We live in a country that values freedom and independence above all else. You have the right to worship how you want, live how you want, and educate your children how you choose. But while valuing the lack of government infringement in our personal lives, many Americans forget that financial freedom isn’t a given.
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In fact, with fewer social nets to keep you from falling into a financial abyss than in all of Europe, we have to work for and build our financial freedom. In a blog from the 4th of July, Suze Orman pointed out, “Financial independence is not something we snap our fingers and have to materialize right then and there. It results from a process that we create and then commit to seeing through. And that process can start at any time. Like today.”
What is financial independence to you? Is it having a stable job and an emergency fund? Is it paying off all debt? Or is it a work-optional lifestyle?
Financial independence may seem far-fetched when so many Americans struggle with debt or to keep up with savings goals. Instead of snapping your fingers or wishing for the best, Orman advises changing your perspective.
Sure, you can keep the big goals in your mind, but start with a small goal you can work toward right now. This vital move could help you hit your first financial target early this summer.
Orman suggests, “Make it a shortlist. No more than two or three goals. And honestly, focusing on getting rolling on one goal is great. It's up to you.” When you tackle the right goal, you’ll get relief and satisfaction that can help drive you toward the next goal.
The average American debt per U.S. adult is $66,772, and 77% of American households have at least some type of debt. If you’re struggling with a credit card, student, or other debt, it’s time to reassess your lifestyle and see what more you can pay off.
For example, if you have a 30-year $400,000 mortgage on a home you bought five years ago, paying the principal an extra $500 a month could help you pay it off eight years earlier. With a 7% interest rate, you’d save over $150,000 in interest payments. Even if you locked in a 4% interest rate, you could save over $70,000 on interest with the same repayment strategy.
Regardless of your views, this July and running into the election season, remember your freedom in America, including the freedom to build your financial independence. Even in the face of soaring inflation and interest rates, you can try savings challenges, create a budget, and define your goals. Every little bit is one more step toward your long-term independence. Remember to celebrate your success!
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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