Gain Financial Freedom Through Solid Personal Finances
Struggling to pay your bills each month is no fun at all. The only thing worse than barely having enough money to cover your monthly bills is discovering that you do not have enough money to cover each bill and being forced to decide which debt to default on for the month.
Not only will doing this wreck your credit rating, it can also have a devastating effect on your mental and physical health. If your money problems become too severe, it can cost you your job.
When you are able to make enough money each month to cover your bills, you will discover that it will have a freeing effect on you.
Not having to scrounge under the couch cushions for spare change just so you can cover the month’s rent will make you more relaxed and also make your landlord happier.
There are several things that you can do to help ease your financial stresses and possibly start the road to financial freedom
The first thing you need to do is determine where your money is going. Sit down and really figure out your budget. Are you not making enough to cover your monthly bills, or are you squandering chunks of it on other, unimportant things?
Keep in mind that the $12 dollars you spend at the movies, and the $5 extra you dropped on gas station treats really add up fast.
If you are like most Americans, you will probably discover that yes, your current job does pay enough to cover your expenses, but that it does not pay enough to cover your credit card debt.
If you are going to achieve financial freedom and peace of mind, you are going to have to get your credit cards paid off and it should be on top of your priority list.
One of the fastest ways to pay your bills and gain financial freedom is by getting another job. You want to look for a second job that will work into your current lifestyle.
For most people that means working in the evenings doing something that might be the exact opposite of their day job. For many people, it means returning to the kind of job that they probably had while they were in high school.
You cannot assume that the money you make from your second job is going to become disposable income. You need to take the checks that you make from your second job and use it to pay off your credit cards as well as any other bills that you have gotten behind with. Start with the smallest debts and work your way up to the big ones.
Make sure you are paying as much off on the bills as you can, and not just making the minimum monthly payment. If you only pay the minimum, you will never get out of debt.
Do not quit your second job just because you have gotten your debts paid off. Instead, you should continue to work it. Instead of spending the money start saving it. Put half of what you earn at your second job towards your retirement, and the other half into savings.
Your goal should be to save up enough money that you can afford to live for at least six months on just your savings. Once you can do this, you will be amazed at how much more relaxed you are.