It is important to ensure focusing on achieving financial independence doesn’t get pushed to the bottom of the to-do list. It doesn’t happen overnight. Here are 5 great tips to put you on the path towards achieving financial independence.
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Understand Your Household Money
Every household splits up responsibilities, but it’s important to ensure you still have an understanding of the financial process. Know the amount of income and other money coming in and what the average expenses are for each month. Develop a spreadsheet that you can update and review regularly.
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Have Money In Your Own Name
Even if you have a partner, it is a good idea for each of you to have accounts in your own name. This doesn’t mean you are setting things up for a catastrophe. It, however, allows each of you the accessibility and independence to make decisions separate from your partner.
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Open a “Guilt-Free Treat Yourself” Account
You work hard and deserve to award yourself. Open a separate account where you can tuck a little money away each month to give yourself a treat. By preparing ahead of time, you won’t feel guilty if you decide to splurge on a gift just for yourself.
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Invest In Your Future Self
Oftentimes if a household has one partner as the breadwinner, the other may go into autopilot and not focus on their own education and goals. It is important to maintain some type of independence so that you are not reliant solely on your partner’s future income or retirement plan. Financial education courses can help you learn more about investing, IRAs, and planning. There are segments you can learn online or speak to someone at your credit union or financial institution.
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Create A List of Your Future Needs
Don’t forget about your life desires. Create a list of your future needs and wants and make sure you place them as high on the priority list as others’. It is a form of self-care that should never be ignored.