As we all continue recovering from the pandemic, we find ourselves in a space that truly calls upon us all to work smarter to become financially independent. Why?
With the cost-of-living crisis in our midst, we must all pull our finances to the level to match the inflation rate. We all knew coming out of the pandemic that the economy would be adjusting and it is.
The Federal Reserve raised interest rates by 0.25% in March and we know there will be six additional increases throughout 2022. Kitchen table issues take into account the increase in food prices, gas, and goods. Investing in stocks, bonds, and other commodities will yield dividends that will likely outpace the inflation rate.
How to become financially independent:
- Knowledge is power so study the stock market, have a section with a financial advisor, talk to your local banker and learn as much as you can about investing in stocks, real estate, cryptocurrency, and more. Self-study is important because you won't be going in blind and with a basic knowledge of what can help you assist your family finances in navigating this inflationary cycle.
- Start investing, there is no perfect formula and or secret sauce, just get started. Why? The sooner you start investing the more you will learn about the process. There is no overnight success, invest from a long-run perspective meaning, you are in it to win it in the long run.
- Prepare for life events that may take place in your life such as marriage, having a family, moving or going to college. The bottom line is this, just as no one saw the pandemic coming, there will likely be other significant events that come our way in the future. Preparation is the key and we all received experience from COVID-19 and we know what to do if something like this happens again.
- What about your spending habits? Do you know how to establish a budget, financial plan, and more? Once you establish your financial budget it will be a window into becoming debt-free. You will be able to understand your spending habit and make adjustments to work to become financially free.
- Work to maximize your credit score. Your credit score is the byproduct of your spending habits, credit card debt, personal and student loans, mortgage, and more. Formulate a spending plan, an emergency fund, and build your credit.
- Set aside money to help your family. The awesome power of service to the family is priceless, so ensure you have a purpose for working, saving, and building your family one dollar at a time.
- Retirement is in your future, what you do today has everything to do with your tomorrow. The sooner you start to save, invest, and generate wealth the more you will have in your golden days.
There is more, however, this will get you out the door when it comes to becoming financially independent. Everything listed here will help you, start today!