The idea of saving is a foreign concept to the majority of people. They have no idea that it’s the fastest way to financial freedom.

They may know that it’s necessary, but they have no idea where to start. Even less that it’s possible long term.

People often assume that those with a lot of savings are either high earners or have received an inheritance.

Maybe this is you or any of the people around you.

I’m guessing if you are reading this, it’s likely because you managed to get past that initial difficult hump and saved up a little extra cash.

What now?

If saving money was easy, everyone around us would never struggle financially and we would all be set. Unfortunately, this is not the case.

Nearly 70% of Americans have less than $1,000 in their savings. That’s right! About 7 out of 10 people you come across have less than $1,000 to get them out of a financial bind. If that doesn’t sound insane to you, you’re built stronger than a Toyota.

Really think about that and congratulate yourself if you’ve managed to save up that or even more. If you’re lucky enough to have some spare cash sitting around in your savings account, you did a great job! You’re part of a select few that is ready for disasters to come your way.

However, saving that money is only half the battle. The next thing you should do is try not to blow it.

How you choose to spend your money can make a huge difference in the future of your life.

Splurging your hard-earned cash in the wrong places can keep you from achieving your financial goals. This will force you into endless loops that we see many of our customers get trapped by.

By having a proper plan in place, you can optimize your spending and avoid the tendency to blow it away.

If you are not working towards any particular goal, then you have no idea where you’re heading. You’re giving control to someone else to determine the outcome of the most important things; your life and your family.

Without a proper financial goal or a budget, chances are you’ll spend more than you should. You’ll then come up short when you need money to handle some major life risks or economic situations that may arise. This is the biggest reason why most of our customers have ended up with bad credit or huge amounts of debt.

Having goals for your money is an important step to protect yourself financially and prepare for any financial crises in advance.

When you give every dollar a name, you’re telling yourself what to do with your money. There won’t be any more scratching your head and wondering where it went at the end of the month.

Think About Your Future

Financial freedom requires you to take the time to figure out what is important to you and what is not. By looking at your prior expenses you can figure out where you’re overspending. This will allow you to really hone in on how you want to use your money.

Then, ask yourself a few questions.

Do you want to save for a down payment on a house? Do you want to start a college fund for your kids? Would you like to keep some cash aside as a retirement fund?

Long-term goals require you to invest a portion of your savings so that the money grows. You don’t touch that money until your goal is met.

If you have short-term goals, it is wise to keep the cash in a savings account. This reduces the risk of you losing your principal. Either way, your money should be dedicated toward something that you carefully planned.

If you would like a guide on how to budget you can read our article on it.

If you have never set goals, start with some that are close to you. These can help you manage your finances.

Set short-term goals to make progress towards more distant aims. This will help you get your finances in order. They will help you spend your money wisely, reduce your money troubles, keep your credit score high, and save for retirement.

Get Rid of All Debt To Acquire Financial Independence

People with some extra cash on their hands often find themselves in a dilemma. They are in a quandary. Should they use the money to pay off their accumulated debt? Or should they invest it?

Either choice can make sense, depending on your situation. However, we recommend getting rid of all your debt first.

Most people do not work well with potential stress looming over their heads.

Investing can be stressful. Many people do not invest, not just because they lack $1,000 in their account. There is another reason.

That’s because of the risk associated with investing. Investing in the stock market, real estate, a new startup, a side hustle, or bitcoin carries a risk. Your money could disappear. Because of that, it is better to get your financial house in order first before you take on that risk.

Start with Highest Interest Debt

If you’re serious about achieving financial freedom, you need to start with high-interest debt. It is more likely to provide a better return on your money than any investment.

It would not be sensible to invest your money if you are paying 30% interest and can only earn 7%. This means you would be losing 23%.

Credit card interest rates are an average of 15% but can easily top 30% on some products. This is some of the higher interest-rate debt you can come across.

If you’re a student and have private student loans, you probably have some high-interest rates. This means you’ll have to pay a substantial amount of money every month because of your balances.

One of the best uses of your extra cash could be paying off your credit card debt. You can double this by paying off private student loans as quickly as possible.

Determine which one is the highest and put everything into that one until it is paid off. This will save you tons of money in interest but also keep your credit in good shape.

