How to Make Fourth of July Your Financial Independence Day
NEW YORK, July 6, 2021 (Newswire.com) - We can debate all day whether July 4 really is the United States' Independence Day. Sure, the Second Continental Congress signed the Declaration of Independence on that day in 1776, but the Continental Congress technically voted to approve a resolution declaring the U.S.'s freedom from Great Britain on July 2, 1776.
But, of course, the document explicitly says "all men are created equal," and while it doesn't outright say it, that implies white men. That's why Juneteenth, which marks the day (June 19, 1865) when federal troops arrived in Galveston, Texas, to ensure that all people who remained enslaved were freed—a full two and a half years after the Emancipation Proclamation was signed—is officially known as Juneteenth National Independence Day.
Not to mention, women weren't included in the sequel (work!) until 1920 when the 19th Amendment granted women the right to vote.
Didn't think you'd be getting a history lesson in a personal finance article, did you? Whether you celebrate July 4 as Independence Day or not, you don't need to feel helpless. You can use it as a day to gain your financial freedom, which would surely (maybe?) satisfy the first secretary of the U.S. Treasury: one Alexander Hamilton.
Don't throw away your shot: Take control of your money with a budget
Unless your only job is to marry rich, you're probably going to need to get a hold of your finances sooner or later. Start by spending less than you make. One of the best ways to do that is by creating and sticking to a budget.
There are many budgeting methods, from the 50/30/20 rule to the envelope system—it's just a matter of picking what works best for you. The 50/30/20 rule is one of the more popular methods, and it has you set aside 50% for your needs, 30% for your wants, and 20% for savings and/or paying down your debt.
On top of creating an initial budget, it's important to come back and readjust as needed. See if there are areas where you can cut costs to optimize your savings even further.
Blow us all away: Bump your income
Easier said than done, but increasing your income is a solid way to set you forth on a path to financial independence. U.S. job growth picked up slightly in May with the addition of 559,000 jobs, according to the Labor Department. The June jobs report is expected to show further growth, meaning this could be a good time to pick up a side hustle.
In addition to adding income by adding work, you could try to negotiate for a bonus or raise, sell unwanted belongings, or throw your home on Airbnb (assuming you have extra space or somewhere else to stay).
Increase your savings: That would be enough
The more you can put away in savings, the better off you'll be. Experts recommend saving at least three to six months' worth of expenses in an emergency fund. Keeping that money in a high-yield savings account can help you build your wealth a bit more quickly.
But to really increase your wealth, you'll likely need to invest. Opening a retirement savings account like a 401(k) or IRA can help you build your nest egg. It may take some time to build, but you just have to be willing to wait for it.
Source: Credello
