Rebuilding your finances after any time of significant change can be challenging to navigate. Luckily, there are a few tried and true ways to find the right path to your financial independence.
One of the most recommended courses of action is to increase your income though that may not be a feasible strategy for everyone. Beyond the standard cutting back on expenses and finding ways to turn passions into profit, here are four other ideas to finding your financial independence.
Revisit Your Goals
It’s likely that if you have suffered a recent trauma, loss, or another life-changing event, your financial goals have also changed. So before diving into any new financial strategies, revisit your priorities and get clarity around your long-term goals.
For some, it may be paying off a mortgage. For others, it might be funding college for their children or having enough savings to retire early. The steps you take to achieve financial independence will largely depend on your specific goals. Set those goals early and evaluate them annually to make better financial decisions.
Hire A Financial Advisor
When we have medical concerns, we consult a doctor. When we need our air conditioner repaired, we hire a professional. Why then are so many people trying to solve their financial problems?
Hiring a financial advisor helps take the emotions out of the process and focus on the issues that matter. The best advisors will help frame your goals, understand your challenges, and then guide you through making the best decisions that are right for you. Consult this list from Forbes for the best wealth advisors in your state.
Create A Flexible Budget
Whether you’re new to budgeting, taking it on after the death of a spouse or loved one, or getting back on track after a financial crisis, a flexible budget will help you visualize your goals and keep you accountable.
Decide on your spending categories and do your best to track every expense. It may take a month or two to see where your costs can be adjusted or opportunities to increase your income.
List your top three financial goals at the top of your budget and read them often. Then, when it’s tempting to spring for that spur-of-the-moment expense, you’ll be reminded that you’re working toward a larger goal.
Learn About Investments
The stock market, mutual funds, real estate investments are exclusive to the financial community. However, anyone can learn more about investments and educate themselves about how to diversify their income through creating investment opportunities.
Don’t let the new terminology or confusing guidelines discourage you. Talk to your financial advisor about your goals and let them know you’d like to explore different earning strategies. When investing, keep your goals in mind and adjust your risk level based on your anticipated retirement age or expected expenses.
And, play the long game. Of course, the stock market will fluctuate, and it will be tempting to jump ship at the first downturn. However, history tells us that those who play the long game will perform better and come out ahead.
If you’ve gone through a loss and come through the other side, you’re already winning! Implement some or all of these ideas, and financial freedom will be one step closer.
This is a collaborative post.