A Millennial's Bucket List for Achieving Financial Freedom

It takes serious work and careful money management...
Frank Merola is Executive Mortgage Banker for William Raveis Mortgage LLC.

You've worked hard and hustled your whole life. You have a career that allows you to make ends meet. However, you still yearn for true financial freedom and want to find a way to achieve the independence you've always dreamed of.

Breaking free of financial shackles takes serious work and careful money management. Thankfully, the suggestions below are flexible. Take advantage of them, and eventually they’ll provide you with the financial capability to change your life for the better.

1. Master the Art of the Budget

Before you start doing any real heavy-duty saving, create a budget that takes into account all your regular expenses while still reserving a little extra money every month. This process can be tough, as it requires you to do some serious assessment of your spending habits.

Making a budget — and sticking to it — can be tough. Nearly everyone who does it, though, finds the sacrifice worth it. Knowing where your money comes from and where it goes is deeply satisfying, as is the security of building up a financial cushion for the future.

2. Create an Emergency Fund

The next important step is to create an emergency fund. Emergencies blow through your bank account almost no time, but building up your balance again afterward can take forever.

Experts recommend that you save an amount equal to six months’ worth of expenses for your emergency fund. The next time something big goes wrong, you'll be glad you did.

3. Focus On Reducing Debt

While saving is imperative, you also should make sure you’re “plugging the drain” by paying off any debt that you owe. There are several techniques available to help with this:

Always paying more than the minimum payment amount on your bills

Using debt consolidation, if necessary, to shrink your payments and make paying off multiple debts a more attainable goal

Investing your tax refund into your debt relief efforts

4. Expand Your Finances

Too many people try to get by with one source of income and find they can't survive on it. This is a frustrating reality, but it’s not insurmountable. Many methods are available to help expand your income sources, boost your savings, and increase your financial freedom:

Opening a 401(k), Investing in stocks, bonds, real estate, or Setting up a side hustle that brings you more money

5. Stop Limiting Yourself

People often suffer from the delusion that they’re limited in some way, or can't earn the success others have obtained. This mistaken concept can frustrate you and keep your self-esteem low. It’s also untrue. Look around for some inspiration to help you stop limiting yourself and start thinking big. If you put your mind to it, there isn't anything you can't do in this life.

 

  1. Be a landlord. Whether you buy a rental property or just rent out your home for a short period while you go away, it’s an experience worth having. This path does require an initial financial investment, but it can be so smart if you find an attractive place, especially in a big city with young workers looking to settle down or lots of visitors passing through (or both).

 

Fiscal limitations can leave you feeling hemmed in, it’s true — but there are lots of strategies to help turn a bad fiscal situation around. Many techniques of smart budgeting, debt management, diversifying sources of revenue, and strategic saving will offer you once-in-a-lifetime experiences while also helping you fund your future financial freedom.

Contribution By Molly Barnes, Digital Nomad Life

Frank Merola

Executive Mortgage Banker

NMLS Mortgage Loan Originator ID: 1020051

William Raveis Mortgage LLC NMLS ID #2630

Cell 508-740-5922

Email [email protected]


CapeCodToday.com welcomes thoughtful comments and the varied opinions of our readers. We are in no way obligated to post or allow comments that our moderators deem inappropriate. We reserve the right to delete comments we perceive as profane, vulgar, threatening, offensive, racially-biased, homophobic, slanderous, hateful or just plain rude. Commenters may not attack or insult other commenters, readers or writers. Commenters who persist in posting inappropriate comments will be banned from commenting on CapeCodToday.com.