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Featured: Ideas to Achieve Financial Freedom

Last year, I posted about how I was struggling with financial freedom. Over the year, I have learned that so many people are in my same shoes, which is really unfortunate. Being in debt, struggling to pay bills and save, and not feeling like you can get out of the hole is a terrible feeling, but it is so common. Alex, an ATL based blogger from The Blogger Bungalow, shares some tips on achieving financial freedom and some local Bergen County businesses that can help! Now, before I jump into this post, I want to give you just a small snippet of my backstory. You can find the rest in my full post about my struggles here, but here is just a tiny part from my post:

I never really had someone educate me on what a healthy financial life looks like. Some of you may know what this feels like. You get refund checks in college and live life on $1000. Only to realize the extra 5-10 thousand you were splurging on actually had to be paid back with interest. Or a Discover credit card sounds really good when you’re signing up. Yet you didn’t know after the 12 month 0% APR period that shit jumps to 12%. Try paying down that balance. Or while you’re closet looks amazing with the nicest designer shoes, eating off ramen noodles every night ain’t it. The list can go on and on. So when you finally decide to get your shit together, that first step is the credit check. It’s like a blow to your throat and you can barely find the air to breathe. How the hell did I get here? Well there I was – now I’m trying to get right. One thing I realized on my journey to financial freedom is I am an impulse shopper. Get that from my mama. I can go into target with a list of 5 things that should cost about $50 and be surprised when I walk out with 8 bags and $150 dollars later. If I like it I want it- even if I don’t need it. And the problem with that? When you are trying to get better with your finances, those are the exact purchases you have to refrain from making.

Alex’s tips:

Now, let’s talk about a few ideas that you can take on to achieve financial freedom. Not all of these ideas will be for you – and that’s okay. Financial freedom looks different for every single person, so what works for me, might not work for you, and vise versa.

Figure out where your money is going

Step 1: figure out where your money is going. Before you do anything else, you need to make sure you know 100% where every nickel, dime, and penny goes. Are you spending wisely, or are you wasting money on things that you do not really need? Find an app that will track this for you, or write it all down manually. Keep track of it month by month to really keep watch. As soon as you stop tracking it, it will become easier again for you to spend willy nilly. Figure out where your money is going and then create a plan to use it more wisely, whenever possible.

Cut costs where you can

I know you don’t want to cut out any costs. Who wants to get rid of their TV subscriptions, fun clothing or beauty subscription boxes, or gaming subscriptions? Not me. But, cutting costs is a great step to becoming financially stable. The extra cash that you would have been spending on these things can go directly towards your high-interest debt, or to your savings account. Figuring out how to cut spending is the hard part because you may not realize where you are overspending and it may be hard to break habits. However, there are ways to reduce your outflow so you can devote more money to your goals and less to purchases that don’t improve your life or long-term financial situation. You can make all the budgets you want, but if you don’t stick to them, they’re nothing more than a wishlist. One way to force yourself to live within your means is to switch to spending cash only – at least for a while. Studies show that people tend to spend less when they use cash and if you do not use credit cards, that means that you can’t spend above your means, no matter how much you want to do so. Another easy tip to reduce your spending is to erase your credit cards from your computer. It’s easy to click “buy now” if your cards are saved. Make it a little inconvenient to spend and you will find that you are spending less. 

Start paying off high-interest debt

Poor finances is one of the most common ways to get stressed out and unfortunately, America in general, really struggles with poor finances, typically starting when in college. A lot of kids jump into college, rack up student debt, and have to live off of high-interest credit cards. Of course, there are some instances where some debt is good, but for the most part, high-interest credit card debt is something that you want to try your best to avoid. You do not want to have to live paycheck to paycheck, stressed that you will not be able to put food on your table. That’s why the first step in your game plan should be to pay off all high-interest credit card debt. Honestly, I consider this step to be a first – even before filling up your savings account with your emergency funds. It might be a smart idea to save a bit so that if you do have an unexpected cost come up, you don’t need to put it on the cards that you are working to pay off.

Consider downsizing for a while.

This tip specifically might not be for everyone, but if you are able to downsize your home (at least for a while), this could be a great way to get back on track financially and finally achieve financial freedom for yourself and your family. If you live in a home that has equity built up in it, if you live in a home that is too large for your needs, or if you live in an apartment or a rental home that you are paying way too much for, you might want to consider temporarily downsizing, putting the extra money that you make (or save monthly) towards your debt or savings account. This is a fantastic way to hit your financial goals much faster than you would, had you not downsized. It is the same premise as selling your car and buying a less expensive one that you are not making monthly car payments on, just on a larger scale. Don’t worry, though. When you do move (if that is the case for yourself), do not worry about pinching every single penny. I still recommend finding a nice home that suits your needs, utilizing services such as local movers in Bergen county, and investing in a few quality pieces for your home, if needed. If you do need movers, All in One Moving & Storage Inc. are affordable movers that are local to New Jersey. They were founded in 2005 on the principle that people need to feel that they can fully trust their moving company. They aim to give all of their customers a totally stress-free moving process, without having to spend a fortune. They offer services such as full packing services, fragile-only packing, packing materials, residential moving services, commercial moving, debris removal, and so much more. The best part of all is the fact that they set you up with a personal relocation consultant that can discuss your specific needs, while also helping you stick to your budget. Clear explanations of costs are provided before your move, without any hidden prices or fees. Their PriceLock guarantee protects you during your entire experience and they will always honor the lower price, if your rate comes in under the initial estimate. It truly is perfect for someone looking to achieve financial freedom, while still needing to use the services of a local and experienced mover to help you downsize and move into your new home

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