Financial freedom is something we often dream of, whether you’ve been paying off student debt or simply learning how to manage your money. That being said, the past two years have caused economic difficulties for just about everyone.
As a result, you may find that you had to push back certain financial goals in order to get by. However, with the new year quickly approaching, it’s time to put plans in place that can help you achieve financial freedom in 2022.
Financial freedom: Improve your credit
As you get older, you’ll come to realize that your credit score is much more important than you might think. For example, your credit score could impact your ability to get involved in the real estate market. Thankfully, there are various ways in which you can go about improving and protecting your credit. For example, you can use sites such as compare credit to figure out which credit cards are right for you. That could stop you from making a bad decision and lowering your credit rate.
If you’ve found that you have more and more money leftover at the end of the month, then it may be time for you to start investing. Investing is a great way to grow your income over time. And if you aren’t sure where to get started, there are plenty of great investments to make in your 30s that you can rely on. Alternatively, if you feel like taking a bit more of a risk, you could look into investment possibilities off the beaten track.
Get serious about savings
In order to watch your bank balance grow, it’s time that you get serious about savings in the new year – whether you are saving for a house downpayment or planning to retire early. Thankfully, saving money has never been easier – whether you set up an online saving account or use a budgeting app to keep you on track.
You might also want to try out the 50:20:30 Rule, wherein you divide your monthly income into three separate sections. 50% of the money should go towards your needs, such as rent and amenities. 30% should be put towards your wants, such as dinner with friends or the occasional treat. The remaining 20% should be set aside for savings.
Know your worth in the workplace
Another way in which you can improve your financial situation in the new year is by ensuring that you are compensated fairly for your work. For example, you should research the average salary for your position at other companies and ensure that your paycheque matches up with others.
Alternatively, if you have been working at a company for several years or have achieved great success, you may also want to ask for a raise. While this may seem a little daunting, knowing your worth and being able to negotiate a fair salary for yourself is a great way to reach financial security. It’s also vital that you are not underpaid or undervalued in the workplace.