Financial independence is something a lot of younger and older adults alike strive for. The ability to pay your own way, and to be able to rent a home or pay the mortgage on your own, is a dream a lot of us hold at one point in our lives. We don’t want to have to rely on someone else, and we don’t want to be living paycheck to paycheck, and often reaching out for aid from others. Of course, there’s nothing wrong with asking your loved ones for help, but it can make you feel like a burden, can’t it?
There’s lots of ways to make extra money, but a lot of us don’t have the right tools or access to them. Some of us find it hard to get a job that pays the bills, without needing to supplement our income. And quite a few of us have to pool our resources with others, like roommates or a partner, which makes planning for your own future a lot harder.
In the aim of being able to stand on your own two feet with your finances, we’ve compiled a couple of tips below to help you up off the floor. Everyone out there has been in some sort of position like this once in their lives, and it’s time to recognise that, and then work with it to achieve the independence in your bank account that you really want.
Downsize on What You Own
Financial independence often requires a lot of sacrifice. You might have big dreams over owning a large house with a large family to put in it, but those dreams don’t come true overnight. You have to start small first, and you have to make sure you don’t run ahead too fast.
Do try to downsize as much as you can. Move into a smaller home – rent a flat with only a couple of bedrooms for the time being, instead of the three or four bedroom house you’re currently in, meaning you won’t have to turn to no guarantor loans just yet to make ends meet. Or you could move to an area with a lower cost of living, if moving into a smaller home isn’t quite practical for you.
You could also clear out the contents of your home – downsize your wardrobe, your kitchen cupboards, your garage, your attic etc. These are all places where goldmines can be discovered, if you have a lot of clutter and plenty of ways to sell it. Because once you cut out the clutter, you can put all of the resulting money into your savings account. Every single penny you make takes you one step closer to financial freedom.
Work Out What’s Worth It
This is in terms of investment. You don’t have to get yourself on the stock market, and you don’t have to put any of your money into assets that are neither tangible or sellable on a wider market. Instead, you could turn your love of jewellery and accessories into a profitable business, for example.
If you’ve got an eye for the fine things, like rings with real precious stones, or scarves from designer houses that you caught on sale, signing up to auction sites and registering your pieces can make you a lot of money here and there. These auctions are quite regular, so get an eye for what’s already being sold, and see if your sellable pieces also fit the bill.
Financial independence requires you to know your stuff. If you have a collection of anything, even Pokemon Cards, there’s going to be someone out there who wants your ‘stock’, and is willing to pay big money for it. So keep an eye on the market, and make sure you know the trends in what possessions are popular right now, and what ones you’re better holding back until a boom comes around.
Could You Stand On Your Own Two Feet One Day?
That day might be a lot closer than you think! You’re already doing a great job of coping with your finances, and making them work based on your income and your expenses, but that doesn’t mean you’re without dreams!
You want to be able to take that holiday you’ve been planning for for years, or you want to be able to afford that house down the street that’s for sale. Either way, financial independence will allow you to save for them without needing to cut back elsewhere, or rely on anyone else.