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Achieving financial dreams

One of the worst feelings is staring at an unexpected expense, wondering where the extra money is going to come from when your budget is already extremely tight. In this scenario, Make Your Dream Come True Day is the last thing from your mind, and it’s likely never a thought when things aren’t so tight. 

Whether you know it or not, financial freedom is a dream worth fighting for. Personal financial freedom is related to the rest of your dreams; traveling, providing for your family, and achieving success in your endeavors – all much more likely when you are up to date on your bills, you have a savings account, and an unexpected car repair bill is easily covered. With that in mind, here are some meaningful mindset tips to help you get there.

Define what financial freedom means to you

For the vast majority of those suffering from depression due to finances, the direct cause is high credit card debt combined with income that isn’t being properly managed. Determining how to get out of high credit card debt isn’t just as simple as making more money, it is a complicated path with many steps. 

Think of financial freedom as your peace of mind – your ability to feel comfortable with money, without spending it wildly on non-essentials. The depression, anxiety, and dread will disappear without notice, but you will gradually mentally improve as you grow. 

Here are some other concepts that might define your financial freedom according to DaveRamsey.com:

  • Freedom to choose a career you love without worrying about money
  • Freedom to take an international trip every year without it straining on your budget
  • Freedom to pay cash for a new ski boat
  • Freedom to respond to the needs of others with outrageous generosity
  • Freedom to retire a whole decade early

Defining what financial freedom means in your personal finances also helps to establish tangible goals. Start with your sources of stress, calculate your budget as it stands, then determine if you can cut costs and supplement your income while using the debt snowball payment method to eliminate your high credit card debt and other issues.

Start living within your means

Seek counseling if you feel like you can’t help yourself with spending money you don’t have. If you are living paycheck to paycheck while paying the minimums on all of your debt, you might be surviving, but you are putting nothing toward retirement. 

It can be difficult to think about your future when you can’t focus beyond your current bills. However, when you have a moment of deeper thought, consider researching an IRA or 401(k) savings account. Additionally, cut costs where you don’t need them, such as extra data on your cellular plan, or premium programming you don’t use.

Setting up automatic deposits and investment apps

In a great piece from US News, they detail how to set up automatic savings payments so the money leaves your account without you even seeing it – a useful tip for those that struggle with over-spending and money management deficiencies. Here is a quote from the write-up: “Many employers will direct-deposit paychecks into multiple accounts, so you can divert a portion of your income to checking, regular savings, and your emergency fund. You can also contribute directly to your 401(k) through a payroll deduction.”

Several apps in 2019 are also equipped to help you invest for pennies on the dollar via round-ups or financial consulting. For example, the Acorns app allows you to invest round-ups on your purchases, both in-store and online while managing your portfolio for you. You won’t even notice the round-up to the nearest dollar, and you can check on how your investments are doing via your dashboard. You can adjust the aggressiveness of your investments and pause at any time.

The Robinhood app also offers to invest without a fee, and many financially savvy investors utilize the platform to their advantage, using spare change to build their portfolios.

We covered other fintech in a previous blog, in case you are interested. 

Finding other ways to generate income

With tax filings due in just three months, it would be wise to read up on how tax deductions and tax credits work. While many middle class, paycheck-to-paycheck tax filers will use online tools these days, it’s important to consider using a tax professional to help you maximize ways to prevent additional taxes, or get rebates on the taxes you have already paid out of your paychecks this year.

In addition to taxes, there is a movement of bucking the 9-to-5, Monday-thru-Friday work week, where skilled professionals are supplementing their income online. Upwork.com is a place where businesses small to large will pay you to handle projects and even long-term work that matches your unique skill set. Consider generating additional income with any free time you have by working online from home.

Lastly, selling unused or unnecessary items in Facebook Marketplace or Craigslist is a great way to keep from applying for a payday loan. Payday loans have high-interest rates, and can easily send the borrower off in a loop of borrowing that will keep the borrower down for years. 

Outside the box: Take care of your health!

On a final note, Investopedia makes an excellent point that the healthier you are, the less likely you will need expensive medical attention. Keeping basic health insurance is always responsible, but paying close attention to your general health is the best way to avoid unexpected medical expenses that might come with a high deductible. Here’s the piece from the Investopedia blog: “Some companies have limited sick days, making it a notable loss of income once those days are used up. Obesity and ailments make insurance premiums skyrocket, and poor health may force earlier retirement with lower monthly income.”

All of these tips require a change in mindset, and we hope that we mentioned something that triggers motivation! 

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If you found our blog looking for financial advice or assistance with credit card debt relief or debt consolidation, call Golden Financial Services today at (866)-376-9846 or info@goldenfs.org. You can check out the rest of our blog here, and do your research on our services here. Let’s talk soon!

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