When you are living paycheck to paycheck, financial freedom and security can seem like an impossible cliff. How are you supposed to pay down debt when it seems like every time you turn around something is costing you yet more of your hard-earned cash?
Here are three (3) ways to avoid stress and fatigue while you work toward your financial goals.
- Worry about one goal at a time. Viewing all of the steps and milestones for financial freedom can be daunting. Few people are debt-free, have healthy emergency savings, and are actively building their retirement. But it is possible to climb the cliff if you focus on one handhold at a time. So, take a deep breath and set your sights on the next step.
- Aim to pay off smaller debts first. Smaller debts make great baby steps toward tackling more substantial obligations. Because it is a lot faster to pay off $500 than it is to pay of $1,500. You might even be able to find ways to earn some extra cash to provide a couple of extra payments. And once that initial debit is paid down (huzzah!) you can roll that money into chipping away at your next largest debt.
- Focus on building good financial habits. Just as it is not good to get hung up on what it takes to gain financial freedom, it is also not a good idea to change your entire lifestyle in one fell swoop. Implement a couple of habits at a time. For instance, try to decrease your trips to the grocery store, brewing your coffee at home, or paying only in cash.
Working toward your financial goals can be a long and often stressful endeavor. But dialing back expectations and adjusting your overall outlook can help you avoid fatigue in your journey. Following these three steps can help you reach your goals while helping guide you through the process.