In the United States, debt is a way of life. In fact, the American people hold nearly $15 trillion in debt.
From an early age, Americans start taking on debt in the form of student loans. As they age, credit card and medical debt become more prevalent. People take on additional debt to purchase vehicles, homes, and many other material items.
It seems like a debt-free lifestyle is becoming the exception and not the rule. However, eliminating your debt is the only way to secure financial freedom.
Read on to address the question, what is financial freedom? Explore topics like how a side hustle can help with your personal finances.
Track Your Expenses
You cannot secure financial freedom without knowing where your money goes. Many people spend blindly and do not realize how quickly it adds up.
Think about your morning coffee at Starbucks. That $5 latte adds up to over $350 per month. Financial experts estimate that you can save over $150,000 by brewing your own company over a 40-year period.
There are many expense tracking apps out there. Here, you can follow where cash goes on a daily basis.
Some savvy consumers categorize their spending. They break it up into entertainment, groceries, transportation, and more. The end goal is to identify potential issues that are preventing your financial freedom.
If you are unwilling to reduce expenses, another option is to get a side hustle. Many people turning to the gig economy to boost their annual wages.
For example, you can drive an Uber or Lyft on your own schedule. Others are doing freelance writing or other virtual work to make more money. With the extra revenue, you can pay down debt or start saving more for retirement.
Reevaluate Your Business
If you are a business owner, you are always thinking of ways to bring in more revenue. Your business can always market better to bring in more customers and drive up sales. Another potential game-changer is steering more internet users to your homepage when searching for a business.
For instance, many businesses are finding value in targeted, industry-specific search engine optimization (SEO) efforts. This is increasing their company’s visibility online and generating more leads.
Debt is the primary anchor preventing you from achieving financial freedom. Think about the thousands you spend every year on interest on those student loans or open credit cards.
Whether you are reducing expenses or bringing in more revenue, this new cash needs to go towards debt reduction.
As you pay off open accounts, your monthly interest expenses are certain to decline. You can now pay off debts even faster with the ultimate goal to close out all accounts. Once debt-free, your money can now go towards savings or retirement.
Answering the Question What Is Financial Freedom
Financial freedom means something different to each person. For some, it means the ability to buy what they want when they want it. Others want a certain amount of cash for a rainy day.
The common variable for financial freedom is eliminating debt. The best way to do so is by reducing your expenses or increasing revenue with a side hustle. If you enjoyed this article answering what is financial freedom, check out our blog for more great content.