Worried about money? Well you can kiss that worry goodbye! Read these few tips on how to live life more free from finances.
It is not uncommon nowadays to meet people in their 20s or 30 who are planning on early retirement. That is strange given that older generations could not think of that before they were 60. Well, people are discovering the world and are realizing that the more freedom you have, the better prepared you will be at traveling the world. People all over the world are also realizing that raising kids well is solely on their shoulders and they would rather influence them than have the world impose values on them. You do not have to be rich to achieve financial independence though; here are some tips to put you on the right track.
Do Away With The Budget
We have been taught over and over again that drawing a budget every time before you start spending money is the right thing to do. There is another way to look at a budget that you probably have never heard about; break down your budget into expense categories e.g. transport and housing. How can you bring down the costs of commuting and housing? The best way to get an answer to this question is to think about the return you want on each of these expenses. You can consider buying a cheaper car or moving closer to your workplace to cut on transport costs while buying a house in a low-cost to the medium-cost neighborhood may work to reduce housing costs.
Only Spend On Essentials
If your dream is not to retire way before your peers, can you still achieve financial independence throughout your working life? If you had a terminal health condition, for instance, you would be in need of medical care throughout your life. The cost of health care is one of the weighty aspects that can hit your road to financial freedom. You can make sure that you always have money for hospital visits, prescription drugs and even procedures that are considered essential from time to time. When your fiancés are in order, that means that everything you need can be accommodated- that is financial freedom!
Try The Nomad Life
That may sound primitive but thousands of people around it are embracing it. Geographical Arbitrage is an effective way to cut down on expenses but only applies to those whose work allows them to work from home. Instead of locking yourself up in the house day and night, you could choose to relocate albeit for a while to a different region or part of the world where there are working facilities but the cost of living is low.
Learn To Buy And Hold
Many people definitely want to make money and to make it fast which explains why the stock market is abuzz as people race to sell shares at the slightest gain.
How about you forget about the shares you hold and allow them time to grow in value. Even if you live your life just surviving through the bills, stocks that have been held for 10-30 years are a handsome retirement package.
Respect The Money You Make
People say it all the time but until it appeals to you directly, it would never make sense; money you have earned with your sweat tastes sweet. Especially if this money is all you have to live by, then you will treat it with respect. Actually, you will want to hold on to it longer, buy things that make you proud to have worked the job and give it only to people you are certain will not waste it. Treating money with respect is simple – when you withdraw it from your bank or receive it from your employer, place it neatly in a wallet or purse. From there, you will notice that every time a need to spend money arises, you will consider each note as valuable and it actually is.