Nowadays the term “rich” is gradually being replaced with the phrase “financial freedom”. Many people now are after financial freedom rather than being rich. But how on earth are you going to gain financial freedom without having a lot of money?
Being rich is more subjective than perceptive. Someone with low income may feel that he is richer than someone who earns more. Therefore, your financial situation does not necessarily define your financial freedom.
When you are stuck with a low salary and seeking financial freedom, there are several things you can do to achieve your motive without giving your salary a thought. Here are 5 simple ways to your financial freedom.
Assess your housing costs
Housing costs usually fill up a huge part of your family’s budget, making it much difficult to save. Generally, it is advisable to keep all your housing costs limited to about 25% of your total earnings, or even less if possible. In some parts of the world, this might be a little more difficult to achieve especially on a low income. But there are always good deals on homes for rents, so be diligent and search on. If you already own a house, you may consider refinancing your mortgage at lower rates so that you can save some money and direct it to investment.
Have a shopping plan
Most people often go out for shopping without a plan on what is needed and thus end up spending more than necessary. This is where most of your money leaks usually happen. Spend your money on a plan written way ahead of time for every month. This way, you will be able to figure out what is really necessary before you start spending.
Get used stuff
If possible, buy everything secondhand. Buy a used car, furniture, electronic products among others. There are many surprising deals that you can find on stuff that has been barely used when you decide to buy used things. Sometimes it is possible to find unused items that can’t be sold as new simply because their packaging is broken or already damaged. The amount of money you will be able to save here is certainly amazing.
Get rid of credit cards
Studies have shown that you usually spend about 12% more than average when using credit cards, as it is a smooth way of spending money. Don’t forget the charges on interests as well as fees that are accompanied with the use. If you cannot live without a credit card, simply device a proper plan of spending through it. For instance, avoid credit balances, never overspend and use it only if really necessary.
Get a side income source
Financial freedom usually does not come with a low income source and the situation could be worse when you really can’t increase your earnings. Instead, find extra ways of making that extra dime. Try out things that your buddies are already doing for earning some cash. This way, you can supplement your income and live the stress-free life you ought to live.
In conclusion, when you are bound to a fixed salary that is never going to increase soon, it is upon you to take a different dimension to make things work. The aforementioned methods are just a few of the ways you can make it work with a fixed and limited salary. There are many other ways you can use to get your way up to the financial freedom. But these five are good to get you started. Just be diligent and persistent in executing them and you will begin to realize some remarkable changes in no time.