You could consider yourself financially free if you are debt free, and when you have multiple sources of income. What it means is that you will need to have sufficient savings along with a steady income. In the true sense, even your investments should start yielding regular revenues.
When a person is free from financial pressures, he is able to live a stress free life. If you are concerned about your credit card debts and want to become debt free, here are some ways mentioned for easing the burden of your credit card debt Generally people make wrong choices with their financial decisions.
There are number of companies offering credit cards with higher spending limits. Similarly, getting a title loan in California or in any other state in the US is quite easy these days. However, you will need to be very calculative when taking up such offers. You wouldn’t want to be in a situation where you will have to sell your assets to raise money to clear your debts. Therefore, you will need to clear off your debts as a priority, before you get totally burdened under the interest amounts and late payment fees.
It is very important to save money, which can happen only if you spend your money diligently. Try to eliminate non essential expenses. You can make a list of your all your needs, and give high priorities to the things that are really important. For example, you can stop eating out and prepare your own food. Similarly, you could do exercises at home instead of joining an expensive gym.
Find out where your money gets wasted:
To track where your money goes, make a list of all you purchases on a daily basis. Then you can calculate the cumulative spending of a week or a month. It will help in analyzing the spending you make, and you will be able to identify the areas where you could cut back.
Ask for Help with your credit card company:
Explain your financial situation to your credit card company and ask them for help. They may waive off your penalty on late payment fee, or they may even reduce the interest rate. It will give you a better opportunity to catch up.
The most important thing which disturbs your monthly budget is the monthly subscriptions. You could also think of downgrading or canceling some of them. That can actually help you save on sizable amount of money every month.
Avoid rewarding yourself:
We tend to be a little too extravagant whenever we feel some sense of achievement, where we end up rewarding ourselves in different ways. At the same time, it is important to look at the bigger picture in life and save for tomorrow. Don’t let small achievements make you go overboard with your spending.
Save money on your energy bills:
In order to cut down on your expenses, you could use energy saving lighting fixtures instead of old types. Also, you could change your home insulation system to bring about more efficiency in you heating and cooling systems.
Earn extra income:
You could think of ways to generate more income. Ideally the additional income streams that you choose should depend on your expertise and interest. Of course, you could always put in extra efforts to lean new things.
If you have the flair for selling, then you could also try affiliate marketing and sell 3rd party products or services. Affiliate marketers earn good commissions, but there are many who are simply unable to sell. Think carefully before choosing your additional income streams. It would not make sense if you lose money on your new ventures.
This article has been written by R.D banker, and he works as a financial consultant. He has written many well researched posts to help people come out of debts and achieve financial freedom.