Ease Yourself Into Financial Independence with These 5 Tips
No one wants to be dependent on someone else’s money forever. Well, some people do, and those heirs to fortunes probably aren’t reading this article right now. For us in the real world, we want the rite of passage of financial independence, maybe even working towards retirement one day. As financial security seems ever fleeting in our time, you can make a few easy moves that will keep financial stress away.
Figure Out Your Budget
Just sit down and do it. Let’s say our rent is 1,000 dollars a month and your utilities are about 200. Try to approximate how much you spend on groceries, going out, clothing, etc. If that all totals to $2,000, make sure you’re making at least that much per month (AFTER 30% taxes).
Two pro-tips. 1) Be honest with yourself; shooting low will only hurt you in the future. 2) Download Mint or another budgeting app if you need help approximating and staying on track.
Cut Down on Food Costs
I know that the dollar menu options are tempting and seem cheap at the time. But they’re burning a hole in your wallet over time, not to mention making you feel like a pile of garbage for the rest of the day. You can save time, energy, and your health by making simple recipes and shopping smart.
For example, think about how to make chicken Alfredo. If you bought two pounds of store-brand frozen chicken breasts ($4.40), a package of fettuccine ($1), a jar of Alfredo sauce ($3), and a loaf of French bread ($1.50), that totals less than $11 for two dinners for two adults. Not only that, you made it yourself, so you can high-five yourself for properly adulting today.
If you don’t know what to make, you’re a liar. With all Tasty videos spammed all over your Facebook wall, you really have no excuse for not trying simple and delicious homemade recipes.
Pay Off Your Debt
So many millennials graduate college with debt. Whether it’s student loans, car payments, or credit cards, we’re saddled with creditors before we can even start earning anything. Get them off your back ASAP and pay it off. Start by getting rid of credit card debt, then use the money you’ve freed up to pay off the other ones. If you’re worried about accruing more debt, then don’t use a credit card. Just keep the plastic in your wallet for dire straits or emergencies.
Put a Little Bit Aside Every Paycheck
First things first, get a bank account. Then, get a savings account. Got it? Good.
The next step is putting in a little bit every month. You might kick in 200, 100, or even 50 dollars a paycheck, but it really adds up. Think about it: 50 dollars per paycheck, you get paid twice a month. After a year, you have 1,200 dollars you didn’t have before! The trick is reminding yourself that you never had that money in the first place. You’re not removing it from your paycheck, you’re putting it where it belongs.
Talk to an HR rep
Contributing to a retirement fund or 401(k) and making sure you have the right insurance package are complicated but important ways to prepare you for a bright financial future. No one is asking you to go in alone, so make sure you don’t force yourself to do so either. If you work at an established company, make an appointment with an HR rep. Remember, this is LITERALLY their job to explain this stuff to you. If you’re working on a freelance basis or don’t have a formal plan, reach out to your bank to set up your own retirement fund separate from your savings account.
