The latest studies have shown that more than 80 percent of the people living in the United States alone are in debt. On the other hand, in the UK alone, on average, people owe more than 80,000 dollars and together they owe more than 2 billion dollars. These numbers are just a fraction we owe, and it shows how financially dependent we are. In this 2024 guide, we are going to talk about this topic, and we will give you some tips on how you can become financially free in the modern world.
How to become financially independent?
Source: oldinvestments
This is the first question many of us ask themselves when we are trying to make ends meet. We tend to rely on the help of our friends or relatives, and when we need a larger amount of money, we rush to the bank to take out a loan.
Even though getting a mortgage to pay off for your real estate is not a bad thing, you should know that it should not be your first thought for smaller things. Experts suggest that it is better to wait for a while so you can afford the thing you want, instead of getting a loan for a vacation.
If you want to become financially independent, the first thing you want to do is pay off every debt that you may have. It is said that more than 40 percent of all students have loans, and almost 20 percent of adults are still paying off their student debt. When it comes to statistics, the numbers show that people are owing to more than 2 billion dollars for their studies. These numbers show how difficult it is to balance the money you have to give for education and at the same time, to work just to pay that money off.
The fastest lane to freedom is to pay everything you owe, so you should focus on that first. No matter if we are talking about loans or mortgages, or even money that you’ve borrowed from your friends, if you want to be free, you should not owe anyone. Try to sit down and make a plan, write down how much have you borrowed and what you need to do to pay it off. Know that you should never ignore utility bills or rent money just to pay things off faster. Try to come up with a plan, and follow the structure so you can have a comfortable life, and at the same time, give back everything you’ve borrowed.
If you are looking for a faster way to financial freedom, then you should try and work for yourself. It is said that the climate nowadays is great for startup businesses, and more and more young people are learning how to become independent just by starting up their own company. You can click here if you want to learn how to build a successful business online, and what are the perks of working for yourself.
How to save more?
Source: nbcnews
To become independent, you need to save up enough money every month. Many people believe that they will have to give everything up and that they will have to stop enjoying life if they want to save money. The reality is, there are only a few small things you need to follow, and you won’t even notice the difference in your day to day life.
The advice most people love to hear is that the easiest thing you can do is round sums up. We have money coming and going on our bank account every month, and we don’t usually notice the last few numbers. The reason for this is that that sum is usually so small, that it does not make a difference. Well, we will tell you that it does. For this to work, it is best if you have two separate debit cards or at least two bank accounts. Every night, before you go to bed check how much you have on your account. Check the last two numbers. For example, you may have 1352.26, and what you want to do is transfer the cents you have to a different account. If you save even 50 cents per day, in a year you will have more than 200 dollars in your account. You can also round things up to the last digit, and transfer 2.26 instead of just .26. You won’t notice the difference the next time you go shopping, but when you check out the savings account, you will realize that you have hundreds or even thousands of dollars on the side.
Biggest mistakes
Source: currency
Now let’s talk about the biggest mistakes we make that lead to an even bigger financial dependence. The first thing we do is we buy everything we see. Marketing nowadays is amazing, and we think we need all the things that are shown in the commercials. Well, the reality is, you don’t need it. You don’t need a new bag, you have too many of them. You don’t need a new perfume, you have 3 that are opened at home, and you definitely don’t need a new shirt. Write down the things that are really necessary for you, and you will notice that you’ve been spending so much on things that are just clogging up your space.
We don’t pay our loans back before we take another one, and we always rely on others. If you just take a risk once, you will notice that things pay off. We are stuck with the jobs we don’t like, and we just hope we don’t get fired. The main thing you should do is work on yourself and your skills. Invest in knowledge, and choose to invest your time instead of cold hard cash. Nowadays, there are so many free courses online that will help you learn new things, and when you know more, it is going to be easier for you to find a better job. Don’t be afraid to start your own business, and don’t be afraid to take a risk.
Even though in the modern world we rely on others, it does not mean that it is not possible for us to become financially free. You just have to have a clear goal in your mind, and you need to work for it. Start today, and in a year, you will be amazed at how far you’ve gotten.
