The spirit of Independence Day is a time to honor the freedom achieved by our country, allowing our citizens to govern themselves and empowering them to make decisions to shape their future. Similarly, financial independence liberates individuals from the constraints that finances can impose. During July, we dedicate awareness to Financial Independence Awareness as it empowers individuals to take charge of their financial prospects, make autonomous decisions, and strive for self-financial reliance.
Financial Independence allows individuals to control their finances, thereby reducing stress that can occur as a result associated with poor finances. It fosters personal growth and opens avenues for opportunities. Limitless doors are opened with financial freedom, allowing you to pursue passions, take risks and explore career paths. Whether it is starting a business or planning a vacation, financial independence enables you to live on your terms. Another aspect of financial independence is preparation for the future. Whether it is near or far, retirement readiness is crucial. By actively working on financial independence, you are laying a foundation for your retirement years. Saving and investing now can help you ensure financial security and a fulfilling retirement. Financial independence emphasizes the importance of managing debt efficiently. Encouraging individuals to pay off high-interest debt, create a budget, and develop responsible spending habits. By reducing and eliminating debts you will have more resources to invest, save, and pursue goals.
How to Participate in Financial Independence Month
Setting Specific Goals
Creating a plan to buy a new house, a car, or retire is a great place to begin setting goals. First, begin to evaluate your current financial status by reviewing your income, expenses, debts, savings, and investments. Identifying areas that need improvement can start to shape your financial goals.
Create a Budget
Budget creation is another crucial step that goes hand in hand with goal setting. Making sure you have the resources to pay bills and save effectively is a great way to support your goals. Track your income and expenses to ensure you allocate funds towards savings and investments. It provides a benchmark to help you prioritize and evaluate your goals. To avoid being overwhelmed with this step, go online to a financial calculator to assist you.
Eliminate Debt
Eliminating your debt begins with a plan to tackle any outstanding debts. Prioritize paying off high-interest debts such as credit card balances or personal loans. To avoid high-interest debt rates, pay off credit card balances monthly to avoid additional fees and outstanding balances. If you are looking for a credit card with low rates, no balance transfer fees, and cash back every month, look no further than the iSAVE Credit Card. It checks all of those boxes!
Save and Invest
Set up a systematic savings plan by enabling automatic deposits into your savings account. Automated savings is a great way to save money because if you don’t have to think about putting money into savings, you won’t think about spending it. Consider contributing to retirement accounts, such as a 401(k) or Individual Retirement Account (IRA). Additionally, if your employer offers a retirement plan with a matching contribution benefit, take the free money! To save further, investigate our iSAVE Savings program, offering rates well above the national average savings rate. This account is a high-yielding account that can be used for everyday money, and for your varying saving goals!
Protect Your Identity
Protecting your identity is crucial. Not only is having your identity compromised a general safety issue, but it can also impact your credit score. Your credit score is critical to your financial health. It influences loan rates, car insurance, life insurance premiums, and even getting a job. To protect yourself and your finances, check your credit score regularly. Fraud-committing thieves can steal names, social security numbers, birth dates, banking information, and credit card numbers. If this information is stolen, it can affect your ability to achieve financial independence. To prevent a hindrance to your financial independence and protect your identity, sign up for fraud alerts and investigate identity and credit monitoring services.
July serves as a reminder of the freedom we have as individuals. The celebration of Financial Independence Month prompts you to evaluate your financial well-being and take steps toward achieving financial independence. By focusing on areas of budgeting, debt management, savings, and investments, we can make significant progress in building a secure and prosperous future. Embrace this opportunity to empower yourself financially, break free from debt, and work toward a life that fulfills your needs.
