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Taking steps towards a year of financial freedom

For quite a broad term, financial freedom really only refers to one fundamental thing - having enough money to support yourself in day-to-day life without having to worry. For many in retirement, this is something of a dream due to mortgage repayments and credit card bills - but it doesn't have to stay this way.

Let's go through some of the ways to build the foundations towards financial freedom - some of them could be simpler than you might think.

 

Making the most out of your existing finances

 

You could find that whilst you do have a reliable income from your pensions each month, your outgoings just don't quite match up with what's going into your bank account. In this instance, making a few little changes to the ways in which you manage your money could mean financial freedom.

The first thing to consider is whether you're paying too much for everyday expenses such as utility bills and car and home insurance. Never auto-renew when it comes to insurance - by spending an hour shopping around for different quotes, you'll save yourself a good wedge of money. Don't be afraid to search the market when it comes to utilities too.

Consider your weekly food shop also. Could you get the same products cheaper elsewhere? Don't restrict yourself to one shop just because it's what you're used to. Shopping locally can help you save too, and what you are spending is being put back into the local economy.

 


 

Consider part-time employment

 

Financial freedom is a gradual process, something that's going to take time to get to whilst any money concerns you may have get ironed out. Though not the most typical route for a retiree to take, you could move back into employment in a part-time capacity.

You could find that you make a little money doing something you'd otherwise be doing as a hobby anyway. Knowledgeable gardeners are always in demand, as are scribes for neighbours or acquaintances that can't write as well as they used to - there are hundreds of options out there, and it could help put a little extra cash in your pocket.

 

Release finances that are already yours

 

Granted, working whilst you're quite happily retired isn't for everyone, and sometimes hobbies are best kept as just that. If it's things like an exisiting mortgage, or credit card debts that are standing inbetween you and financial freedom in retirement, then you could consider an equity release plan.

Equity release allows you to unlock some of the money from from your home as a tax-free lump sum. This can be spent however you wish, and it can put important financial goals - such as paying off existing debt or affording a bucket list trip abroad - within reach. 

Equity release will reduce the value of your estate and can also affect your entitlement to means-tested benefits. The most common form of equity release is a lifetime mortgage, which is a loan secured against your home. You should always think carefully before securing other debts against your home. 

Learn more about equity release

If you think equity release could help you meet your financial goals, why not download our guide to learn more? We'll also post a physical copy out to you, completely free of charge.

Get your equity release guide

Equity release isn't for everyone, but it's another option worth considering - especially if taking back control of your finances is a big target for the new year! Download the guide to learn how it works and get all the facts. We recommend that anyone considering equity release reads 'is it right for you?' carefully. 

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