There is a lot of focus surrounding finances right now. It might be because there have been many circumstances surrounding people and their potential earnings due to working from home, losing their jobs because of the pandemic, or even just wanting to feel more secure with their finances. A lot can change in twelve months, and having the goal to make that your reality experience financial freedom could be the way forward. So what can you do to make that possible? Here are some suggestions.
1. Pay off any debts
One of the first things you should consider would be to pay off any debts that you have outstanding. This might be overdraft facilities, loans, or credit cards. For things like overdrafts and credit cards, you control what you pay. As long as the minimum is met, then it is fine. But, this isn’t going to be paying off those debts anytime soon. So if you want financial freedom, it is time to make that a priority. Start paying off as much as possible and focus on the debt costing you the most money in interest. The more you do that, the better position you will be in.
2. Focus on your budget
Another thing to do would be to focus on your budget. What do you spend, and do you know exactly how much you spend each week and month? Many people are good at having a list of their outgoings in terms of bills, but a budget for you to feel more in tune with your finances needs to be more than that. Grab your bank statements and look at your weekly card transactions. Working out what you spend and what will help you develop a realistic budget that you can stick to to save more money.
3. Develop new habits
If you are interested in saving money, then you might want to think about changing some of your habits to help that happen. When it comes to grocery shopping, you could start meal planning or look at changing where you shop. Even switching to store own products can save a fortune compared to brand names. You could also try and save money by using voucher codes to reduce your spending on things like clothes. Shopping for pre-loved items instead of new ones can also save you a lot in the long run.
4. Start a side hustle or your own business
Finally, why not consider a side hustle or turn something you are passionate about into a business. There are plenty of side hustles, including filling out surveys online or even performing mystery shops. Or, starting your own business could be lucrative. It could be that you have a blog or social media that you could monetize, or maybe you could look at turning a hobby into a business you do from home. There are many ways this could give you great potential, and who knows where you will be in twelve months.
Let’s hope these tips help you experience financial freedom in the next twelve months.