Being financially independent is a blessing both later in life and in the earlier years. Financial independence means that one can meet his needs and wants without taking financial help from his parents, guardians, or loans. But, being financially independent is not easy while growing up because one wants to spend on luxuries such as traveling, shopping, dining, gadgets, and more. But, some changes in lifestyle can help one become financially independent in no time! This article explores different ideas that one can change to become financially independent and to support independence over time.
Downsizing the Expenses
Everyone loves spending money, but if the expenses are not controlled then becoming financially independent will stay a wish. Before starting the day, list down all the goods and services that will need spending such as buying groceries, paying utility bills, going for lunch, refilling the car, and others. Once the expenses have been listed, remove at least one expense from the list. Make sure that the expense you exclude is removed forever and not merely delayed. The idea here is not to save yourself from spending today but save yourself from making that unnecessary expense.
Feed the Piggy Bank
As old school as it may sound, piggy banks are one of the greatest ways to save money. At the end of the day, take out your wallet and empty your pockets and feed some money to the piggy bank. Since credit cards and debit cards have become common, people have stopped carrying cash unless necessary. If you have some money left from the last cash withdrawal, give it to the piggy bank. This way the money will either be on the card or in the piggy bank, leaving nothing to spend on unnecessary items. Also, stop thinking about how much money is in the piggy bank. The more you think, the more you would want to take the money out. Instead, save it for a trip later.
Record Your Spending
Tracking the expenses and spending of the month gives an idea of where the money is going. This will help in understanding the patterns of spending. For example, managing a spreadsheet will help an individual know where most of the money is going, which expenses could be avoided, which investments proved to be profitable, which expenses are essential and cannot be avoided, and more. Also, it will help in tracking the money as sometimes people don’t know where the money was going. Managing a spreadsheet will also help the individual make payments on time, avoiding penalties for late payments. Applications have now made it easier to record the day’s expenses and warn you when the budget is getting out of control!
Invest the Money
The way to keep the money rolling is to invest it in profitable assets. An individual may invest his money in real estate, stocks, shares, and other financial assets. These investments help manage the expenses when the usual source of earning money is not working. For example, if an employee loses his job, his income stops. But, if he has invested his money, he can sell the asset or use its profits until he finds another job.
Becoming financially independent is difficult, but, with some changes in day-to-day spending, one can achieve it. The key to financial independence is to manage expenses and spend wisely. In the earlier stages of life, you need to spend less and save more, although the urge to spend is strong. Even if some money is used to buy unnecessary luxuries, start fresh! Persistence and patience will get you there!About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.