Fortunately, some millennials have realized how important their financial future is and are rectifying their mistakes.
Mr. Money Mustache has created an early retirement blog to give Millennials ideas to create a pathway to financial independence. It works for anyone else who is listening to dig themselves out of debt.
Mr. Money Mustache (Peter Adeney) presents thrift as liberation rather than deprivation and some millennials are taking notice.
Individuals that follow the advice given entirely revamp their spending habits and within a short while can overcome their debt and on the road to financial independence. Their savings jump up from 0-60 percent within months.
The question is, how do they do it? Below we go through some steps millennials are using to discover financial freedom;
Separating Hard And Soft Expenses
Hard expenses are expenses that are unavoidable such as rent, food, clothing medicine e.t.c. Soft expenses are expenses that one can go without such as cable tv, lavish dinner parties, designer clothes e.t.c.
Mr. Money Mustache advises that to get out of debt, you should get rid of all soft expenses and minimize your hard costs. So if you spend your money eating out think of buying food and start cooking at home and see how much money you’ll be saving.
Look at your insurance plans and switch to a lesser expensive but more critical plan. The lower the premiums you pay monthly, the more your debt comes down.
Create A Debt Repayment Plan
After coming up with an affordable mortgage/rent payment plan, you will be left with loan repayment expenses as the biggest headache. Any surplus you get in your monthly income should be used to offset your debt.
Ensure that you cover your monthly expenses and anything extra should be used to reduce your loans. Within a few months, you will start getting reprieve that instead of adding more debt, you’ll be reducing your debt and after a while, you’ll emerge debt free.
Continue Living A Frugal Life
Even after eliminating all debt, do not start accruing more. Lead a frugal lifestyle that will see you save four times your income and focus on early retirement.
Start investing and putting away money and within a few years; you’ll have saved enough to retire early and do what you always wanted to do without any financial difficulty!