How to Get on the Path of Financial Freedom: 6 Tips to start saving more and spending less

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If you are like many Americans, you may find that the achievement of your dreams often comes at an expense. Whether your goal is to own a home, become an entrepreneur, or travel the world, you need a sense of financial freedom.  You do not need to have a lot of money to be financially free, you just have to be wise with the money you have.
Here are tips to help get onto the path of financial freedom:

  1. Establish a monthly budget of all of your expenses and income from all sources. When you are calculating your expenses, be sure to include everything, not just your monthly bills. This will give you the most realistic understanding of your financial situation.
  2. Track all spending for at least a month. This will give you the ability to see exactly where your money is going and if there are changes you can make in your spending habits so you can be closer to achieving your goals.
  3. Prioritize! Be sure to separate your individual needs from your wants. Before spending money on a “want” consider if it will bring you closer or further away from your financial goal.
  4. Negotiate your bills. Take a look at your phone plan. Are you consistently using all your data? What about your cable bill? Take a look at your monthly bills to see where you will be able to make some cutbacks.  Call the companies and ask if they can reduce your rate.  If you don’t ask the answer will always be ‘No!.’ Any money you can trim from your budget should go directly to savings.
  5. Automate your savings. Make sure you ‘pay yourself first’ by setting up an automatic transfer of your excess income to go directly to your savings account.
  6. Set money aside monthly for an emergency savings. This will help in the event of any unexpected expenses or changes in your income. Emergency savings will help you avoid accumulating debt, which will take you further away from reaching your goals. If you are already in debt, connect with one of our credit counselors now to help you find the best solution to manage your debt.
  7. Stay focused! For many of us, budgeting can be challenging; but if you stick with it, you will reap the rewards.

Financial freedom does come true and it could happen to you! Once you have a sense of financial freedom, your dreams can become a reality.  Begin with these steps and if you need any additional assistance, Navicore Solutions is here to help! Just call and connect with a counselor for budget counseling, credit counseling, housing counseling or student loan counseling.
About the Author: Lauren Lovett is a Certified Credit Counselor and Grant Writer for Navicore Solutions.