Do you have a new picture in mind regarding your financial freedom or independence, especially after various lockdown levels you have had to endure?
Everything is certainly not back to normal yet but, now is a good time to slowly but surely pick up the pace when it comes to your financials. Is your financial picture of independence, perhaps, the delight of pure happiness – to do what you want and when you want to again? Financial freedom can mean various things to different people. You, the youngster, possibly have new specific financial goals (like starting an emergency fund ASAP) compared to the senior, that wants (now more than ever) a level of some peace of mind during retirement.
“Financial freedom is indeed personal and others’ circumstances can differ from your situation. You never know how ‘good’ your situation actually is, when compared to those around you. And, you may have realised how blessed or lucky you are,” says Carla Oberholzer (debt expert at DebtSafe).
But, no matter how much financial goals or circumstances can differ, MONEY plays an important role in others’ and YOUR life. What is that famous saying again? Money makes the world go round. Perhaps a bit of a shallow concept for some, but indeed true. So, how do you make sure you gain your financial freedom back after lockdown?
By now you might have pondered a bit about what YOUR ideal financial freedom picture looks/can look like… Here are, therefore, FIVE FUNDAMENTAL ideas to help you continue the journey to reach proper financial independence and freedom:
1. Know the depth of your money situation & start to manage your money properly from there
Have you revised your budget at all? Ask yourself where you are at, financially speaking. Are you and your loved ones on the same page about the household’s finances and what does your overall money situation look like now? Where do you need to be and how are you going to get there? What will your unique starting point be (for example, cutting a few costs, implementing a plan for everyone to contribute to the household’s savings fund, etc.)? Taking the effect of the recent Covid-19 chaos and crisis into account of course.
2. Fix where/when you need some ‘financial fixing’
Usually, when you need to fix your financial situation, debt has taken over your financial picture. Get rid of your unnecessary worries and tackle your debt one by one. Expect results when you start to pay off the lowest debt amount (perhaps a store card) off first. And, go on from there – continue to keep the snowball moving until all your debt is paid or until your debt is more than manageable.
3. When you pay yourself first you can save bit by bit
Before those debit orders go off, it can help you to put an amount away first. If it is only R20 that you start off with – it’s okay. Times sure have been tough lately. Just start saving already. You never know when you’ll need that stash during another, upcoming emergency. And, you don’t want to make extra debt again, do you?
4. Your financial goals are extremely important, so commit
You need a clear picture of your new outlook on life (your short-term and long-term goals). And, be proactive to continually ‘chase’ those goals. Plan accordingly and know where you are going with your ideals. Short-term goals usually involve a savings fund (for events during the year like a Birthday or holiday) and an emergency fund (when, as you’ve realised, an unexpected crisis arises). Long-term goals will entail investment type of goals such as your well-deserved retirement, education (for yourself or dependents) and property investment related options (house/flat), for example.
5. It’s so good to give when you can/the time is right
Financial freedom is not only in receiving but being able to give in YOUR WAY through time via advice, resources, and/or if you are lucky, donations/money. You might not see giving opportunities right now after various lockdown levels, but perhaps when you have stabilised your unique mini-economy you can surely give a helping hand to someone in urgent need. It does not only tinkle the heart, but it also sets forth a legacy principle of paying it forward.
Don’t find yourself being held captive by your current financial situation but strive for financial independence – AKA freedom. It is possible if you plan well, look out for various opportunities or options AND be happy in the process. Remember, your financial freedom = most of all happiness, and it is a huge achievement. It IS possible and you can reach it. You just have to try hard enough and search for it around every corner.
By Carla Oberholzer, www.debtsafe.co.za.