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6 Proven Ways to Achieve Financial Freedom

6 Proven Ways to Achieve Financial Freedom

Author: Benjamin Lee

Debt levels in America are reaching worrying levels. At this rate, a large percentage of Americans will likely remain trapped in debt.

However, there is hope on the horizon. With prudent financial planning and self-discipline, it’s possible to achieve financial independence.

Here are 6 proven tips to help you slash debt and improve your financial standing.

  1. Charge only what you can afford

One of the simplest ways to beat credit card debt to avoid it. When you’re out and about, make sure that you only swipe what you can afford.

Better yet, pay for all purchases in cash and keep the credit card in the bag. On the long-term, you’ll be able to curb impulsive purchases and credit card debt.

  1.  Trim your expenses

Just like fat, non-essential expenses are a burden on you. Start trimming excess expenses by performing a self-audit. Tracking your daily expenses provides you with greater visibility on your cash outflows. Thus, helping you keep better manage your expense.

Brewing your own coffee daily instead of buying an overpriced drink, is sure to help you cut costs. It may be far from glamorous, but the amount of money you’ll save will surprise you.

  1. Pay off your credit cards on time

Most credit card holders make the mistake of underestimating their credit card debt. With the extortionate interest rates charged by banks, an unpaid card balance will quickly grow out of control.

This is why it’s especially important that pay above the minimum required payment. Stretching out your credit card debt increases the amount of interest owed to the bank. Instead, focus on paying off your credit card debt every month. This builds up your credit history while ensuring that you never have any outstanding debt.

  1. Make use of balance transfers

Credit card balance transfers allow you to transfer existing debt to a new card. While this may seem odd, some banks offer zero or lower interest rates on a new card. Hence, this allows you to pay off your existing debt without having to worry about interest.

Usually, the 0% period lasts from 6 months to 1 year. If you have an excellent credit history, you may even be able to negotiate for a longer grace period.

Instead of paying off interest to the bank, make use of balance transfers to reduce your debt expenditure.

  1. Start force saving

Force saving is an extremely effective method of putting aside money. A part of your salary is automatically deducted and credited into a savings account.

The cash in this savings account remains inside the account for a a set period of time and can’t be withdrawn.

Alongside this, forced saving accounts pay a fixed interest which allows you to develop a passive income stream as you save.

  1. Seek out alternative sources of income

To achieve financial freedom, it’s important that you cultivate several income streams. Besides growing your income, secondary income streams help reduce your risk exposure.

For example, should lose your day job, a secondary source of income will help keep you afloat.

Thanks to the internet, it’s become easier than ever to develop extra income streams. From copywriting and design to translation work, the possibilities are limitless. The flexible nature of freelancing allows anybody with a PC and an internet connection to earn money.

For the more adventurous, you can even try putting bets on horse racing. With a bit of skill, keeping up with free horse racing updates, you’ll be able to grow your initial investment. When punting, take care to not over-commit, lest you lose everything.

The road to financial freedom long but not impossible. With determination and discipline, you too can be financially free.

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