Why choose the city of Phoenix to start a business?
In the last decade, the Phoenix economy has grown at almost twice the national average. This growth has created new job opportunities for residents. There are over 350 companies headquartered locally, employing nearly 80,000 workers.
Many entrepreneurs choose the Phoenix Area because they love its natural beauty, low cost of living, and unique culture. If you’re considering starting a business or already have one, check out these six ways to improve your finances.
- Striving for Financial Independence
The first step towards financial freedom is being able to live off of what your income provides without depending on someone else’s paycheck.
If you want to start saving now, take out a high-interest savings account and put away 10% of your monthly income (before taxes). You want to make sure that you don’t spend any of your extra funds before you reach your goal. As soon as you save $100 or more, you should move on to the next step.
- Debt-Free Living
Once you have reached financial independence, you will want to free yourself from debt. Credit cards are great until you overuse them or fall behind on payments. Once you’ve paid off your credit card debts, you’ll want to focus on paying off your mortgage or rent.
- Retirement Planning
If you’re looking to retire early, then you need to make sure that you have enough money set aside for retirement. To do this, you can either invest wisely or simply withdraw 4%-8% of your annual salary. Either option works, but the best option is to combine both strategies together so that you never run out of money.
- Emergency Fund
Having at least six months’ worth of expenses saved up will help you avoid a major crisis. An emergency fund doesn’t mean that you need to build up three years’ worth of expenses; instead, try saving up three months’ worth of your priority spending.
- Health Savings Account (HSA)
HSAs allow you to contribute pre-tax dollars to cover medical costs. Because HSAs aren’t taxed, contributions to these accounts can add up fast! However, if you use your HSA to pay for routine medical expenses, you may incur penalties from your insurance provider. Be careful not to exceed your deductible limits, and always consult with your doctor before using your HSA.
- Automobile Insurance
It’s a good idea to look into purchasing auto insurance while you still have student loans outstanding. Auto insurance premiums tend to go down once you have no accidents or claims filed. Also, consider buying collision coverage. Collision coverage pays for damage caused by a vehicle accident, whereas comprehensive coverage helps protect your car from theft and vandalism.
Understanding what financial freedom really means
When we speak about financial freedom, we mean being free from financial worries. We all want to make more money, but when it comes down to it, we don’t want to spend more time thinking about our finances.
This becomes difficult to achieve when your income fluctuates due to factors outside your control such as changes in the economy or interest rates.
So what can you do? If you are looking forward to making more money and spending less time worrying about your finance, then the best thing you can do is to set an appointment with Kyle Fuller from Fairway Mortgage today.