Independence Day celebrates the monumental task America took on to become an independent nation. We’ll likely honor those freedoms we gained by spending time with friends and family, maybe holding a barbecue or shopping local sales. But is your wallet as free as you are? Financial independence is a big deal – it means being in control of where your money goes, when it goes there, and feeling confident in your decisions.
If you aren’t financially free just yet, we’ve got a few steps you can start taking on July 4th to get the process underway and help you find your independence!
- Automate Your Savings. Knowing you should save and actually doing it are two very different things – one is incredibly easy, and the other gets a lot harder after buying groceries, getting gas and making sure all the bills are paid on time. It doesn’t have to be a lot, but making sure you put a little away each month can make a big difference in your financial security. Plus, you can make it even easier on yourself by setting up automated payments to your savings account so you don’t even have to think about it.
- Think About Retirement. It may seem like it’s a long time away, or it might be right around the corner – either way, if you aren’t thinking about your retirement yet, you need to. The sooner you start putting money away into a 401k or an IRA, the more return on your investment you’ll get. The longer you wait to start contributing, the longer you’ll find yourself working, and the longer you’ll have to put off spending your golden years the way you want.
- Analyze Your Spending. Do you know where your money goes each month? It would be worth it to take some time to analyze just what you’ve spent and where you’ve spent it. Little things, like a lunch out here and coffee there, may not seem like much until you find it ate up half your spending budget by the end of the month. Give yourself something to work with to build a budget – if you know where your spending weaknesses are, you’ll know how you can grow and redistribute to things like retirement savings or an emergency fund.
What other important steps to financial independence can you think of? Share them in the comments below, or join us on Facebook and continue the conversation!
Want more holiday help for your finances? Check out this article: "Building Your Pot O’ Gold: 4 Ways to Save More"