Despite official figures indicating a steady rate of economic growth in the US over the past decade, for far too many American families, financial freedom is farther from their reach than ever before. Financial exclusion is the new reality for millions of people for whom buying a home or attending college has become a mere fantasy. However, if you’ve read this far, you’ve already taken the first step toward financial freedom – you’ve acted on your impulse to break the broke cycle.
Let’s outline some essential tips for families looking to break this negative monetary cycle:
Start Small
It sounds counter-intuitive, but small, interest-free loans are making the American Dream a possibility again. A growing number of NFP or charitable institutions are offering low-interest, or interest-free loans for lower income families that can provide access to much-needed capital to achieve goals, such as paying for college and starting a new business.
Roadmap to Success
Start yourself on the road to financial improvement by building a roadmap to reach your goals. It’s crucial to have tangible, achievable goals in mind when planning out your pathway to stability, as well as clear strategies to help you reach them. Keep in mind that like any well-constructed plan, things can and will go wrong, so make sure you have back-ups prepared for when life’s obstacles arise.
Business to the side
If you’re cash-strapped, it may be a wise move to look at ways to generate additional income to supplement your regular employment. There are plenty of homegrown side businesses that can augment your primary income, and the internet is making it easy with a proliferation of websites allowing people to offer their freelance services to potential clients all over the world. You could even find that you’re earning more than your regular day job, like making a YouTube channel or crowdfunding.
Youthful saving
If you have children, start their financial education early by establishing a bank account in their names, so they can to learn how to save. It encourages them to put more money in their savings account than they draw. Unfortunately, 53% of children don’t have a bank account by the age of 15. These kids are missing out on monetary learning opportunities while their still young enough to make healthy financial habits ingrained, setting them up for a lifetime of stability.
Scholarships Pay Off
Additionally, if your growing child is thinking about attending college, but the astronomical fees have you breaking out in a cold sweat, encourage them to apply for as many scholarships as they can to help with college fees. No child should miss out on a college education due to lack of funds, and nor should they be lumped with hundreds of thousands in student debt before they’ve even graduated.
Pay Bills on Time
If you’re serious about turning your finances around permanently, concentrate on turning your credit score around. You can see an uptick in your score in as little as six months by making your payments on or before their due dates of each cycle. If that happens in six months, imagine what your FICO score might look like in a few years.
Work on trying each one of the above-recommended tips at a time. If you’ve tried all these tips and you’re no further along, you’re doing something wrong. Consult a professional financial expert to help you get started on the right path!
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