• James Robinson
  • How to Attain and Keep Financial Freedom with a Full House
How to Attain and Keep Financial Freedom with a Full House
Contributor
Written by
James Robinson
November 2019
Contributor
Written by
James Robinson
November 2019

There has been lots of conversation online about your money situation. There are countless people on the internet who claim to teach you how to make a six-figure living while relaxing on the beach. The truth is that while you can learn skills that are valuable. The money that you bring in is not as important as the amount of money that you lose. If tried fill a bucket full of water that had holes in it, you will always run out of money. Your finances are like the bucket and your income is like the water and the holes in the bucket are like your spending. You could make 100 million dollars a year, but if you spend 200 million a year then it doesn’t matter how much you make. It is a simple principle, but we are quick to relate wealth to earning and not to saving which is where the true wealth is earned.

 

Plug the leaks

Life can quickly get expensive with lots of kids, they have school, soccer practice, school activities and maybe even gas money. It is very difficult to keep track of all the money when you have it going so many places. It is crucial to find out where every dollar is going, have a thorough analysis of where all your money is going. Find out where water is leaking out in places where you could do without. Things like magazine subscriptions, spending money on video games, eating out at restaurants, cable tv, gym memberships, the list could go on and on. As you start to track where your money goes, you can see where those holes are in your bucket.

 

Shrink the Flow of Some Leaks

It is impossible to plug every leak in the bucket. As people we have to spend money, we need places to live, food to eat, clothes to wear, and transportation. There are some ways though that these fixed expenses can be reduced. Reach out to your landlord and offer to do some repairs or upkeep around the building for a discount on the rent. Call your internet company an tell them you are planning to switch to a different provider because their rates are competitive, they will probably keep your price low. Evaluate your insurance coverage, look if you truly need all the things covered that you are paying for. Is there public transportation that could take your relatively close to your place of work? There is real danger of your pride and ego getting in the way. If you are unwilling to make the changes needed and maybe look a little less wealthy for a time, you will likely be actually poor long term.

 

Save and Repair

If you were in debt, likely some damage has been done to your credit and your savings. Experts like Dave Ramsey recommend having $1,000 set aside in cash on hand at your home for emergencies. Emergencies do not include a sale at the mall. An emergency would include your child crashing on their bike and needs a cast on their arm. Have a certain amount of money set aside in case of an emergency. This way emergencies don’t throw a wrench in your plans.

Because of your debt, your credit is almost guaranteed to be damaged. There are lots of different options to improve your credit. There are lots of companies that offer credit building services. One of the most effective ways you can go about it, oddly enough, is starting a business. Let me explain. You don’t necessarily need to offer a product or service. You just start an LLC. With an LLC opened, you can open a business bank account. Businesses can have a credit score too. The standard for a good business credit score is different than for an individual. You can essentially start over with a new credit score at least while your personal one is being fixed.

Prepare for the future

You and your spouse probably want to retire one day, right? You want your children to go to college, someday right? Do you want to have more children possibly? These are all things that take money and are very common desires for families. In conclusion, the way to keep your family financially free is be on top of your spending and be careful of your savings. Making extra money is nice. The thing that will keep your family safe and comfortable is your ability to save and be comfortable living within your means.

Let's be friends

The Women Behind She Writes

461 articles
12 articles

Featured Members (7)

123 articles
387 articles
54 articles
60 articles

Featured Groups (7)

Trending Articles

  • What Makes a NaNo Winner?
  • Writing is a Humiliation Banquet--And Book Promotion...
  • Small changes to your beauty routine that will benefit...
  • Outline or No Outline?
  • The Ultimate Guide to a Perfect Sydney Itinerary
  • Why Is Sales & Negotiation Training for Managers a...

Comments
No comments yet