Tips For Becoming Financially Independent (Part 1)
Are you wanting to become financially independent in the future when you retire, but aren’t sure how to be able to achieve the kind of financial independence that you want? Achieving financial independence typically requires years of planning and preparing ahead of time, and the financial decisions you make now will have a major impact on your future. Here are some tips on how to become financially independent:
Pay Off Debt
One of the first steps that anyone who wants to be financially independent should take is paying off any debt that they have first. This includes house loans, car loans, student loans, and so on. The reason is because the longer it takes you to pay off your debt, the more money you will lose in the long-run. Therefore, eliminating any debt that you have should be the first thing on your agenda if you are trying to plan for a financially independent future.
Monitor Your Spending & Start Budgeting
Another tip for becoming financially independent is to start monitoring your spending habits and to start budgeting your money better. Too often people spend money on unnecessary expenses/purchases when they could be saving that money or putting that money towards something that will benefit them in the future. That’s why it’s important to make yourself aware of your spending habits and to start budgeting your money better so that you can save more in the long-run.
Consider Downsizing/Reducing Your Cost Living
Lastly, one of the best ways to save more money and to ensure your future financial independence is to downsize and/or to reduce your cost of living. If you’re in a position where making more money isn’t possible, then you should consider trying to cut down on your monthly living expenses instead. Downsizing can allow you to save significantly more money, since most people’s biggest expenses are their living expenses. Or, you could consider moving/relocating to a place where the cost of living isn’t as high so that you can focus on saving for your future instead of paying higher-than-necessary living expenses.
To learn more about our financial planning services, don’t hesitate to contact Michael Rebischke, your local financial planner near Bloomington MN, today.
I'm Michael Rebischke, and as a wealth advisor, my job is to help you manage your financial affairs, and put a plan in place so you can focus on enjoying the life you want to life. As life continues to evolve, the impact of every financial decision is greater than ever. I work together with my clients, providing them with easy-to-understand recommendations, and helping them implement them every step of the way.