Are you looking for tips to gain financial independence? Credit Good has listed the steps for you to organize your personal finances, get out of the special and revolving credit card check , and so you can live more peacefully. Before reading our tips, it is important to know better the concept of financial independence.
Having financial freedom does not mean enriching, but rather becoming the protagonist of your own financial life, getting rid of financial problems that impede your growth.
Next, learn how to have control over finances and achieve your financial independence.
1) Make smart choices to achieve financial independence
When it comes to finance, have you made good choices lately? Well, if you’re spending more than you earn, do not.
And if you rely on the overdraft or credit card (or both) to avoid suffocation, you find yourself in a time of financial imbalance.
But it does not end there. If you have outstanding debts, the situation gets a bit worse. Still, it is possible to catch your breath and get back your financial independence.
Smart choices are more economical choices. This does not mean that you can not enjoy the things you enjoy. Get started today.
2) Remove your debts
Financial problems hamper the achievement of financial independence, because debt not only increases over time, but can also prevent access to credit.
So if you have outstanding debts, it’s no use ignoring them, even if you’re facing a financial crisis, look for alternatives to pay off your overdue bills.
One option is to apply for a personal loan to pay off debts at a single time, with lower interest and installments that do not weigh on your monthly budget. Besides the possibility of saving, you will only need to organize with a single commitment.
3) Get rid of the card’s revolving credit
The interest of the credit card issuer leads the ranking of the country among the credit modalities.
The minimum payment for the credit card bill works as an emergency loan because when you use the card for purchases or payment of bills , the bank or financier is lending money and expects to receive it in its entirety.
Banks and financiers usually offer two solutions for card debt: pay minimum or installment .
But to avoid or avoid high interest rates , look for a cheaper form of credit, such as a personal loan , which has lower interest than the interest rate.
4) Get out of overdraft
Overdraft interest rates are the highest of the credit modalities and only lose interest on the credit card rotary.
The overdraft also works as an emergency loan, which is available in the checking account to be used when the client wants.
It turns out that so much ease can turn into a vicious circle: you use the limit and you can pay when the money falls, but then you run out of balance and you have to trigger the overdraft again.
There is only one way out: pay the overdraft limit without compromising your income. For this, prefer a personal loan .
You can simulate personal loan in the Loan and Finance Loan Simulator and know how much you will pay in each installment. So you organize your pocket!
5) Control expenses
Spending control is critical to achieving your financial independence faster.
To have more peace of mind and achieve your financial goals, you need to spend more than you earn and if the choices are right for your pocket.
To make it easier, write down your income (salary and extras) and expenses (bills and other expenses) in a notebook or expense worksheet .
Make a self-assessment of your spending, and consider rethinking your choices if you notice that you are spending more than you should.
Do not forget to even consider the expenses that seem invisible, like a snack.
6) Reduce expenses
In addition to controlling spending, to have good financial health you need to make more economical choices and reduce expenses.
For example, if you reduce your light bill by $ 5.00 a month, you’ll save $ 60 in 12 months on energy only.
If you go to the market before meals, it becomes harder to resist the temptations on the shelves.
These are attitudes that should be considered to reduce expenses and possible waste.
Make conscious choices to save money and time. Conscious consumption also not only contributes to your pocket, but also to the planet.
7) Keep a security reservation
For financial independence, this may be the most important step for you.
Come on, you’ve settled your debt and you’re paying your bills on time, and now you need to be careful.
Emergency booking is necessary for you to have more peace of mind in the future and not get in debt.
Economics experts recommend that you save at least six times your monthly income, that is, a financial reserve that keeps your accounts current for a period of six months.
8) Make short, medium and long term plans
Plan short (in less than 1 year), medium (up to 5 years) and long term (over 5 years).
To achieve your goals, create financial goals, such as investments, according to your budget.
For example, if you have a desire to buy or change a car in 1 year, how much per month does it need to save money to buy it?
Financial planning is a necessary step for you to achieve your financial independence and transform their dreams into reality.
With well-defined purposes and discipline to reach them, you only have to win.
9) Choose the cheapest credit
You’ve seen, up there, that there are alternatives to credit card and check to have money.
Choosing the cheapest credit, whether for the payment of debts or to fulfill your dreams, is indispensable for your financial independence.
Here at Credit Advisor, you have a better chance of finding the cheapest credit, because we consult all our partners at the same time.