5 Ways to Achieve Financial Freedom

I'm always looking for more financial freedom, I think most people in the world are, but since I'm not nearly an expert on the topic Wednesday of my vacation week brings a finance article by James Daniels, a freelance writer, business enthusiast, a bit of a tech buff, and an overall geek. He is also an avid reader, who can while away hours reading and knowing about the latest gadgets and tech, whilst offering views and opinions on these topics.

Financial freedom is something that most people strive for, but it can be one of the most difficult things to attain. It also seems like the younger you are, the harder it is to be financially free because you are most likely to have larger mortgages, debts and fledgling careers that may not yet be in a higher wage bracket. Not only that but things happen in life that always seems to be costing us money! So is financial freedom possible? It is, but it helps to see it as a journey rather than something that can be achieved quickly. With a little work and careful planning, there are some ways in which we can all progress towards our financial freedom.

1. Set a Realistic Budget

To be in control of your finances, you need to have a clear overview of your monthly income and outgoings. When you understand this, it allows you to set a budget for spending that is within your means. Doing so helps you to get through each month without creating a negative balance or getting further into debt.

2. Shop for Student Finances

If you are an undergraduate student or above, you are likely to need financial help so you can complete your degree. This is where it pays to shop around for the lowest interest rates and compare the typical loans offered compared to private student loan options.

You might also consider student loan refinance, where you take out a new loan with a more favorable rate to pay off your old one and help you continue your studies. CommonBond student loans refinance is one example of a way to get a better deal from a student loan.

3. Cut Up Credit Cards

While having a credit card might seem like a short-term fix, in the long term using one can get you deeper into debt. If you have a credit card, cut it up, so you are unable to use it, and use your budget for your monthly expenses instead.

4. Save an Emergency Fund

If you can save a few hundred dollars, keep it aside in case you have any emergency expenses to contend with. It might mean getting your car fixed, or replacing an appliance in your home. Having an emergency fund set aside will allow you to pay for things without using a credit card, keeping you debt free.

5. Pay Off Debts

If you have any debts, pay off as much as you can, whenever you are able. It is also worth setting a portion of your wages aside each month to help eliminate any debts. Once you clear any debts you have, it becomes much easier to save money and become freer financially.

Financial freedom is possible, as long as you are willing to work at it. Be open to possibilities for developing your career or changing jobs that could bring in more income, as well as looking at ways to pay off debts and prevent yourself from furthering your debts. With consistent effort, you’ll soon begin to see a difference in your finances.

Lifestyle Changes You Can Make to Improve Your Personal Finances

Happy Wednesday friends - today I have a post for you from Jacob who runs a personal finance/lifestyle blog called DollarDiligence.com. He actually paid down $25,000 in debt in under 15 months so when he approached me about a collaboration and post exchange, I said absolutely. Then I lost track of it and of course have not written a post for him to share over there. One day at a time, am I right? Anyway I figured you guys would like this because the info is good and it's not in my usual repertoire. Be sure to check out his blog and follow him on Twitter.

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What many people don’t realize is that their lifestyle contributes to their debt. You may think that you’re cutting expenses as much as you can, but you are going to find out within the next few minutes how you can make additional cuts and live even better.

If you’re buried under debt from all sources, you’re not alone. Starting with college graduates, there are over 40 million people who struggle with student debt. Opening it up to all of America, the average household credit card debt is around $6,000. Finally, the average mortgage debt is around $300,000. Yikes!

The fact is that you don’t have to be buried underneath tons of debt. You don’t have to be looking at disconnect notices or wondering how you are going to pay your living expenses. None of this has to happen to you. If it is happening, you can stop it. You just have to make some changes.

Start Downsizing Right Now

It’s time to start getting rid of stuff you don’t need and things that are costing you money. You can capitalize on the nice things you have that you have no use for by selling them on Facebook groups, eBay, or Craigslist or simply have a yard sale.

I’m all about not keeping unnecessary things around. In fact, I won’t buy new clothes unless I absolutely need them. I remind myself daily that the goal is to retire by the time I’m 35. I really want that because I have seen too many people work their lives away and have little to show for it by the time they reach retirement age.

Once you eliminate the clutter, you can take a look at what you really have. These are the things that you need, so make sure you use them. Instead of going to the store and buying something you already have because you need it and can’t find it, organize everything so you know what it is.

It’s amazing how many people clear the clutter and find that they have four or five of something. In that case, put those online sales platforms to use so you can get some of your money back on them.

Eat Well and Cheap

Food is another area you have to watch. I had to start watching how much money I spent on food. I knew nothing about couponing or discount grocery stores until I started exploring ways I could buy groceries cheaper without starving myself.

The internet and the Sunday newspaper are great sources for coupons. Look at the sales papers for individual stores to find the best deals. You also need to review coupon policies so you aren’t surprised at the checkout. 

Some communities have couponing classes at the local library or another location so you can learn how to stretch your dollar as much as possible. Do a little Facebook search to see if there are any events scheduled in your area.

