Financial Freedom

Financial freedom is a term that is used when individuals are speaking about getting out of debt and staying out of debt. With many individuals living beyond their means, wages receding, and inflation rising, finding financial freedom is becoming more and more difficult each year. Here are several tips that can help an individual find financial freedom and remain debt free.

Tip #1 – Use Debit Cards Instead Of Credit Cards
Many people do not like to carry cash with them because they are afraid of being robbed, having someone steal their money when they are not looking, or losing their cash out of their pocket, purse, or wallet. If you are one of the people that do not like carrying cash around with you, consider using a debit card. Debit cards use the money in your bank account to pay for your purchases and you will not have to worry about interest payments or late fees on the items that you purchase. Although some find credit card options much better. It’s a personal decision. Some of the best cash back credit cards are way better deals than debit cards.

Tip #2 Don’t Spend More Than You Have Available
Each year, banks and credit card companies take in billions of dollars in over-limit charges and bounced check fees. Each transaction that puts you over the limit could cost as much as $35 and many companies will process the largest purchases before the smaller ones in order to collect more fees. Be sure to know how much money you have available and what your credit limit is before you begin to spend money to avoid numerous fees and a destroyed credit score.

Tip #3 Avoid Buying On Impulse
One of the biggest money drains you will encounter is the impulse purchase. Many of the items that are bought on impulse are rarely used and often sit in a closet still in the box or with the tags still attached for months or years after the purchase. By learning how to resist the temptation of the impulse purchase, you will find that you save a great deal of money and avoid cluttering your home with unnecessary items.

Tip #4 Compare Prices
Often, the first price you see or receive for an item is not the best price on that item. Price comparisons can save you money on everything from groceries to insurance to club memberships and can often get you a lot more for your money. Price comparisons are so popular that there are many websites on the internet that allows you to compare items across a number of different retailers to determine which one has the best price.

Tip #5 Keep Track Of Your Spending
Keeping an accurate account of how much money you are spending and what items you are spending your money on will help you identify areas where money is being spent unnecessarily. Identifying problem spending areas in your life and correcting them is one of the best ways to discover financial freedom.