Sky-high living expenses, increasing debt situations and trying make ends meet are just some of the problems that can prevent people from achieving financial freedom.
Carla Oberholzer, DebtSafe, debt advisor said, “Once you have paid off your debt, established an emergency fund for yourself or your household, and have the income to attain your life goals, while also meeting your living costs, you can reclaim and reach financial freedom”.
If you earn less than what you owe and have more ‘month than money’ left each month, your income is insufficient.
Increasing your income by justifying a raise and taking on a new job that pays more or starting your own side hustle are just some ways to can ensure that have enough money in your bank account.
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.
Organising your finances and add a 'priority list’ can beneficial in a financial plan. Create a budget that includes your financial goals and indicate your top financial priorities.
Things that are out of your control like fuel price hikes or inflation can 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:
Stick you head in the ground and wanting to be independent when it comes to your finances is understandable.
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.