Also, don’t forget about the discount grocery stores, like Aldi, where you can get your groceries at 50 percent to one-third of the cost you would pay elsewhere. There are few name brands in these stores, but they tend to carry healthier options so that you can eat well without paying a fortune. Due to the lack of name brands, there may be no coupons. You can combine coupon shopping at other stores with discount grocery shopping and still come out better in the end without putting your nutrition at risk.

It's also good to go homemade with your meals. It can be tempting to drive through a fast food restaurant because it’s convenient, but your wallet and your cholesterol pay the consequences.

Hygiene without the Cost

Hygiene products tend to cost. If you are the type that has four bottles of half-used lotion sitting on a shelf, commit yourself to using those before buying more.

As with grocery shopping, health and beauty products can be purchased using coupons. You can also explore products that are very good for their price. Just because it is cheap doesn’t mean it’s bad. You have to look a little harder to find the shelf tags for these cheaper products, but they’re there.

Pay Cash for Everything

Of course, paying cash for everything has some major advantages. First, you already have the money. You won’t owe anyone for spending that money. When using credit, you are spending someone else’s cash and you have to pay them back with interest. The interest is how they make a profit.

Therefore, paying cash for everything should keep you from overusing your card. You won’t have to pay any interest which is especially helpful if you tend to overdo it. Everything you purchase is free and clear. Just make sure you don’t overdo it with cash either. The whole point is to save money.

Budget Strictly and Save

Lastly, you need to create a budget that you stick to and save money every chance you get. This is something you have probably heard a million times, but it works. Budgeting can be difficult to get used to at first, but you will love the result.

Jacob recently entered the personal finance blog world with the advent of Dollar Diligence. He’s new, so if you want a fresh voice, feel free to read a few articles. Twitter: @DollarDiligence

Personal Finance Tips to Save Money Today for Summer Travel Ahead

Happy Friday friends! Lauren Davidson, a senior at a prestigious university here in Philadelphia, contacted me about sharing an article to build her writing portfolio. I am not one to give space for free, but sometimes the Grinch's heart grows three sizes in one day, and it did this time, so here it is. 

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With the economy finally picking up steam, many families are looking ahead to their first real family vacation in years, or ever. As the summer season approaches and plans are finalized, now is the time to get your finances in order so you can enjoy the time away without worrying about those post-vacation blues. While there are a number of things you can be doing to get financially prepared for a great vacation, here are three essential personal finance tips.

Create a Budget and Saving Plan

Trying to plan and execute a vacation without a full scale budget and savings plan is certain to lead to disaster – or, at least disappointment. Any financial endeavor worth pursuing must have a plan in place if you want to realize your vision. A successful family vacation requires a plan consisting of three steps:

Establish a goal. Any type of vacation plan is going to have a cost. You need to determine what that cost is and whether it is reasonable in light of your capacity to save for it. That means creating a detailed vacation spending plan, complete with time line and expenses, leaving room for a splurge or two and the unexpected. The last thing you want is to have to turn to your credit cards to cover your expenses.

Establish a savings goal. Based on the amount need to fund your complete vacation, you need to establish a goal for how much money you will need to have in your vacation fund. If your savings time frame is less than a year, you should expect to earn zero interest on your savings. So, if your vacation expenses will run $3,000, you need to calculate how much needs to be saved weekly between now and the start of your vacation. If your vacation is planned for 25 weeks out, you will need to save $120 a week.

Find the savings in your household budget. Saving $120 a week, or around $550 a month can be a tall order for some families. That is why you need a household budget. If the goal is important enough, you should be able to reprioritize spending for a short period of time. Comb through every single expense in your budget – both essential and non-essential expenses – to see what can be redirected to savings. You will be surprised with what you can find. The important thing is to then make your savings contribution the first expenditure in your budget.

Budgeting and saving, especially for a short-term goal, can be difficult to manage for some families, which is why it is recommended that you employ technology to help you. There are two apps that can be particularly helpful. Mint from Inuit and You Need a Budget are personal finance apps available on iOS and Android that let you track and manage your spending and saving in real time. They can also be instrumental in helping you to pay down debt, which is the next essential tip to follow.

Pay Down or Refinance Debt

If you have a large amount of debt, you should consider whether now is a good time to take a family vacation. Paying off high interest debt should be a top priority for any family. However, if your debt is manageable and, more importantly, there is a chance to pay it off or, at the very least, refinance it to lower your monthly expenses, now would be a good time to put that strategy into action. Here are some steps to take with your debt right now.

Credit card debt: See if you can find a 0% introductory rate credit card to transfer any high interest credit card debt. Ideally, you can find a card with at least a 12 month promotional period.

Student debt: While it’s not possible to pay down student debt in a short period of time, you may have available some options for lower its cost, either through student loan consolidation or refinancing.

Mortgage refinancing: With the likelihood of higher mortgage rates in the near future, this may be your last chance to lock in low rates. If you have been considering it, doing so now could lower your monthly expenses to allow for more savings.

Make it a Family Endeavor

By making it a family endeavor, one in which everyone contributes by finding new ways to save and make money, the vacation will turn out to be a rewarding experience and much more enjoyable for all. Enlist the kids to organize a yard sale, or help with selling items on eBay or Craigslist. Putting the kids in charge of tracking the savings goal will keep them involved and active in holding everyone accountable. 

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What do you do to save money for travel?