:
- Set financial goals. You’re never going to get what you want unless you know what it is. Establish short, mid, and long term goals so that you have something to work for. Write them down and refer to them often. If your goal is something you want to do or purchase, like go on a vacation or buy a car, put a picture of it in your wallet or place it where you are consistently looking at it. That will help you in staying focused on reaching that goal.
- Pay more than the minimum payment. Many people are surprised to learn that by paying even a little bit more than the minimum payment on their credit card, how much it could save them in time and interest. Use Apprisen’s online calculator to help you figure out how much you need to add to your payments to pay those cards off quicker.
- Spend less than you earn. Sounds simple, but often very difficult to accomplish. Create a monthly spending plan where you have a listing of all monies going in and out. Then, make a plan to pay yourself first. Have a set amount taken directly from your paycheck and deposited into a savings account using the remaining amount for paying your monthly obligations. Be realistic when determining how much you are going to save so that you are not withdrawing it before the next paycheck. When you receive your next raise, you can increase that amount.
- Know where you stand financially. Add up all your assets and liabilities and find out what your net worth is. Often times, seeing how much debt you have can be an “ah ha” moment that will motivate you to make a plan to pay it off.
- Stop trying to keep up with the Jones. Sure, you would like to have a new car every three years and go on exotic yearly vacations like it seems everyone else doing, but at what cost? Savoy consumers know how to set goals and work towards them, knowing the greatest reward is financial security.
- Educate your children about money. It is natural for a child to have many wants, but by teaching them at an early age that sometimes you have to wait to get what they want, is a valuable life lesson. Let children have control over their money and decide what to spend it on. They will learn to prioritize, set goals and learn financial independence at any early age.