7 Attributes a Financially Free Individual Possesses
The idea of being financially free seems like a fairy tale.
Yet, it's achievable through hard work and honest insights. The truth is, it
isn't about how much money you earn,
it's about what you do with that
money that counts.
Too many people are waiting for their ship to come in or that mystery windfall to hit. They've fooled
themselves into thinking it's the only way to get out of debt—and stay that
way.
Instead, people who are living debt-free are those who have
worked for it and continue to do so all the time.
What you need is a strong plan and a mindset that helps you
stick to it year after year. If you can change your habits to reflect the below
attributes, you can rid yourself of debt and live a life that's financially
free.
- Deal With The Facts Of Debt
There's no point ignoring money concerns or problems. They
won't go away if you turn a blind eye to them, and they may even get worse.
It's far better to deal with financial concerns head-on, and
acknowledge when you're putting yourself in debt or could be doing so. Once you
look at the facts of the debt, you can build a plan to get yourself out of it.
Getting into debt with your eyes wide open will allow you to
work your way out of the situation far easier. If you understand what you've
signed up for, what the repayment terms are, and the implications of late
payments, you'll be better equipped to manage your money.
You need to understand every facet of your debt and never
ignore monthly repayments or bills. If you face facts, you're equipped to make
smart decisions, and if you're aware that you may not meet obligations, you can
attempt to renegotiate a payment plan upfront.
- Focus On The Details
Keeping track of your finances is all about focusing on the
details.
You need to know exactly how much you earn and how much you
spend, and why. This may be tougher if you're self-employed, as your earnings
fluctuate. However, it's even more
important then.
Draw up an income and expenditure list along with a budget. Then track where your money goes and
look at where you can cut costs or save a little extra.
Having exact knowledge of your personal finances allows you
to make informed decisions about whether you can afford to make a purchase, or
if it's worth going into debt for.
- Be Confident In Yourself
One of the quickest ways to get into debt is to let popular
opinion sway you, or let your self-worth be reliant on the material items you
own.
People who are financially free are confident in who they
are. They don't need status symbols like the latest gadgets or newest cars, and
they'd never buy something simply to impress others.
- Curb Your Impulsive Urges
Impulse shopping—big or small—can kill your budget quickly
and put you in debt. It's essential to train yourself to be patient, and you
should definitely do your research before you hand over your money. Impulse
buying gives you instant gratification, but it may lead to financial problems
when you find that you've overspent once again.
Instead of splurging on a whim, wait until you have enough
money saved to afford the items you really want. Waiting and saving give you a
much better sense of satisfaction, and they can keep you from getting into
debt.
If you really want to purchase something out of your budget,
there are several ways to earn extra money. The internet offers plenty of
income-generating opportunities such as doing paid
online surveys, data capturing, or transcribing. Another thing you
can do is opt to put other talents you have to good use, such as cooking or
baking.
Generating extra income from a side hustle will still teach
you to not be impulsive, and it will make completing your purchase sooner a
possibility.
- Take Responsibility For Your Actions
You'll never gain control of your personal finances if you
don't own up to the truth behind your spending habits.
It may be scary to scrutinize how you spend your money and
work out where you're spending recklessly. However, once you take that first
step, you can change those habits and create better ones.
The process won't happen overnight, and it's
important to note that acknowledging your bad habits is only the first step.
Once you're on the right path, you'll need to have the strength to move forward
and not slip back into your old ways. However, you can do it with the right
amount of honesty.
Hold yourself accountable for every purchase and own up if
you've spent money frivolously.
- Know How To Use Credit
Many people trying to get out of debt and be financially
free think of credit cards as the devil, and avoid them at all costs. There's a
serious negative stigma around being in debt, but if it's manageable and the
repayments are within your means, there's no reason to avoid it completely.
Those who are financially
free have learned how to use credit cards, store cards, mortgages, loans, and other lines of credit to their
advantage. Just because you have a debt that you need to repay doesn't mean
you're not in control of your finances.
If you can learn how to take acceptable risks with credit,
not use more than you can pay back, and have a healthy relationship with money,
you can still use credit and be financially free.
- Avoid Being Materialistic
If you spend your life in constant pursuit of the latest
trends, you'll never be truly financially free.
Keeping up with trends is expensive, and you're more likely
to put yourself in debt just to purchase material items with a short shelf
life.
People living without debt are usually those who aren't
chasing a lifestyle beyond their reach. They don't need to always be on trend
or have the latest release because they know they'll have to sacrifice their
financial wellbeing to get there.
Letting go of material desires is an important
part of aiming for financial freedom.
Nurturing the attributes that lead to financial freedom is a
worthwhile pursuit, no matter what your current financial position may be.
Becoming financially free takes time, patience, and dedication, but it has the
potential to change your life.
