Achieving Financial Freedom

1. Review your personal budget and identify areas to trim

The first step towards financial freedom will always be spending less than you earn.

While this does sound easy enough, in practice it can often be hard to do. It all comes back to having the right mindset and keeping yourself in check.

One of the simplest ways to do this is to use the “pay yourself first” method. This is where you set aside money each payday into a savings account by automatic transfer.

2. Refine your processes to ensure you get paid faster

Take time at the end of the year to review all your processes to see if they can be fine tuned to increase the rate of which you get paid.

Having an efficient process ensures you will be paid on time which is key in maintaining a healthy cashflow and is how a business survives and grows.

Find out more and get our tips for getting paid faster here.

3. Get ahead of your debt

Getting out of debt can be a struggle both mentally and financially.

That’s why it’s vital to have a plan to make yourself debt free.

If you have several loans to repay, focus on repaying a single debt while keeping the rest at the minimum payment.

Pay off the highest interest rate first, then rinse and repeat until you’ve paid them all off.

4. Safety Net

Having an emergency fund safety net can be a lifesaver when you face unexpected events such as job loss, illness or unforeseen bills in your business.

Ideally your emergency fund should be the equivalent of around three months’ living expenses.

Not only is this a smart move financially, it also gives you peace of mind that if the unthinkable happens, you and your business have time to get back on your feet.

5. Review and minimise expenses

While you should be doing it all year, now is a great time to review your expenses for the year and see where you can minimise expenses as a whole.

Identifying wasteful expenses may require you to think outside the box and be open to an idea of changing the way you do things.

It is key to remember that cutting costs is good, but it’s also a balancing act.

Make sure you continue to invest in things like training and new product development as they are key for the long-term health of your business.

The team at DNACA are well qualified to help you put processes in place for both your business and personal goals to ensure you are on the right path to achieving financial freedom. Get in touch with us today and learn more about the ways we can help.