How to Achieve Financial Independence in 3 Simple Steps

The following article is a guest post.
For all the talk of an impending financial crisis in the UK, the region’s economy continues to showcase a tremendously robust nature. Visa reported an impressive 2.4% increase in consumer spending during October, for example, while disposable income levels have also remained steady despite the decidedly negative perception of the economy as a whole. While disposable income levels may fall next year as the Brexit vote begins to wreak havoc, this is only to be expected in such a volatile and uncertain climate.
How to Achieve Financial Independence in the Current Climate
Perhaps more of a concern is the average consumer’s approach to spending during times of perceived hardship, as this betrays an unwillingness to save disposable income and build for the future. This can be extremely debilitating in an unstable economy, as it may leave many ill-equipped to cope in the face of a recession or sudden decline in fortunes. With this in mind, here are three, simple steps that will help you to achieve financial independence:

1. Seek Out Expert Planning and Investment Advice
Whether you have knowledge of the financial market or are new to the concepts of investment and saving, it is prudent to seek out expert financial advice wherever possible. This will enable you to tailor a financial plan of action to suit your precise needs, both in terms of your existing wealth and your underlying appetite for risk.
When looking for a trusted advisor, it may be worth seeking out potential partners that have experience in both core financial planning and investment management. Service providers such as Tilney are available to help you to create a detailed plan going forward, while minimising the overall cost to you as an individual.

2. Make Saving Your Key Watchword
We have already touched on the importance of saving, but you should never underestimate how crucial this is to achieving long-term, financial independence. Without a willingness or ability to save, you will be unable to build any semblance of wealth either in short-term accounts or pension plans. So while seeking out advice and comparing the real-time market will enable you to identify the most suitable savings and investment vehicles for you, it is your foresight and awareness that must compel you to save a fixed percentage of your disposable income in the first place. By aiming to save a minimum of 10% of your disposable income each month, you can quickly build a burgeoning nest egg for your short and long-term future.

3. Constantly Review Your Strategies and Progress
The figure of 10% is arbitrary, of course, and subject to change in line with your goals and earning potential. It may also change over time, as you look to constantly review your savings strategies and the progress that you are making in terms of financial gains. This proactive approach not only ensures that your investments are tailored to suit the prevailing economic climate, but it also means that you can save as much as possible towards securing your independence.

You can review your goals quarterly, annually or as often as you please, depending primarily on the nature of your investments. The main thing to remember is that these reviews are conducted at least annually and lead to informed decision-making.

5 Tips For Starting To Save Money Right Now

Save MoneyFor lots of people saving money may appear to be a hopeless task. They try and try to save money but struggle to consistently put money into their bank account. Failing to save money can often occur because you have so many other things to do on a daily basis. The key to saving money is to make it as easy as possible to do. Here are a few tips that will help you start saving some cash right now.

Save a little at a time
You don’t have to start with some grandiose savings goals in order to save money. Saving small amounts of money is actually a whole lot easier than saving a lot of money at one time. You can schedule small amounts like $20 to $30 a week to start building up your savings account. You won’t miss the money and these tiny deposits can add up over time.

Make saving money easier
You always want to make saving money as easy as possible for yourself. Take the burden of having to remember when and how much to save by doing it automatically. Schedule automatic transfers from your checking account and automatic deductions from your paycheck right into your savings account. After a month or two, you will get used to this amount of money being deducted from your account every month.

Make withdrawing money difficult
While you want to make saving money easy, you want to make withdrawing money a real pain. Resist the urge to withdraw by not getting an ATM card for your account. This will force you to go into the bank during banking hours whenever you need to take out some money. Also, place your savings at a bank that is inconvenient to get to. This will keep you from making frequent trips to your banks to withdraw your money.

Get a side job
If your reason for not saving money is that you simply do not have enough cash, you should get a side job. Side jobs are great at providing a side income. Find something that you are passionate about and would enjoy doing for money. You can designate this income for the sole purpose of funding your savings account. A few hours a week working on the side can grow into large savings account deposits.

Use your spare change
Sometimes the best solutions to problems are the ones that you learned in your youth. Remember having a piggy bank in your room that you would store all of your spare change in. You would fill the piggy bank up with coins until it couldn’t hold anymore. You can do the same thing as an adult. Store all of your spare change in a piggy bank and take it to the bank when it gets full. Deposit all of your change into your savings account and repeat this on a monthly basis.

Saving money does not have to be as hard as you thought. Apply these simple tips and you will be on your way to building up a savings account.