Left unpaid, your debt will grow and grow with interest charges adding to your balance. These charges could potentially incur new charges of their own.

Note: You could also try paying off the smallest amount of debt you have first and continue up from there. This is a great way for those of us that need quick wins in order to keep us on track. Both ways are great, but we believe financially our method makes the most sense.

Continue With The Next Highest

Pay off the highest-interest debt first. Once it is paid off, move on to the next highest. Then work your way down from there into paying lower-interest debt such as paying off your auto loans.

Interest rates on these are usually low. However, taking the burden of debt off your shoulders brings an invaluable sense of peace.

When buying from a buy here pay here dealer, you will likely face high interest on your auto loan. It may behoove you to pay this one off as quickly as possible.

We always suggest to our customers from our Fresno dealership that our auto loan should be their highest priority. This can help them save massive amounts on interest. It will also allow them to focus on eliminating all other debt from their lives as well.

Your Credit Score

Another important reason to pay down your debt includes your credit score. Your credit score determines whether or not you’d be eligible to borrow money in the future.

When you have a high amount of debt to your name, it negatively affects your credit score. That’s not even mentioning the constant reminder that you owe others.

This brings us to our next point.

Accelerated Route to Financial Freedom with Bad Credit

If your credit is bad, then make sure you pay off your charge-offs before moving into paying off your home. With bad credit, you are putting yourself in a losing battle. This will prevent you from taking advantage of a lot of opportunities that could come your way.

We are big believers that debt could be used in a smart way. It can give you more options and grow your wealth.

Let us be clear, though.

NOT ALL DEBT IS SMART.

In fact, most debt is not. However, having bad credit is a surefire way to make sure that you never see that smart debt.

Stay away from personal loans and avoid using credit cards. Card issuers know that most people will fall trap to them and hook them for life.

Pay off your charge-offs and work on getting your credit score in order.

Most people dream about owning their own home one day. Then the reality of the hefty down payment turns it into a fantasy in their mind.

Creating your goal and then mapping out your plan to get there turns it into a reality.

Banks and lenders often require a 20% down payment of the purchase price for a home. Pay off your other debts first. If there is cash saved, make a down payment on a house or car. This will reduce the size of the loan.

Financial experts, such as Dave Ramsey, highly recommend that eliminating debt is the quickest route to financial freedom. We believe that some debt can be beneficial. However, it is best for most people to be debt-free as much as possible.

We suggest everyone put at least 30%, preferably more, down on a vehicle. However, we understand it is not feasible for everyone.

This is why our Fresno dealership offers the best In House financing of all buy here pay here dealers in the area. We offer down payments as low as $500, credit reporting, and a free warranty on our vehicles. These features make us stand out from other dealers.

You can read our suggestions on purchasing a used vehicle using our 30/3/30 rule.

An emergency fund is just what it sounds like. A fund of money that is there when emergencies occur, and yes, they will occur.

The beautiful truth is that none of our lives are perfect. We will have car accidents, illnesses, job losses, and other horrifying tragedies that will set us back unexpectedly.

We may not know when they will happen, but we know that they will. This is where the fund comes into play. Having this protection available will ensure you are never caught off guard. This will prevent you from going into bad debt.

It also guarantees you steer clear of paying any late charges or maintenance fees.

As a general rule of thumb, you should have a minimum of 3-6 months of living expenses. This will protect you in case you lose your job or encounter any other emergency.

Using High-Yield Savings Accounts to Multiply Financial Freedom

We recommend that you take it a step further and place the money in a high-yield savings account. These accounts can multiply your savings and help you achieve financial freedom without needing to touch it. Many of our employees use Ally bank and have had a great experience with them.

This is one of the financial institutions we trust as much as ourselves.

Avoid traditional savings accounts like most local banks offer. These doubtful accounts will hardly earn you any significant amounts.

Open an account at a high-yield savings account instead. While some may have minimum balance requirements, the savings rates are well worth it.

Certificates of Deposit (CDs)

You can also consider opening a certificate of deposit. These certificate of deposit accounts may have a minimum opening deposit or certain deposit requirements you need to meet.

