The ongoing coronavirus pandemic has shaken the global economy, leading to skyrocketing unemployment and reductions in income. According to a recent survey published by Statista, the average American has been negatively impacted by the pandemic. On a scale of 1 to 10 (with 1 being no impact and 10 being severely impacted), the average level of the pandemic’s impact on respondents’ personal finances was 5.2.
Meanwhile, 61% of young Americans say they’re stressed by the state of their finances and believe the pandemic has severely “derailed their journey to financial independence,” according to TD Ameritrade’s latest Financial Independence Survey.
Even with many countries reopening their economies and providing aid to struggling sectors, the economic uncertainty caused by the pandemic is likely to extend into the foreseeable future.
Given these dire circumstances, wouldn’t it be great to have a financial safety net to safeguard you and your loved ones’ future?
Picture this: your ability to meet your family’s basic needs isn’t threatened by a recession. A medical emergency won’t leave you drowning in debt, and the financial impact of unemployment is cushioned by other streams of income.
These positive scenarios are made possible when you have financial freedom.
The first step to financial freedom is identifying your financial goals. Do you want to earn an X amount of money each year to afford a certain lifestyle? Do you want to save for a house, a car, a vacation, or retirement?
In your pursuit of financial freedom, it helps to view money from a proper perspective. Drop the view that money is something you simply need to pay the bills and afford the lifestyle and things that you want. Instead, look at money as an instrument that can better your life and the lives of others. When handled wisely, it can fund your dreams and uplift others.
A string of tactical decisions to increase your income, working towards improving your financial literacy, and sticking closely to a budget and savings plan are just some of the building blocks that will lead to financial freedom—regardless of the state of the economy or the world. The end result is the comfortable, worry-free life that you deserve.