The Price Of Independence
July 4, 2009 by Tisa Silver
Filed under Finance
Independence doesn’t come cheap.
Sometimes we take independence for granted because we have always had it, but it can be taken away. The tough economy has caused many people to learn about, and live through the loss of financial independence.
Photo by ralphunden, courtesy of flickr
Here are some basic steps to help you along the way to financial independence:
1. Get out of debt - Paying the minimum is not going to get you there. Attack the balances with the highest rates first and after you have paid them off, avoid situations that will tempt you to run them back up.
2. Save for a rainy day – Keeping cash on hand can help you stay out of debt. Setting up an automatic withdrawal can help you work around the temptation to spend money as soon as you get it.
3. Be prepared for the worst – Losing a job, suffering an illness or being involved in an accident can all jeopardize your financial independence. Having the proper insurance can lessen the blow of unexpected unfortunate events. Examine your existing policies and if there are gaps, perhaps you should explore supplemental insurance.
4. Draft a budget – Your budget may not be airtight, but planning ahead can help you curb impulsive spending and thus avoid getting into debt.
Whether it is freedom from debt or dictatorship or freedom from addiction or abuse, remember that freedom is not free. Independence is a product of sacrifice! Happy Independence Day!
Freedom is nothing but a chance to be better. ~ Albert Camus
