Many millennials are still trying to find financial independence because no one taught us how to manage money.
We were taught to cook, clean, and sew in middle school, but no one talked about finances. We didn’t even know it yet, but we were hanging out in an economy that had grown to be more expensive than what our parents had lived through at the same age, and we had no idea how to navigate it on our own.
This is a sponsored post that was written in exchange for financial compensation. All thoughts and views are my own. Read my disclaimer here.
The sad part is that at 36, I’m still not entirely up to speed with managing my finances, but I am actively working on it. The goal of this post is to share the steps I’ve been taking to get closer to the financial freedom and independence that I’ve been looking for all of my adult life.
In reality, I believe that women today have many advantages that women didn’t have before, specifically the decision to have separate bank accounts from their spouses. And, thank god! I love having a bank account where I control what goes in and out without someone else approving the purchases.
Now, I’m sure you can tell at this point that I am not a financial guru, nor do I know everything there is to know about finances. But, I want to share the things that have helped me throughout my financial journey.
Steps To Take Toward Financial Independence
Calculate The State Of Your Current Finances
How much are you making each month? What do you put aside for rent, utilities, and all the things you’re currently spending money on? Simply put, you need to know what you’re bringing in, how much you’re spending, and why you’re spending it. Being intentional about money is something that you can learn by asking yourself straightforward questions.
What worked for me is was creating a budgeting spreadsheet. Yes, it was a pain to keep up with since I had to input everything manually, but it made me more mindful of what I’m spending where I’m spending it, and it helped me create a budget for the entire month.
Ask Yourself Why
Why do you want to become financially free or independent? This may be the biggest question that fuels your drive to make changes in your life. Do you want to get out of debt, travel the world, or buy a house? These are all valid questions to ask yourself throughout your process. Of course, these questions may change over time, and that’s okay.
My reason is to stop living paycheck to paycheck. I want to travel the world and go to every concert I want to go to, no matter the location and cost. Ultimately, I want to live comfortably and be free to do as I please.
Split Your Paycheck Up
This might have been one of the most frustrating decisions I have ever made because when I get paid, I’d want to see the total amount of money drop right into my bank account. However, I never learned how to save money.
For me, it’s been tough to separate my money into a savings account because if I have the money, it’s there to spend. Yes, I know that I have a mindset block, but splitting my paycheck has helped – big time.
I currently have my paycheck split up into a few different accounts and have recently started using one of the accounts as my expenses account. Whenever a bill needs to be paid, I use the account to accumulate extra money to pay bills. It’s been working well for me so far.
Consolidate Your Debt
Consolidating my debt was one of the best things for me. I have so many student loans that I’ll probably be paying off forever, and it was hard to keep up with different pay dates because they were serviced through different companies. Consolidating those accounts into one helped me manage my payments better and know how much was coming out of my bank account and when.
Another option is getting a debt consolidation loan. It’s a great solution, as it helped me pay off some of my credit card debt. I even improved my credit score. If you’re looking for more information on how to consolidate your debt, click here.
Again, I am no finance expert, so please take my advice with a grain of salt. I am just an average married woman who has been on a money mindset journey over the past seven years. It hasn’t been easy. But, I know that if I didn’t start caring about my money when I did, I wouldn’t be able to do anything I can do now!
This is a sponsored post that was written in exchange for financial compensation. All thoughts and views are my own. Read my disclaimer here.
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