6 Tips For Achieving Financial Freedom
Most people desire financial freedom: the ability to sustain the lifestyle they want for themselves and their family without the pressures of crushing debt and a limited income. Most people also want the ability to retire with a nest egg sufficient to maintain their lifestyle until they die. This should be possible regardless of the career path a person has chosen, however, unfortunately, many people fall short of financial freedom due to overspending. When disaster strikes, the holes in these people’s financial net become all-too evident. We have prepared a list of the following 6 tips for achieving financial freedom; to help you on your path to becoming financially secure.
Make A Monthly Budget And Set Goals
A monthly budget should include all the unavoidable expenses you are required to pay: living costs, utilities, groceries and clothing. The rest of your income should be put into a savings account or investment. It helps to set long-term saving goals and to evaluate your budget regularly in order to make sure you are meeting your savings commitment milestones.
Pay Off Credit Cards In Full
Credit cards are essentially toxic to a well-thought-out, long-term savings plan. Pay off your credit cards in full each month, then chop them up. Living ahead of your means is no joke when late repayments see exorbitant fees being charged for the luxury of spending above your salary.
Start Investing Now
Stock market crashes make people wary of investing through this channel. However, historically, there has been no better way to grow your money. Compound interest alone will grow your money exponentially, however, you need a long time to achieve significant growth. Open an online brokerage account, perhaps a managed fund, and make small contributions each week or each month. In time you will have a serious nest egg which you can use to fund additional investments, like property.
Stay Educated On Financial Matters
Keeping up to date with changes in Australian legislation can be handy at tax time when it comes time to claim your tax refund and any deductions you are eligible for. By knowing what expenses you can deduct at tax time, you maximise your return and any potential savings available via your refund.
Live Below Your Means
Mastering a frugal lifestyle means developing a mindset focused on living a good life with less and it’s easier than you think. This isn’t a challenge to adopt a minimalist lifestyle. It simply means learning to distinguish between the things you need and the things you want and then making small adjustments that drive big gains for your financial health.
Get A Financial Advisor
After you have amassed a hoard of wealth, be it liquid assets or fixed assets, it’s worth getting a financial advisor to ensure you remain on the right track. Contact APM Global for all enquiries regarding property acquisition or sales in Melbourne. We work hard to ensure you receive the best financial outcome no matter if you are buying or selling. We take a consultative approach enhanced with a combined 100 years of experience when it comes to managing your expectations in the property market. Call us today.