Ensuring your money is continually growing like this, even if it’s just a small percentage, is important. It provides a safety net that grows for unexpected emergencies.

Having an emergency fund is a great way to make yourself more financially secure and deal with unexpected expenses. So, as you earn money, put the extra cash in a high-yield savings account that you don’t touch.

Some other banks you can consider are PNY bank, Bask bank, or Bread.

All will help you earn on your cash while you focus on paying off bad debt expenses.

You may be thinking that after that is done you are all set but it doesn’t stop there. There are additional tips that can help you get your financial house even more in order. Think of your future.

Start Putting Aside 15% of Household Income Minimum

Living with your children due to financial constraints is not ideal for retirement. Unfortunately, this has become a reality for many Americans. It is expected even more so as baby boomers continue to come to retirement age.

Unless you got a huge inheritance, you must save enough money to cover your expenses during the retirement years. Even then, many people that receive an inheritance of sorts find themselves broke after 1-2 years.

Research says that if you want to live comfortably during retirement, you should set aside roughly 15% of your income. We suggest you take this even further and save up even more for a point we will be touching later.

Put money aside for your children’s education

The average tuition fee for the 2019-2020 school year ranged from $11,260 for state colleges and $41,426 for private colleges. These costs are only going to get worse as time goes on. If you want to ensure that your child gets a quality education, put some money aside for their education.

Imagine making $45,000 from doing nothing. If this sounds too good to be true, it’s not.

Investing $120 per month for the next 18 years in an index fund that earned you 6% interest would guarantee this.

This is very feasible for anyone to do in nearly all income brackets. A debt-free education can ensure that your child is set up for success in their future.

The Shortcut to Financial Liberation – Investing Your Money

The last tip we have for you is to invest as heavily as you can. Setting aside 15% of your income can help you reach financial freedom for retirement. However, freedom should not only be attained when you are older.

We suggest that you tighten up your spending as much as possible and begin saving 50% or more of your income. Take those savings and reinvest it into your choice of investing.

We strongly recommend you educate yourself in index funds but most of all, buy and hold real estate. This is the ideal method to keep earning income from your money while taking advantage of tax benefits. Furthermore, you are investing in something that will increase in value over time.

Have 15% be your minimum, but aim for 50% or higher. Trust us, it’s possible.

You might be wondering why a Fresno dealership that finances people with bad credit is trying to help you get your financial life in order.

Our Mission

The truth is that we care about our customers and hope we can help them rebuild their credit. We want them to understand finances enough to dig themselves out of the hole they are in and achieve financial freedom.

We hope that our customers don’t have to use our financing. Instead, we want them to return to us because they love us, our vehicles, and what we can accomplish for them.

We understand that even good people sometimes face struggles. These struggles can include credit issues, job loss, medical issues, divorce, or a situation spiraling out of control.

Our Buy Here Pay Here dealers want to help everyone secure their financial position. We want to help them pull out of the endless loop that many buy here pay here dealers place customers in.

If even 1% of our customers are able to better their lives with this information, we feel we have made a difference. If we are able to help anyone else outside of that as well, then we are fulfilling our purpose.

Will You Help Us Achieve It?

We ask that you send anyone you feel could benefit from our program. If you happen to know anyone who is getting turned down from one Fresno dealership to another, send them our way.

We also ask that you send them to this blog. Hopefully, they can begin to learn about the ways they can get their finances in order.

We can get them easily approved through our buy here pay here dealers. All they would need is to fill out our application and provide proof of income, residence, and a valid photo ID. One of our two Buy Here Pay Here dealers would contact them asap and provide them the details of their approval.

You have your roadmap to how you can make wise decisions with the extra money in your bank account. It wasn’t easy for you to save it up and because of that, you are now in the top 30% of the American population. You’re on your way to achieving financial freedom!

Make sure not to blow it on anything unnecessary.

Create a budget for yourself and make sure that every dollar has a name for it. It’s time to work out a plan that suits you. Lucky for you, we made one that you can easily use.

Recap the Steps to Financial Freedom

Step one is making a small savings of 1k followed by getting rid of all debt. We suggest you start with the highest-interest debt first and then continue down until all debt is eliminated. Before you pay off your home, we recommend you fix up any credit issues your credit history might have. Any charge-offs should be paid and requested to be removed from your report.

