Becoming financially independent means you’re ready for whatever life throws your way – anything from a sudden job lay-off to eventual retirement. It also means you have more choices when it comes to how you live, how you spend your free time, and what your next career move is.
Generationally speaking, millennials have the most challenging time saving money thanks to credit card debt, hefty student loans and similar obstacles. However, that doesn’t mean financial independence is out of reach. You just need a solid strategy in place for moving forward and the determination to make it happen, as well as the help of an excellent financial wellness coach. Here’s a look at how to get started.
Visualize Your Goals
Financial independence means something different to everyone, so start your journey by figuring out what it means to you. Where do you see yourself financially in five more years (or 10 or 20)? How realistic is your vision as it relates to your professional and personal goals?
If you’re struggling with this step, consider consulting some proven resources to take some of the guesswork out of figuring things out. Girl, Get Your $hit Together is a book written specifically for millennial women interested in putting together a workable plan for achieving financial stability.
Stop Seeing Savings as Optional
Many millennials who are struggling to balance student debt with a rising cost of living see savings as a luxury they can’t afford. If that sounds like you, it’s time to start seeing regular deposits to your savings account as a must – similarly to how you view your rent, your bills and other essential payments.
Paying yourself right alongside your utility companies and landlord challenges you to take a long, hard look at how you’re really spending your income. You’ll likely find numerous places you can afford to cut back. Reroute money to your savings account instead, and prepare to be amazed at how quickly it grows.
Be Proactive About Paying Down Debt
Paying down debt should be as serious a goal as adding to your savings because it’s essential if you’re serious about becoming financially independent. The smaller your debts become, the closer you are to being truly free of the financial burdens they can create.
Take a look at your income and expenses, including the amount you’ve chosen to put into savings every month. Decide how much of what’s left you can afford to put toward your debt. Covering only the minimum monthly payments isn’t going to get you out quickly enough, and you’ll wind up paying a small fortune in interest fees over the years.
Pick the Right Financial Wellness Coach for You
Deciding to get on the road to financial independence once and for all is an empowering decision, but it can be a challenging one as well. It’s not uncommon for young people to be unsure of where to start. A financial wellness coach can help you master lots of essentials like budgeting, saving and managing credit.
Start by taking my Financial Future Prediction Test to get a read on your current trajectory. Then when you’re ready to take the next step, enroll in my financial wellness boot camp to hit the ground running on your journey to lifelong financial independence and money literacy. With the help of a financial wellness coach and a little grit, your goals are right around the corner. Schedule a call with me today to get started.