How to Become Financially Free by Yearend
How to Become
Financially Free by Yearend
Becoming financially free by the end of the year
is possible if you take control of your money and life style and stick to your
intention as the highest priority. Even if you are in debt right now, with some
planning, you can end the year with savings in the bank if you take time to do
some financial planning now and make goals to help you achieve your objective.
1. Begin by taking
a personal inventory about the true state of your financial affairs as they
look today. Create two columns and in one column list the money saved and
assets you have available and your regular salary or other source of income The
goal of financial planning is to be able to pay the bills in the second column
from what is available in the first column and still save money
2. The second step
is to create a weekly budget. Base your budget estimate on your weekly income.
┬╖ Begin by
estimating your weekly income before you pay bills or do anything else with
your money.
┬╖ Put a minimum
of 10- 20% of your weekly income before bills into a savings account
┬╖ Then work out how much you expect to need to
pay in bills this month. Include all debts as well as utility and other bills
you may have or expect to receive. Ensure you budget to pay more than the minimum
amount on your debts. If you only pay the minimum required you will not achieve
your goal of being debt free.
┬╖ Divide that
amount by four and this will give you a weekly amount you will need to subtract
from your income to cover your end of month bills.
┬╖ Allocate any
remaining money for personal use, to increase bill repayments or to increase
savings.
3. The third step
is to look for alternative income sources if your expenditures (not including
personal use money) are greater than your income. This may mean taking a second
job or looking for a higher paying job. Short-term pain will equal long-term
gain.
4. Stop using any
credit cards and never use them to pay for food or clothes or utility bills.
Repay them as soon as possible to reduce interest on repayments.
By focusing on these steps, your financial freedom
by this yearтАЩs end is very achievable.