Financial Independence Day

Anissa Ivy Anissa Ivy is a Member Service Representative in Gurnee.
  • Posted on 6/29/2015
What is your definition of financial independence? Is it when you no longer have to work another day in your life, because all of your financial needs are met from the income of your investments?
As you celebrate freedom this 4th of July, spend some time thinking about one day becoming more financially independent. Let the celebration of our personal independence give you a reason to consider your financial independence or lack of. What is your definition of financial independence? Is it when you no longer have to work another day in your life, because all of your financial needs are met from the income of your investments? Sounds pretty good!

To obtain your financial independence, here are a few things you should consider doing now.

Save Money Automatically

Research shows that the less effort it takes to save, the more likely you are to contribute to savings. Make it easy on yourself and automate your finances. Having money taken straight from your paycheck and deposited directly into your savings or retirement account is a critical money decision that boosts wealth. Plus, when you pay yourself first, you don’t see the money, so you’re not going miss it. You’ll avoid making the discovery so many people do when we pay their selves last, there is nothing left.

Budget, Budget, Budget

If you consistently spend more than you earn, the reality is that you’re going to accumulate more and more debt. Don’t continue on this path. You’ll be in it deep, in no time. Establish a budgeting system that works for you, whether that’s pen and paper, a computer program, or a website.

Round Up Your Mortgage Payments

If you’ve already refinanced or don’t qualify for a refinance, you may be wondering what else you can do to save on your mortgage payment, which is likely your biggest household expense. Have you considered rounding up your payments? Every little bit helps.

For example, say you have a monthly mortgage payment of $954.83. If you round up your payments to $1,000 by putting in an extra $45.17, you could pay off your debt up to two years and five months early. For further inspiration, run your own numbers using a mortgage calculator.

Focus On the Future

Many Americans think only about the here and now. For example, if they’re paying their bills and there’s food on the table and gas in the car, they feel they’re doing okay. But you’ve got to think about the big picture and connect your future aspirations with your present self. Research shows that when you do this, you’re more inclined to save money. Seeing an image of yourself at retirement age can make you better at saving. Leave out photos of your goal, whether it’s a picture of your dream home or a hammock on the beach in your ultimate retirement spot. Visuals serve as reminders that the future is coming, and you’d better start planning for it now.

Financial independence is worth the hard work and sacrifices. Building your nest egg and reaching your financial goals require time, attention, and patience. Consumers Credit Union can help you get a clearer view of where you are financially, where you’re headed, and what you need to do to reach your financial independence day. Visit us today.