Finances don’t have to be a mystery. To empower your growth, we invited business and finance educator to give an introduction on how to become financially independent.
There’s no big secret behind financial independence. All it takes is a mindset shift to claim more agency in how you manage your money. In our latest digital workshop, neighborhood financial wellness educator and independent creative Justin Bridges of Freelance Kills takes us through the foundations of how to become financially independent.
What is financial independence?
As Justin puts it: “Having enough income to pay your living expenses for the rest of your life without having to be employed or dependent on others.” Watch the full webinar or catch our highlights below.
Consider creating a budget to kickstart your path to financial independence.
It can be a highly effective tool to see what your spending is on a per-month basis, and what your income flow is so that you know what money to put where.
One of the first steps behind how to become financially independent is chipping away at your debt.
Justin says, “for most people, ridding themselves of debt is the most emotionally freeing and positively impacting thing they can do to jumpstart financial independence.”
Maybe you’re more of a snowball method type of person.
“Paying off the smallest debt to the largest debt [while] paying the minimum payments on all the other debts you’re not focused on. [When] starting with that smallest debt, you’re building up momentum, you’re knocking that out, then moving on to the next biggest one.”
Or maybe the avalanche method will serve your needs better.
“You start with the highest interest rate, usually that’s credit cards, then work your way down, ending with your lowest debt, probably something like a student loan. It helps get [your highest interest] out of the way, then you move on.”
Looking for more on financial wellness? Check out other blog posts from our business growth resources!
- “Entrepreneurial Bookkeeping 101: Why & where you’re losing money”
- “Entrepreneurial Bookkeeping 101: New Business Checklist”
- “100+ Work-from-home tax deductions you need to know”