From there, you can build a down payment for a home or car. Finally, your emergency fund is crucial to make sure that you are never taken by surprise when life throws a curveball in your direction.

Don’t stop there. Continue to save a minimum of 15% of your savings but make it even higher, like 50% or more. Invest it so that you are able to live a truly wonderful and stress-free life without having to wait until you’re 60 or 70. Finally, don’t forget to think about your children and their future.

Consider the total amount of savings, your risk tolerance, and how quickly you want a return on your investment. Then decide what makes the most sense for your goals.

Follow these steps and you’ll find it’s the fastest way to financial freedom.

Live in Financial Freedom With Good Credit

We hope we can help you get your financial life in order and live a great life. If you’re in our area and are looking for buy here pay here dealers, our Fresno dealership can get you approved easily. We can continue to help you improve your financial situation as well.

We may have buy here pay here dealers, but we genuinely care about helping our customers improve their credit score and their finances.

Make sure to follow our approval criteria above. If you have any questions about the services our Fresno dealership provides feel free to contact us.

We understand that everyone’s financial situation is unique and that there is no one-size-fits-all solution. That’s why we take the time to understand your individual needs and recommend the best solution for your particular goals.

Our team of experienced and knowledgeable financial professionals are here to help guide you through the process. We are committed to providing you with the best possible advice and service to help you achieve your financial goals.

We are dedicated to helping you make informed decisions and take the steps necessary to achieve your financial goals. Financial freedom is only a few steps away.

Financial Freedom is not the easiest concept to grasp. Because of that, here are some answers to additional questions you might have!

Q. Why is saving important for financial freedom?

Saving money is crucial for achieving financial freedom because it provides a safety net for unexpected expenses, helps you avoid debt, and allows you to work towards your financial goals.

Q. How can I start saving money if it’s difficult for me?

Saving money may be challenging, but it’s not impossible. Start by creating a budget, tracking your expenses, and identifying areas where you can cut back. Set specific savings goals and automate your savings to make it easier.

Q. Can I achieve financial freedom even if I have a low income?

Yes, financial freedom is possible regardless of your income level. While it may take longer to reach your goals with a lower income, careful budgeting, saving, and smart financial decisions can help you make progress over time.

Q. Should I pay off debt before saving money?

It depends on the type of debt and your financial situation. Generally, it’s advisable to prioritize high-interest debt and pay it off before focusing on saving. However, it’s essential to have a small emergency fund while working on debt repayment.

Q. What should I do with extra cash after saving it?

After saving money, it’s important to be intentional about how you spend it. Consider your long-term financial goals, such as saving for a down payment on a house or investing for retirement. Avoid unnecessary splurges that can hinder your progress.

Q. How much should I save for an emergency fund?

Aim to save at least 3-6 months’ worth of living expenses in an emergency fund. This will provide a financial cushion in case of job loss, medical emergencies, or unexpected expenses.

Q. Can investing help me achieve financial freedom?

Investing can be a powerful tool for building wealth and achieving financial freedom. Consider investing in assets like stocks, real estate, or index funds that align with your risk tolerance and long-term goals. However, it’s essential to educate yourself and seek professional advice before investing.

Q. How can I improve my credit score and financial situation?

Improving your credit score involves paying off debts, making timely payments, and avoiding excessive borrowing. Additionally, practicing good financial habits, such as budgeting, saving, and investing wisely, can contribute to a healthier financial situation.

Q. How can your dealership help me achieve financial freedom?

Our dealership aims to assist customers in rebuilding their credit and improving their financial lives. We offer buy here pay here financing options and provide guidance on budgeting, debt repayment, and financial planning. Our goal is to empower individuals to overcome financial challenges and achieve long-term financial freedom.

Q. Can I achieve financial freedom even if I have a low credit score?

Yes, even with a low credit score, it’s possible to work towards financial freedom. By taking steps to improve your credit, paying off debts, and practicing responsible financial habits, you can gradually rebuild your financial health and achieve your goals.

I think you’re ready to start on your path to financial freedom. Remember, it’s not hard to do. It just requires a little patience and discipline.

You’ve got this!