Tips to help you tackle the 6 challenges holding you back from financial freedom

Living pay cheque to pay cheque and struggling with debt makes it difficult for people to achieve financial freedom. Picture: Freepik

Living pay cheque to pay cheque and struggling with debt makes it difficult for people to achieve financial freedom. Picture: Freepik

Published Apr 20, 2023

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Recent interest rate increases as well as the rising cost of living have left people struggling to make ends meet and pushed them further into the debt trap.

Living pay cheque to pay cheque and struggling with debt makes it difficult for people to achieve financial freedom.

However, people can take steps to reclaim and reach financial freedom by paying off their debt, establishing an emergency fund for yourself and meeting their living costs.

DebtSafe shares six challenges stopping you from achieving financial freedom and how you can tackle them:

Unclear about your financial goals:

When people know what they are working towards and have short-term or long-term goals, the necessary direction and motivation to reach their objectives will already be in place.

Compile a categorised list that have short-term and long-term goals. Review the list regularly, and add “goal achievement dates” to a calendar.

Lack of financial education:

While many people have not learnt how to handle their finance, getting a basic understanding of personal finance can be beneficial.

If you are looking to learn more about handling finances then there are plenty of resources available, such as podcasts by trusted experts, informative videos as well as blogs and books. Consulting a professional will help you make well thought out financial decisions.

Fear or responsibility:

For some people, achieving financial freedom can be scary. Financial freedom is doable by tweaking certain things in your lifestyle and daily routine.

By continuously reminding yourself about your responsibilities, you can stick to your budget while moving away from impulsive purchases and avoiding taking on additional debt.

Poor organisation:

Organising your finances and adding a “priority list” can be beneficial in a financial plan. Create a budget that includes your financial goals and indicate your top financial priorities.

External factors

Things that are out of your control like fuel price hikes or inflation can be managed by making a few changes.

Focus on remaining proactive to keep your situation under control. Review your previous three months’ bank statements for any “spending leaks” that can be cut out.

No professional assistance:

Sticking your head in the ground and wanting to be independent when it comes to your finances is understandable.

But taking on the advice of financial planners, your banker or a recommended professional is important if you want to reach the end of the financial freedom tunnel.

IOL Wealth