When you think about financial independence and making your way toward being a self-made millionaire, there are certain hurdles you must overcome. For example, think about the FIRE (financial independence, retire early) method of reaching your goals, one of the major concepts is erasing any non-mortgage debt. If you’re currently swimming in credit card bills and other liabilities, you need to clear these up before you can continue your journey toward millions.
Debt Consolidation Loans
These aren’t for everyone. If you have a smaller amount of debt, you’re better off just paying it down as much as you can each month. However, larger amounts of debt tend to just collect interest each month, and oftentimes, the interest is more than the payments you make, leading to a vicious cycle where you never get ahead. This is where a debt consolidation loan can help you get expenses back under control and finally eliminate them once and for all.
What Is Debt Consolidation?
Debt consolidation is taking either all or the majority of non-mortgage debt and combining it into a single monthly payment. You knock off the interest faster because you’re exchanging varying rates for a single, often lower rate. The monthly payment is a lump sum, which may seem larger at first glance, but it’s usually more affordable than having multiple bills. Remember, you’re only being charged interest once, instead of multiple times on varying balances and you’re only making one payment instead of several. A calculator can help you see how much you’ll be saving by consolidating your debt, which, in turn, frees up more money for you to save and/or invest.
Tiffany funding helps with consolidation by cutting your monthly payments by up to 50%, which, depending on your level of debt, could be significant.
Work Side Jobs
Even if you have a full-time job, sometimes it’s necessary to take on a side gig. The good thing is this doesn’t have to be a part-time job outside the home. For example, you could take on freelancing in your field of expertise. There’s always a need for content on various websites, so if you have strong writing or editing skills, you can always find work.
Other side gigs include putting your crafty talents to use. There’s a way to make money by simply selling your crafts in your spare time. Set up an account on Etsy or use the Facebook marketplace to reach local buyers in your immediate area. You can even set up a website and sell nationally or globally, the sky truly is the limit. And, who knows, maybe one of your side gigs will eventually lead to a full-time revenue stream, getting you that much closer to your dream goals of financial independence.
Pinch Those Pennies
For most people, it’s possible to pay down debts quicker by pinching pennies. We don’t mean cutting out your daily coffee, because, let’s face it — for some, that’s the only indulgence they have. But, finding ways to cut costs on utilities, such as cable and electricity can really yield some savings. Then, instead of thinking of this as free money, you can turn around and apply it to a credit card that has a high interest rate, or to a bill that you’re paying down. Some people may have to get creative, but there are plenty of ways to do it. Look into electricity suppliers or even consider going solar — many companies will install the panels for free and pass on part of the savings to you.
Getting to the point where you’re thriving financially can take some work, but it’s not impossible and it’s all worth it in the end. Companies like Tiffany Funding can help cut down your debt payments and get ahead quicker than ever before, and taking on a side gig can give you additional revenue to pay down debts and eventually save up and invest. No matter which avenue you take, the finish line is just up ahead so keep trekking and then enjoy every bit of your financial freedom!