Achieving financial independence is a goal that many people strive for. It means being able to support yourself financially without having to rely on a job or other sources of income. While it may seem like a daunting task, there are steps you can take to achieve financial independence.
First, make a plan. Start by assessing your current financial situation. How much debt do you have? What are your monthly expenses? What are your income sources? This will help you understand where you are and where you want to be.
Next, set financial goals. What does financial independence mean to you? Do you want to retire early? Do you want to be able to travel the world? Whatever your goals, make sure they are specific, measurable, achievable, relevant, and time-bound (SMART).
Third, create a budget. A budget is a plan that outlines how you will spend and save your money. It will help you track your expenses and ensure that you are spending and saving wisely.
Fourth, increase your income. One of the best ways to achieve financial independence is to increase your income. This could mean taking on a higher paying job, starting a side hustle, or investing in assets that generate passive income.
Finally, be disciplined and consistent. Achieving financial independence takes time and effort. It’s important to stay committed to your plan and make smart financial decisions every day.
Achieving financial independence is possible. By making a plan, setting goals, creating a budget, increasing your income, and being disciplined, you can take control of your finances and achieve the financial independence you desire.
If you’re struggling with debt, it can feel overwhelming and daunting to think about how to get out of it. But there are steps you can take to get out of debt quickly and effectively.
First, make a plan. Sit down and assess your situation. How much debt do you have? What are your monthly expenses? What are your income sources? This will help you understand your financial situation and determine a plan of action.
Next, prioritize your debts. Start by paying off your high-interest debts first, as these will cost you the most in the long run. This might mean making minimum payments on your other debts while putting as much as you can toward the high-interest ones.
Third, cut back on your expenses. Look for areas where you can save money, such as reducing your grocery bill, cutting out unnecessary expenses, or finding ways to reduce your monthly bills. Every little bit helps, and the money you save can be put toward paying off your debt.
Fourth, increase your income. Consider taking on a part-time job, selling items you no longer need, or finding other ways to bring in additional income. This can help you pay off your debts faster.
Finally, stay motivated and on track. It can be easy to lose steam when you’re trying to get out of debt, but it’s important to stay focused and committed to your plan. Consider enlisting the help of a financial advisor or debt counselor who can help you stay on track and provide support and guidance.
Getting out of debt isn’t easy, but it’s possible. By making a plan, prioritizing your debts, cutting back on expenses, increasing your income, and staying motivated, you can get out of debt fast and take control of your finances.
We invest $1000 every 2 weeks into Denise’s stock market portfolio via Sharesies which is based in New Zealand. We can invest into NZ, Australian or US stocks, index funds or ETF’s but we choose to use this strictly for New Zealand shares.
We started doing this 31 fortnights ago (just over a year) so in theory it should have had a balance of at least $31k however due to market conditions this dropped substantially and we down $4k !
Thankfully all is not lost, and the market is rebounding and after a bit of time the portfolio is sitting at approximately $29800 – so a total loss of only $1.2K !
Given the way this year has gone it “should” be back to break even by the end of the year and we’ll be back to square one however the bonus will then be that the portfolio can actually earn real dividend income on the total balance. We will continue to invest into this portfolio at a rate of $1000 per fortnight ($500 per week) until it reaches $100k total balance.
Check out our YouTube channel (www.youtube.com/ProjectFrugal) for the “Road To 100k” series to see how it continues to perform (or not perform as the case may be!) …
Patience is required. Investing is a marathon and not a sprint! 🙂
So as the market continues to move in a downwards direction I felt it was high time to get in a few extra supplies “just in case”. This is what I purchased from our usual shopping haunts (Prices are in NZD):
9 * 1.5L Sugar Free (Ninety Nine Brand) Lemonade @ $1 each
8 * 5 Packs Choice Beef Or Oriental Noodles @ $2 each (Used to be $1.60 not so long back)
36 * Tinned Countdown/Woolworths Brand Baked Beans @ 0.90c each (Used to be 0.80c not so long back)
Pack N Save
24 * Tinned chopped tomatoes (Value brand) @ 0.69c each
3 * Penne Pasta (500g) @ 0.99c each (We also have another 20 or packets in rotating storage)
Summary: These are things we normally buy and are at a great price. Apart from the frozen chips, the rest of the food will last 2+ years. I also purchased some other bargains and filled up the petrol tank as well. If everything shut down tomorrow this would feed a family of four for about a month. Admittedly it’s not the greatest food in the world, but we normally combine these ingredients with other items to produce tasty meals that have a reasonable nutritional content and is not hard on the wallet.
