How to Become Financially Free by Yearend
Becoming
financially free by the end of the year is possible if you take control of your
money and life style and stick to your intention as the highest priority. Even
if you are in debt right now, with some planning, you can end the year with
savings in the bank if you take time to do some financial planning now and make
goals to help you achieve your objective.
1.
Begin
by taking a personal inventory about the true state of your financial affairs
as they look today. Create two columns and in one column list the money saved
and assets you have available and
your regular salary or other source of
income The goal of financial planning is to be able to pay the bills in the
second column from what is available in the first column and still save money
2. The second step is to
create a weekly budget. Base your budget estimate on your weekly income.
·
Begin
by estimating your weekly income before you pay bills or do anything else with
your money.
·
Put
a minimum of 10- 20% of your weekly income before bills into a savings account
·
Then work out how much you expect to need to
pay in bills this month. Include all debts as well as utility and other bills
you may have or expect to receive. Ensure you budget to pay more than the minimum
amount on your debts. If you only pay the minimum required you will not achieve
your goal of being debt free.
·
Divide
that amount by four and this will give you a weekly amount you will need to
subtract from your income to cover your end of month bills.
·
Allocate
any remaining money for personal use, to increase bill repayments or to
increase savings.
3. The third step is to
look for alternative income sources if your expenditures (not including
personal use money) are greater than your income. This may mean taking a second
job or looking for a higher paying job. Short-term pain will equal long-term
gain.
4. Stop using any credit
cards and never use them to pay for food or clothes or utility bills. Repay
them as soon as possible to reduce interest on repayments.
By
focusing on these steps, your financial freedom by this year’s end is very
achievable.
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