Achieving financial independence is a significant goal for individuals seeking stability and control over their finances.
A recent survey suggests that four in 10 Americans have doubts about attaining financial independence within the next five years
The survey, conducted by OnePoll on behalf of Prosper Marketplace, polled 2,000 Americans and revealed that 42 percent of respondents have faced substantial financial independence setbacks in the past three years. Rising living expenses were identified as the primary cause, affecting 68 percent of participants.
Despite these challenges, the survey offered a glimmer of hope, with nine out of 10 individuals who experienced financial independence setbacks expressing their commitment to recovering from them. The most effective strategies for financial recovery, as reported by the respondents, included adhering to a budget (72%) and seeking new employment or exploring supplementary sources of income (56%).
To regain financial independence stability, 56 percent of participants implemented debt management strategies and repayment plans, while 51 percent aimed to become debt-free as part of their long-term plans. Transferring credit card balances to lower-interest cards (69%) and considering balance transfers to new cards with low or 0 percent APR (60%) were common approaches to reducing debt.
The survey also highlighted individuals’ aspirations and investment preferences
Among the respondents, 49 percent chose to invest in stocks, bonds, or mutual funds, while 42 percent explored alternative investment options such as real estate investment trusts (REITs) and peer-to-peer lending. When asked how they would allocate additional funds, participants expressed interest in assets with regular dividends (51%), alternative investments like real estate and peer-to-peer lending (49%), and rental property (35%).
Furthermore, the survey revealed a growing entrepreneurial spirit, with 38 percent of respondents aspiring to venture into entrepreneurship. Remarkably, half of those polled had already taken steps in this direction, creating and selling digital products having financial independence.
In conclusion, while financial independence setbacks pose challenges for many Americans, the survey highlights various strategies and aspirations related to achieving financial independence. It emphasizes the importance of budgeting, seeking additional sources of income, managing debt, and exploring diverse investment opportunities to become financial independence.
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