Deciding to aim for financial independence was a monumental decision. What prompts each individual to make the change in their life depends on their background. For some, mounting student debt forces them to look for a better lifestyle. For others, after years in the rat race they realize there must be a better way.
No matter what has brought you to terms with the fact that reaching financial independence is an attainable goal that can be accomplished through hard work and dedication, there are some simple steps you can take to work toward that end. For starters, you need to focus on avoiding lifestyle inflation.
Never heard of lifestyle inflation? Lifestyle inflation is a term used to describe what often happens when a person’s income increases. For many people who are not focused on achieving financial independence, an increase in income is immediately followed, or in a lot of cases, preceded by, a matching increase in spending. This single action is responsible for so many losing their way on the path toward financial independence. Unfortunately for many, this dangerous habit is taken one step further- spending outpaces income growth. A promising career and wise investment choices will do no good if one is living beyond their means.
If you are trying to continue enjoying life while avoiding lifestyle inflation, you just need to look for alternative outlets for your desires. If you are looking for a bite to eat, try a reasonably priced buffet, rather than a gourmet steak joint. If you need a car, instead of going for broke on a $30k+ new vehicle, try a dependable, used one for $15k or less. Of course, you can take this approach too far and short-change yourself, eating at dives where you will get food sickness and buying a lemon that will cost you thousands in repairs. Do your homework and find the best place near you for eating out and the most dependable used car seller for when you are ready to make that purchase.
There is a great new program that will help you in making wise financial decisions. Groupon has just rolled out its new Business Pages section. Next time you are thinking of going out to eat, check out all of the great features of this new service. In addition to being shown an establishment’s operating hours and contact information, you are given access to the full menu to peruse. Now you do not need to bother going over to a place before making a decision as to whether or not you want to eat there. No need to succumb to the pressure of vampiric wait staff who look at you as their next great tip. To assist you finding the best place to eat, Groupon’s Business Pages also offer customer reviews. You can check out what locals have to say about each establishment before you make up your mind as to whether or not you want to eat there. The best part about this new service is that on top of helping you make up your mind about a new place to eat, it also offers you discounts and coupons. These savings are updated regularly, so once you have decided on your new hot spot, check out that page occasionally to see what coupons best fit your plans.