Money plays a big role in impacting our lives. It not only impacts our financial well-being but also our happiness and sense of security. 

That being said, there are a lot of South Africans that struggle to reach financial freedom. Instead, they are locked in a constant battle with a cycle of financial limitations and stress. In order to regain financial freedom and confidence there are a couple of things you need to do. 

In this article, we take a look at strategies and tools you can use to regain your financial freedom and confidence. 

What is Financial Freedom? 

This means gathering enough wealth, savings and investments included, that will support your ideal lifestyle without relying on your monthly income. It’s the ability to make life choices without financial restrictions. 

What is financial confidence?

You’re sure of the decisions and actions you make, knowing that they will lead to a better financial future. According to studies, financial confidence plays a big role in financial well-being. The reality is that financial confidence is a lifelong process that develops over time. 

Tools to help you become more financially confident:

Educate Yourself

The first thing you need to do is get a basic understanding of personal finance. This means educating yourself on budgeting, saving, and investing. It doesn’t have to cost a thing, as there are many free resources, including podcasts and financial blogs. 

Read: 10 Burning Questions About Being Under Debt Review

Set Financial Goals 

Start by defining what you want to achieve financially. It can start with paying off debt, building an emergency fund or buying something costly. 

Create a Budget

Sit down and write down all your income and expenses. Understanding where your money is going can help you identify all the areas you can cut back or improve on. 

Build an Emergency Fund

Then, start by building your emergency fund. The goal is to have at least three to six months’ worth of living expenses covered. Having this type of cushioning can give you not only piece of mind but also available funds to tap into if anything breaks or an emergency happens. 

Reduce Your Debt

Now, start by paying off your debts. The goal is to start with the high-interest debt such as your credit card. This can already improve your financial stability and take away some financial stress. 

Avoid Compound Interest

One of the big things you want to avoid is compound interest as it can lead to repaying even more, over a longer period of time. Which prolongs the journey towards financial peace. Focus on repayuing your debts quickly and making as many extra payments possible towards your loan principle. Having compound interest attached to your debts can quickly turn it into a challenge to make repayments. 

Read: Money Tips for Every Generation

Review your Finances Regularly

Make it part of your weekly or even monthly habits to check on your financial status. This is a good way to stay informed and make sure you stay on track with your financial goals. It also gives you the opportunity to make some changes or alterations to the plan or your spending as you need to. 

Join a Community 

Start surrounding yourself with people who are also working towards financial confidence. There are a bunch of online forums, groups on social media, and even local community workshops where you can share your experiences with other people in the same circumstances. 

Don’t Let Your Emotions Control Your Finances

Regaining your financial confidence starts with deciding that your emotions won’t be in charge of your finances. No matter how you look at it, there’s always that urge to splurge when your emotions are affected by just about anything. 

We automatically opt for impulse shopping to feel better or get a quick fix of happiness. Spending might be a short term solution but it can quickly lead ot a long term problem or stressor. 

Read: 7 Types of Debt in South Africa and How To Manage It

Don’t let your urges and emotions take control of your finance. It’s important to have the right mindset if you wish to be confident in your finances. It starts with choosing healthier, less expensive ways to process your moods and feelings. 

Start with Debtline

Another way to level up your financial confidence is by getting advice from a professional. Debtline can help with this. With NCR registered debt counsellors available to give advice on your finances as well as assist in getting you to a place of financial freedom. 

With Debtline you can access debt relief programs specially tailored to your needs. If you’re taking steps to get debt free you will get assistance and protection throughout the debt review process. 

Regain your financial confidence by contacting the Debtline team today. Fill in the contact form to receive a free callback.