Key Points:
Financial freedom definition: Financial freedom may mean different things for different people, but most people would agree that it covers three basic things.
If you are struggling to pay off debt, financial freedom may seem like a goal that is too far for you to reach. But you are only a few good financial decisions away from gaining your financial freedom, no matter how much debt you currently have.
How do you achieve financial freedom? What steps do you need to take right now, and what habits do you have to develop in the future?
Secure gainful employment in addition to other income streams you might be able to develop. You cannot achieve financial freedom without adequate income.
Evaluate your current income. Are you making enough money to make ends meet, with a bit extra that could be used to pay down debt? If not, think about some ways to increase your income.
Is it possible to increase your wages at your current job by taking on some extra shifts or developing new skills that will make you a more valuable employee? Would you be better off looking for a better-paying job elsewhere? What about a side gig? Do you have marketable skills that you could turn into another source of income?
If you earn more than you spend, you will be able to save money and use it to make your way to financial freedom.
To live within your means, follow these basic steps:
A budget can tell you where your money goes. It can also alert you to leaks in your spending you may not have identified otherwise.
Your budget allows you to plan and organize the flow of your finances, assuming control over them. Be realistic as you work on your budget to ensure your plan is one that you can follow long-term.
By saving up six months’ worth of expenses in an emergency fund, you will be able to handle a financial crisis without resorting to credit.
Emergencies happen all the time, but with the safety cushion of your emergency fund, you will be able to handle them without going into debt again.
Make a list of your debts and brainstorm some ways to reduce them. For credit card debt, in particular, look at the interest rates you are paying and determine which cards to pay off first. You can use the snowball method or the avalanche method to handle paying off your credit cards on your own.
Your debt situation may be so dire that you can no longer handle it on your own or through any of the methods involving full repayments, such as credit counseling and debt consolidation loans.
Debt settlement may be the answer for you. Through debt settlement, your creditor forgives some of your debt, allowing you to save money and get out of debt for less. Contact ClearOne at 866-481-1597 to learn whether debt settlement is the right solution for you and to get a free savings estimate today.
The information provided is for informational purposes only and is not intended to provide financial advice. ClearOne Advantage does not provide financial or legal advice. Please consult a certified financial advisor for individual financial needs.