5 Ways to Get Your Financial House in Order and Declare Your Independence

If you’re looking for ways to gain financial independence, you’ll need to get your financial house in order first. What are some practical ways you can do that? I have five suggestions to get you started.

1. Pay off debt or pay down as much as possible

The biggest step to take is to pay off your debt, whether in full or as much as you can. You’ll want to be aggressive here. Once a debt is paid off, roll over your payments into the next debt to pay them off as quickly as possible. Free up your finances so that all your money stays in your own wallet.

2. Build up a 3-6 month savings

After your debt is paid down, take steps to build up three to six-month savings. You want to have enough saved to cover your expenses should you find yourself between jobs, taking a part-time gig, or maybe just taking a break for a month or two. Give yourself the freedom to stop living paycheck to paycheck.

3. Create a budget

Figure out your expenses and create a financial plan to pay them in full and on time. Never assume you’ll remember it all or put everything on autopay so you won’t have to think about it. Keep an eye on every dollar you spend to cut frivolous spending and surprise debits.

4. Get your insurance in order and make sure you have adequate coverage

In the event of an unforeseen life event, get all your various insurance coverages in order. This includes your car insurance, rental insurance, homeowners insurance, health insurance, and life insurance. When these safeguards are put in place, you’ll have much less to worry about when it comes to your own safety or that of your loved ones.

5. Eliminate impulse buying

Find something amazing on Amazon? Leave it in your cart for a week. Come back at a later date and decide with a clearer head whether or not you need it in your life. Try not to buy anything on the spot, but take the time to think about your purchase and decide if it’s a need or simply a nice-to-have.

By giving yourself financial freedom, you give yourself career freedom as well. You’ll be in a much better place to finally start that business, take a dream job that has a lower salary, or take the time to find a career that is a better fit for you. Start the journey, get your financial house in order, and declare your financial independence today.

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