Basic Financial Freedom Strategies – Breaking free from financial bondage
Breaking forth from bad debt is not an easy task, ever though several agencies will promise to help your clear your debt and help you get a good credit score and report. If you carry credit card balances, debt will be your biggest financial burden. One of the quickest Basic Financial Freedom Strategies is to focus on paying off the credit with the highest interest rates and then squeeze out more cash in settling debts of smaller interest rates. There are several other tips that can help you avoid bad debt and have more financial freedom
Arming yourself with cash. This is another strategy for avoiding and clearing your debt in no time. Holding cash will help you make immediate payments for your living expenses as well as consumables. The more you restrict yourself to spending cash, the lesser the urge to use your credit cards in piling up debts through credit buying. Cash payments will help you become flexible with your spending; the simple logic is that- when your cash runs out, there will be nothing to buy.
First thing to do to get your financial freedom – devise a budget plan for your expenses.
Most people find it difficult to stick to a ideal budget plan however the fact remains that Budgeting is the best money-management plan you can have to escape from financial bondage. Financial experts suggest that at least 20% of one’s income should be saved up annually for the retirement age. Your budget plan should be proportionate to your earnings, You should be able clearly state how much can over all the aspects of your financial obligations,. Otherwise you may have to change your budget on constant basis to accommodate more financial responsibilities. Your mortgage payments, Insurance, and food should not make up to more than 50% of your income.
Build fort for unforeseen circumstances; Job losses and medical problems often result in bankruptcy in most cases, the best possible means of escaping from financial losses and expenses during such crises is to ensure that you have been adequately insured. You can get the best affordable insurance policies with wide coverage from financial and insurance advisor. You need to separate a significant percentage of your monthly income for insurance settlements. Your health insurance policy should be able to cover you when you find yourself disabled as a result of an accident which will prevent you from working and getting a source of income. Building fort for unforeseen circumstances is one of the critical Basic Financial Freedom Strategies– it secures your future when you can’t meet your financial demands.
Personal spending discipline; this is one of the most valuable Basic Financial Freedom Strategies that can help you control yourself with unnecessary spending. It is very much unnecessary to spend money on things you don’t need immediately- Get your basic needs sorted out first and then you can spend money on future necessities when the time comes. It is important to have a self-spending control for the benefit of those who depend on you.