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Our Guide to Attaining Financial Freedom in 5 Ways

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You may be wondering why you struggle with financial problems beyond obvious external factors, and it’s a natural question to ask yourself who can solve them. It may be surprising to learn that the solution starts with you because you may not feel in control over your finances. Whether it feels like it or not, achieving financial freedom is possible by doing away with some unhealthy habits, such as lack of savings, impulse buys, late payments, and others. Working together with trusted black financial advisors can help you rethink your beliefs about money and change your bad habits to get you on the right path with your finances. Here are some of the ways you can achieve financial independence that seems so elusive!

Understand Why You Spend

Getting caught up in the capitalist hamster wheel can be very addictive and quite costly. Every day people are bombarded with advertisements showing that the next new product, service, or goods will help them become happier, more interesting, or more attractive after purchasing and consuming. Understanding why you feel such a strong need to own a particular product can put your sense of worth into question. You might have asked yourself if you’re not as good as the next person based on their possession of material abundance. Consider whether shopping for different things will make you more attractive to people and how empty you feel if you can’t buy new or expensive items. Part of financial literacy is understanding these motivations to help you reevaluate your money’s worth and your value as a person, irrespective of your belongings. 

Make Being Debt-Free Your Goal

Doing what’s necessary to lift yourself out of debt can be difficult but also extremely liberating. Experienced African American financial advisors can help you face the reality of how much you really owe and get you to take the first step in addressing it. There are two ways to tackle debt, the first being the high-interest approach, which prioritizes bills with the highest interest rates to get the most financially draining responsibility out of the way. The second is the smallest balance approach, where you pay the least expensive bill to minimize the psychological impact. With these methods, you feel a sense of accomplishment for every bill that is accounted for. Neither approach is more advantageous than the other, so it’s a matter of preference and what helps you the most in achieving a $0-balance goal. 

Create a Monthly Savings Plan

After understanding how much you spend and establishing a method to get debt out of the way, you can draft a plan using basic budgeting methods to progress with savings. Divide fixed and variable expenditures to see where you can and can’t make adjustments and plan your savings based on that. Adjust accordingly. 

Get a Group Together

Forming a group to hold each other accountable for the financial decisions each person makes is a great way to keep on track. Having the support of like-minded people will increase your chances of achieving your financial goals. 

Delay Moving Out, Where Appropriate

If you’re eager to move out and establish your independence, then you may want to rethink the decision when confronted with the financial repercussions. Sure, moving out will give you the freedom to live life the way you want to, but it often comes at the price of building your savings. Consider delaying your move until you have a concrete financial plan and the means to achieve it. This idea is not new to the Black community and is deeply rooted in history as newly freed African slaves came together to pool resources, reduce expenses, and protect each other. It’s a timeless approach that still works to this day. 

Conclusion

Financial freedom may seem like a long way off, but the fastest way to get there is simply getting started. Breaking bad money habits can take time, and putting in the work is necessary to change one’s beliefs about money. By following these tips and learning more about steps to financial freedom with trusted black financial advisors, you might just find your way to financial independence and empowerment sooner than you think.

Are you looking for black female financial advisors to provide tips on your specific needs? At blackwallet® we work to provide you with the best content on financial advice based on merit and experience in the greater community. Read our latest stories to help your financial independence today!

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Written by John D. Saunders

John is a Marketing Strategist and Consultant with a knack for financial literacy. As the Founder of 5Four Digital,
a Marketing Agency in Miami, John leverages his understanding of money management and Marketing to create financial opportunities.

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