4 Ways to Declare Financial Independence
Millions of Americans will don their red, white, and blue t-shirts, fire up the grill, and cover themselves in bug spray for this year’s Independence Day weekend. But as you’re celebrating our country’s freedom and staring up at the fireworks, you could also be thinking of ways to declare your own independence: financial freedom.
Whether you’re ready to fly from the nest of your parents’ house, or maybe your goal is to pay off debt, here are some steps you can take toward your own financial independence.
Put savings first
If possible, have your employer automatically deduct an amount from your paycheck and deposit it directly into a savings or investment account to prepare for the future. The old adage, “out of sight, out of mind” really works well in this case. You won’t be tempted to spend money you can’t see.
Commit to high-interest debt
Borrowing money at a high-interest rate is one of the biggest financial burdens. Free yourself by committing as much as possible to your debt with the highest interest rate. Continue to be careful about borrowing money. Not owing anyone money is the ultimate form of financial freedom. Learn more about managing your debt with some of our helpful debt blog posts.
Avoid consumer debt
If you’re fresh into the real world after graduating college, don’t be tempted by the credit card applications hitting your mailbox or email. If they sound too good to be true, that’s probably the case. Understand the pros and cons of credit cards. If you use them, pay off your balance in full every month. If you can’t pay for something with cash, you shouldn’t charge it either.
Save for retirement
You’re probably thinking, “Retirement? No way! That’s so far away.” But the reality is it’s never too early to start saving for your future. You’re not going to retire for many years, but the time to start saving is now. Don’t know where to start? Check out some of our retirement resources here.
So while you’re munching on potato salad and celebrating the freedom of our country, you could also be rejoicing in your own financial emancipation. A little strategic effort goes a long way. Follow these tips to observe your own independence from wallet worries!
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