Financial independence is the key to taking command of your own life. As the generation changes so do their financial choices. However, it is key to finding the right balance between how much money you earn and your savings. An underlying factor in securing financial independence is that one must not only think about the present but also plan for the future. Many of us struggle with keeping track of our expenditures while many don't earn enough for genuine savings. Keeping all aspects in mind, know how to achieve financial independence.
-- Track your spending. There are apps that you can put to use. Tracker apps not only track your daily and monthly expenses but also helps to gain knowledge about how much money you are spending on what aspect of your life, like travel, food, lifestyle etc.
-- Come up with a realistic budget. You do not need to cut back on things you like. Prioritizing is key here. Try to plan ahead what you are going to spend your money on.
-- Create an emergency fund that will help you deal with unforeseen circumstances without borrowing money. This has to be kept separate from your savings.
-- Pay cash for expensive things and avoid loan for small purchases. Cash is often the best way to go as it saves you the monthly interest payment you would otherwise have to pay.
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-- Create an investment strategy. There are many forms of investment: some are more easily accessible, while others are more complex. However, even a small contribution to your investment is the potential for additional income and financial independence.
-- Tracking your monthly bills and paying them on time will help you manage your spending and avoid fees or additional financial burdens.
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(With IANS inputs)
