These are the three important things women say will signal financial independence

While the idea of ​​financial freedom can mean different things to different people, A recent report by Bank of America Many women say the top three areas indicate financial independence.

To get the results, more than 3,500 women aged 22 and older were surveyed about their views on financial confidence, especially when it comes to investing.

Here’s a look at the top three indicators of financial independence, according to survey respondents, as well as some handy tips to help you meet those goals.

For starters, 47% of respondents felt that debt free was a great indicator of financial independence.

Whereas some forms of debt – such as a mortgage either student loan The flexibility to be able to buy you an opportunity or acquire a property may, for many people, be enough to actually create a sense of dread because of money. there are a lot of people emotionally uncomfortable with debtAnd those feelings of restlessness are reason enough to prioritize missing their balance.

Paying off the loan also gives you a little more flexibility in the face of difficult situations. For example, if your credit card limit was $5,000 and you had a $4,500 balance, you would only have $500 left to float the cost of an unexpected car repair or roof leak if you didn’t have one. emergency fund draw from If, however, you pay off that balance, you’ll have more room to cover an essential expense if your emergency fund won’t be enough.

There are many strategies when it comes to pay off debt, Famous Debt Snowball Method This involves eliminating the smallest loan balance first while making only the minimum payment on your other loans. The idea is that you work your way up to the largest balance possible until you are completely debt free.

one more trick, debt avalanche methodOthers involve eliminating your highest interest debt first, while paying the minimum, and working your way up to the loan with the lowest interest rate. This exclusive method will help you save the most on interest charges.

debt consolidation There’s another strategy that can potentially help you save on interest charges while still settling your loan into just one monthly payment. With this option, you essentially have a . are using it debt consolidation loanlike Marcus by Goldman Sachs Personal Loan either Lightstream Personal Loan, to send your funds to each of your creditors to pay off those balances. After that point, you’ve given up paying back the debt consolidation loan you took out.

Another option a. have to use Balance Transfer Card with 0% Introductory APR Periodlike Citi® Diamond Preferred® Card which has a 0% intro APR on balance transfers for 21 months from the date of first transfer (variable 15.24% – 25.24% thereafter; all transfers must be completed within the first 4 months) or Chase Freedom Unlimited®, which has a 0% intro APR for 15 months from account opening on balance transfer, then a variable APR of 15.74% – 24.49% for transferring credit card balances to a new credit card with a higher interest rate Which does not charge any interest charges for a limited time. The idea is that the 0% introductory APR period will give you enough time to make your entire monthly payment go toward the balance, not just the interest, which should help you pay off your debt faster.

gang up emergency fund – A lump sum amount of cash that you can access in case of dire need – can help offset these unforeseen expenses. For example, you can use money deposited in an emergency fund to replace a damaged car part, fix a leaky roof or pay a medical bill you weren’t planning on.

An emergency fund can also help you meet your needs in case you fired without notice, While unemployment benefits can help you cover some of your daily expenses, those funds are usually not enough to cover your full cost of living.

It’s a good idea to keep your emergency fund in a relatively accessible account, such as Marcus High Yield Online Savings by Goldman Sachs or else associate online savings account, with these high yield savings In the accounts, you will be paid interest on a monthly basis for only having one balance, which will help to grow your emergency fund a little quicker.

Experts generally recommend that you have around . have an emergency fund with three to six months’ worth of living expensesHowever, the amount you should save depends on your individual situation and what your monthly expenses are usually.

rising cost of living, student loan debt And withheld pay This has made it difficult for many to meet everyday expenses – sometimes, they have no choice but to turn to family to bridge the gap between what they need and what they can actually afford. Be able to bridge

While it is generally recommended that you find ways to cut spending to free up cash for other expenses, with a highly inflationary environment, as we are seeing now, for individuals to cut back. There may not be much space, you are already spending more.

If you find yourself hitting a wall with your cash flow, it may be time to consider taking a job or even a pay increase. switching to a higher paying job if you. If you choose to stay with your current company, try taking on a side hustle — preferably one you actually find enjoyable — to help make ends meet.

If you choose to go the crowded route, think about your skills and personal interests and try to find a side gig that works best for you. For example, if you have a habit of creating customized digital images, consider selling them through a website like Etsy.

While working out extra can be exhausting, there are some things you can try to reduce burnout. For one, avoid doing side gigs that force you to use the same skills you’re using for your day job. For example, if you already work full-time as a writer, taking on an additional side as a freelance writer can make it feel like complete writing overload. Consider using any other skills you already have to monetize so that you don’t get too stuck doing the same thing every day.

You should also think about how much time you realistically have to devote to a side hustle each week. If you can only take 15 hours off a week, you will get stressed and if you are pursuing a side gig you will burn out very quickly which is going to feel like just another full time job.

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