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You know well that you cannot achieve financial independence in one night. There is a lot you need to do in order to take a step to financial freedom and this text takes you through the ways you can do so. If you are financially sick you need quick recovery so let's get to the five ways you can keep your finances on track [1].

1. Invest

Online trading companies like CMC Markets [2] offer trading opportunities and one of the best ways to trade online in such companies is through spread betting. This type of investment gives you the opportunity of trading on various markets' price movements. This includes forex, indices, commodities and shares. As an investor, you will be able to actively take part in the financial markets since spread betting is commission free and tax efficient. You can also use small deposits to get control of a large value trade as you trade on the falling and rising markets (going short and going long respectively).

Spread betting works by letting you select an amount you wish to trade and use it against the spread betting position you choose from a market. The earnings you expect will go up in line with every point the market moves to your favour. Assuming that you operate on minimal loses, spread betting can really help you bring back your finances on track.

2. Check on Your Spending Habits

You need to design a proper budget for your spending and ensure you follow it strictly. In your budget, you will need to identify where to cut back your spending and ensure that most of your cash goes to things like savings and investments rather than entertainment. You can also use technology to keep track of your transactions. With the help of things like Trim [3], you will be able to monitor your spending habits and correct where you see you are going wrong.

Also on your spending, shop with a goal in mind and at all costs, avoid spending on things you have not planned to spend on. If you can't abstain from buying stuff just because they are on offer or a great deal, then you would need to see a therapist or seek financial counselling for further help concerning your spending habits.

3. Kick out Debts

This will require that you know the amount of disposable income you have and use part of that amount to clear your debts every time you have an opportunity say every day or month. You can achieve this by simply excluding the necessary expenses such as gas, food, housing, utilities etc. and remain with the disposable income which you can then use to repay your debts.

In order to ensure you don't stray, you will need a plan you can stick to. The plan includes the amount you are willing to pay on debt every time you want to. When paying your debts, always try to maximize the amount in order to pay off quickly and with less interest. You should also avoid falling into debt traps [4]. If you have a credit card, you will most likely be tempted to use it when you come across a deal so it would be better to keep it at home when you do not really need to use it.

4. Be Creative

Creativity can help you a lot when you need to financially get back on track. Around your home, you will find things you hardly use and you can sell them and get money for other necessary things. You can also kill the TV cable and fix things in the house yourself instead of unnecessarily spending on repairs. All the money you save from the little things you do can be put into investments in the stock market, paying off your debts, and expanding your emergency fund.

 

5. Reduce Your Mortgage Payment

If you are having a mortgage you have to know the exact amount it is going to cost to pay. You can take advantage of the low rates [5] which can lower and refinance your payments and save yourself some money. If you do the math correctly, you can be sure of a low-interest option to save your situation.