Celebrating America’s freedom on the 4th of July
reminds us that we have a chance to improve on the financial opportunities that
affect our everyday lives. Kick start
your Independence Day festivities this year by conducting a thorough review of
your finances. Keep these tips in mind
so that you can move closer to your own financial freedom.
Don’t spend more than
what you bring in. This may seem obvious, but when you spend more than you
make, you fall into debt and end up paying your credit institutions instead of
yourself. Pay off all your
debts. Use credit cards that pay you in
rewards, cash back rebates, or airline miles.
Pay off the entire credit card balance monthly and do not carry balances
from month to month.
Think outside of the
debt box. There’s an ongoing myth
that debt is just part of life. Some
adults believe that, “Part of being an adult is financing a car and having a
monthly car payment.” This isn’t true at
all.The key to financial success is
having the right attitude. Accepting
debt as part of life is a lender’s way of keeping you in the debt box. Think outside of the debt box and only
purchase things when you have the money to pay for them.
Save your money. Pay yourself before doing anything else with
your paycheck. Have a part of your
paycheck direct deposited into a separate savings account that you can’t access
without plenty of waiting time. Use the
remainder of your paycheck to calculate your spending budget and leave the
separate savings account alone.
Showing off isn’t
about what you bought, it’s what you saved. We all have that neighbor who buys every trendy gadget, accessory, car,
new home addition, or furniture set when it first comes out and loves to claim
bragging rights. Refuse to compete. Buy only what you need.
The Little Things Add
Up. Monthly subscription services
can take a big chunk of your money, especially because they are so easy to
forget to count as expenses when making your budget. Think about it: The streaming music service costs $10, the
gym membership costs $30, the magazine subscriptions cost $15, online video
subscription services cost $10, and you recently racked up $40 in online
gaming. That’s $105 a month! Find out what you can do without, cut it out,
factor these entertainment expenses into your budget, and save yourself some