Financial freedom sounds like a great goal to set in 2021. But this phrase can often be too vague or feel out of reach. What does it actually mean to achieve financial freedom?
The truth is that financial freedom might have a different meaning for every person. If you are someone currently facing bankruptcy, then financial freedom might look like this: a debt-free lifestyle, money in savings, and a strong enough income to cover all of your expenses – with excess to spare.
Tips to Improve Your Financial Situation
As you are setting your goals for this year, it’s smart to consider how your efforts can add up to more significant results in the future. Here are a few financial strategies you might use going forward:
1. Know where you are starting: You can’t improve your finances if you don’t have a clear understanding of your current situation. Take an assessment of all debts, assets, income, and cost of living. Then, look for ways you can improve each of these categories.
2. Hire an expert: Without professional services, you will continue making the same financial decisions – which will continue giving you the same results. Hiring a credit counselor or bankruptcy attorney can be an invaluable asset to overcome the current economic challenges you are facing.
3. Set short- and long-term goals: Not only do you need to be looking at where you want to be at the end of the year but identify the actions you should be taking right now. For example, if you want to be debt-free by December 31, 2021, then create a plan that will give you incremental steps to follow throughout the year. Short-term strategies might include following a budget or finding a new job. Long-term strategies should focus on wealth-building, such as retirement savings and investments.
4. Increase income and cut spending: To stay debt-free, you need to be bringing in more money than you are spending. Look for ways you can increase your paycheck. At the same time, find solutions to reduce spending when possible.
If you are facing a difficult financial situation right now, then filing bankruptcy might be the first step you need to follow to reach your goals this year. Miles & Hatcher, LLP is here to help. Call if you’d like a free consultation: (909) 481-4080.