Meatless no-frills tomato pasta or baked beans with noodles anyone? 🙂
So after another poor week in investing it feels like a downward spiral. Every day seems to lose hundreds of dollars from our portfolio but rest assured – if it’s impacting us, then it’s probably impacting you as well. Cold comfort, but there are opportunities to invest more money now. Eventually the market will recover but nobody knows when that may occur – and when it does I’ll know I’ve done everything I can to bolster our investments. The rich have an advantage during downturns – they hold their money and when the time is right they swoop in, buying low.
Once the market recovers, they’re the ones who make the biggest profits. Unfortunately unless you’ve got the capital and you’re a retail investor like us, then you’re totally at the mercy of the markets.
Hold your nerve, keep investing, because one of these days the sun is going to shine again! 🙂
We started investing seriously in April 2018 and literally started off with $20. As our finances slowly improved I was able to invest more and more as our debt decreased and while interest rates were low everything was coming up roses and looking positive and then …. Covid hit!
Markets dropped and recoiled which was quickly followed by a reasonably quick market recovery. Unfortunately production was limited due to various government policies and led to job losses and businesses having to close up or scale back. Examples in New Zealand are obviously retail, tourism and hospitality.
Governments around the world turned to printing money to keep their economies afloat which has now led to massive inflation and interest rates rises. House prices have now hit the wall and most people are going backwards financially. Bring in a war between Russia and Ukraine and all of a sudden you’ve got increased oil prices which increases the cost of most goods and services and businesses having to raise prices in order to survive.
In terms of investments? Well we had a good run from 2019 through to 2021 while interest rates were low but now the chickens have come home to roost so to speak. Here’s our current investment income gains/losses for each calendar year in the last 4 years since we started tracking this:
Obviously 2022 has been a bit of a shocker not for just ourselves but pretty much most people on the planet. Unfortunately no one can predict the market and in some years you will make less than you put in but history has proven that overall you should be receiving a return of between 8 – 10% over the long term (assuming you invest into the stock market).
Our goal is to build this amount up so it at the very least it covers our expenses. This is not a quick 5 minute solution however and requires commitment, time, sacrifice and hard work in order to achieve the goal. Once that goal has been reached we are then in a position to re-evaluate what we want to do next (i.e. work part time, quit working, do something else) or whatever that might look like. It may be very carry on working full time but we will have more options at that point. People generally are good at burying their heads in the sand when it comes to financial matters and worry about it later. The funny thing is eventually that later turns up and retirement stares them in the face.
We are still investing and will continue to invest in the meantime. Utilizing dollar cost averaging means even as the market is going down we are still able to buy stocks and investments at a lower price. With Covid restrictions starting to ease and an eventual end to the Russia/Ukraine conflict there will some kind of return to “normal”. They’ll call it a new normal but it reality life moves on regardless. Think of Germany back in 1939 and the impact of that on neighbouring countries at the time. Of course that dragged on for a number of years. Not ideal!
So here we are in 2022 with the markets looking unfavourable, rising interest rates, rising inflation, and investment balances crumbling. What to do?
Here’s what we’re going to do:
1). Not panic …
2). Get some more supplies (e.g. Canned food, dried food) that can be stored long term in case things get even worse – it’s better to be prepared that not be prepared …
3). Keep investing!
So, keep you head up, come up with a plan, live frugally and make smart financial and life decisions !
