A new year brings a fresh beginning! Here are 10 steps on your path to financial independence.. The start of a new year is the perfect time to take control of your finances and build the future you deserve, so choose even one or two steps from this list and begin today!
Save
Saving gives us financial freedom: the ability to fulfill a dream, purchase what we want, and handle unexpected expenses with greater confidence. It’s important to save in preparation for major future costs (like education or significant life events) or changes in income, without falling into debt. When we save, we set aside something small today to make tomorrow easier.
Say No to Loans
Do you have an overdraft at the bank? You’re not alone! A Paamonim survey revealed that one in three people took out a loan in the past year, primarily to cover bank overdrafts. Loans have become a widespread challenge, with broadcasts, advertisements, and text messages constantly urging us to mortgage our future for the present. Before taking out a loan, ask yourself whether you truly need it.
Negotiate
Don’t accept as unchangeable fate the bank fees, interest rates, and deposit terms, the prices we pay to cable, satellite, cellular, or internet providers, insurance management fees, or the price a seller quotes when you’re buying an appliance. Don’t be shy! Negotiate and you can save hundreds this way each year.
Check Transaction Details
Verify when a promotion ends, ask whether the price includes installation or delivery, and check if a coupon offers discounts on weekends too. Find out the cancellation terms for the transaction or the possibility of returning the product before you rush to make a purchase.
Compare
Shop smart by going out equipped with a prepared list. Check the cost of your weekly grocery basket at several stores in your area. Don’t automatically go to the expensive neighborhood convenience store out of habit. Compare the meter reading on your electricity, water, and gas bills to the actual number on your meter.
Open letters and emails
Open the messages from your pension fund, the bank, and the letters from your provident fund and continuing education fund, whether they arrive by mail or email. About half of us don’t read the bills that come our way. Many of us ignore bills because they’re not understandable. If you open them, you’ll understand. Those who do check their bills discover overcharges each year totaling an unbelievable amount.
Ask Questions
When the bank representative tells you about prime-linked rates, adjustable interest, account frameworks, and various financial terms that you don’t understand, ask questions. Being aware of your bank account status, properly managing your account, and making wise use of different payment methods will help you avoid overdrafts. Understanding banking services will help you manage your bank account wisely.
Ignore “Special Offers”
When you see a sign for a sale, end of season, or special discount and pull out your wallet, have you checked the product’s true price? Have you found out how much the product costs elsewhere without the “special offer”? Have you bought a “value pack” at a higher price and then thrown it away because you couldn’t finish everything? Be smart consumers, because shopping and purchasing products isn’t an experience or form of entertainment.
Don’t Waste
According to environmental ministry data, about half of waste consists of perfectly good food. We tend to throw away products whose expiration date is approaching, half-finished food containers, or food that children have grown tired of eating. Instead of throwing it away, buy less. How much food are you wasting?
Check your funds
What funds and benefits are you entitled to? Perhaps you’re owed a tax refund from the tax authority? Maybe there’s a continuing education fund from a workplace you left years ago? Organize that pile of documents and check whether money is waiting for you.
Important to Remember
On the path to financial independence, you need to address two sides: reducing expenses on one hand and increasing income on the other. Some people increase income because cutting expenses wasn’t enough to reach budget balance, while others decide to increase income to avoid compromising their standard of living through too many cutbacks. Either way, increasing income is definitely worth considering on your journey to independence.