The S&P/ASX 200 Index (ASX: XJO) gave back its midweek gains on Friday and dropped notably lower. As a result, the index recorded a weekly decline of 0.2% to 6024 points.

While a good number of shares dropped lower last week, some stood out with particularly sharp declines. Here’s why these were the worst performing ASX 200 shares over the period:

The Alumina Limited (ASX: AWC) share price was the worst performer on the index last week with a 7.2% decline. Investors appear to have been taking profit after the alumina and bauxite producer’s shares surged higher a week earlier following its quarterly update. One broker that believes this has created a buying opportunity is Morgan Stanley. Last week it retained its overweight rating and price target of $2.00.

The Cooper Energy Ltd (ASX: COE) share price wasn’t far behind with a 7.1% decline. This appears to have been driven by a broker note out of Macquarie. According to the note, the broker downgraded the gas producer’s shares to a neutral rating and cut the price target on them to 44 cents. Macquarie made the move after Cooper Energy’s guidance for FY 2021 disappointed. The broker doesn’t expect its earnings to be positive until FY 2022 now.

The Western Areas Ltd (ASX: WSA) share price was out of form and dropped 6.6% lower last week. The majority of this decline came on Friday when the nickel producer released its fourth quarter and full year production update. Western Areas produced 5,114 nickel tonnes in concentrate for the quarter, bringing its full year production to 20,926 tonnes. This was just a touch short of its guidance. Operating cashflow came in at $22.9 million, leaving Western Areas with cash at the bank of $144.8 million and no debt.

The TPG Telecom Ltd (ASX: TPG) share price was a poor performer and fell 6.1% last week. The catalyst for this appears to be a broker note out of Credit Suisse. It reinitiated coverage on the newly merged telco with an underperform rating and $7.35 price target. It is expecting a step down in the company’s operating income in FY 2020 because of lower sales in mobile services and roaming revenues.

More reading

• Western Areas share price drops 5% following quarterly report
• ASX 200 drops more than 1%, IAG falls 7.5%
• Escalating US-China tensions are sending these ASX stocks jumping higher today
• Brokers name 3 ASX 200 shares to buy right now
• Will the iron ore price crash by the end of 2020?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Financial independence. If you ask 100 different people you’ll probably get 100 different answers as to what it actually is.

To me, it’s the ability to do what I like, when I like. If you love your job, that means continuing to work but with a strong safety net behind you.

The idea sounds great, but to many people financial independence can seem like a pipe dream.

Here are 5 simple steps to help anyone start working towards a stress-free retirement today.

1. Slash your expenses

This is a biggie. If you want to achieve financial freedom, having a good hard look at your current expenses is key.

You don’t have to go to austerity, eating beans and rice and listening to the radio.

However, you should look at what you’re spending and where. Have a think about whether you’re really getting good value from that Netflix subscription or lunches out everyday.

2. Pay down “bad” debts

Bad debts can be a financial independence killer. Credit card and other personal debts can quickly spiral out of control.

If you want to achieve financial freedom, paying down those high-interest debt obligations is an important step.

Look at balance transfers to low or no-interest cards and direct any spare cash towards paying down those bad debts.

3. Make a budget

Once your expenses and bad debts are under control, it’s time to make a budget.

Unless you’re very disciplined, it’s hard to achieve financial independence without some sort of budget. It’s a little bit like trying to drive to an unknown destination without a map.

I like to sit down and make a budget of income, expenses and your personal “profit” each year. This will let you plot out how much of your income you’ll have left for investments.

4. Save a consistent portion of your income

It’s easy to splurge when you first see that income hit your bank account. Achieving financial independence doesn’t require magic, but it does require discipline.

Rather than spending that money, make sure that you save it. If you can consistently save a good portion of your paycheck, you’ll be well on your way to financial freedom.

5. Invest, invest, invest!

Now that you’ve got your personal finances sorted, you can start to invest in some ASX shares!

There are endless opportunities for investing and generating returns for the future. There are hot tech shares like Afterpay Ltd (ASX: APT) or dividend shares like Commonwealth Bank of Australia (ASX: CBA).

If you’re just starting out, a diversified exchange-traded fund like Vanguard Australian Shares Index ETF (ASX: VAS) could be of interest.

Whatever you choose to invest in, make sure you stay disciplined and invest for the long-term.

To turbocharge your financial independence dreams, re-invest any dividends for strong compounding returns.

Foolish takeaway

This is just a quick guide to help investors make their financial independence dreams a reality.

Increasing income can be challenging, particularly given the current economic landscape, but by slashing expenses and making a budget you’ll already be making positive steps in the right direction!

More reading

• These BNPL shares have blown up since their IPOs
• Buffett buys more bank shares: Should you?
• Will the iron ore price crash by the end of 2020?
• ASX 200 sinks 1%: IAG cancels final dividend, tech shares tumble, IGO jumps
• Why Afterpay, Evolution, IAG, & Vicinity Centres shares are dropping lower

Motley Fool contributor Ken Hall owns shares of Vanguard Australian Shares Index. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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A poor finish to the week led to the S&P/ASX 200 Index (ASX: XJO) posting a small weekly decline. The benchmark index fell 0.2% to end it at 6024 points.

Not all shares tumbled lower with the market last week, though. Here’s why these ASX 200 shares were the best performers on the index over the period:

The Resolute Mining Limited (ASX: RSG) share price was the best performer on the ASX 200 last week with a 17.8% gain. Investors were buying the gold miner’s shares after the release of its second quarter update. During the quarter, Resolute achieved gold production of 107,183 ounces at an all-in sustaining cost (AISC) of US$1,033 an ounce. This means Resolute is on course to achieve its FY 2020 guidance of 430,000 ounces at an AISC of US$980 an ounce. The latter was notably lower than its average realised price of US$1,446 an ounce for the period. Fellow gold miner Silver Lake Resources Limited (ASX: SLR) was also a strong performer last week with an 11.6% gain. This follows the release of its quarterly update.

The AP Eagers Ltd (ASX: APE) share price was on form last week and recorded a strong 16.8% gain. The catalyst for this gain appears to have been a broker note out of UBS. Its analysts have initiated coverage on the auto retailer with a buy rating and $7.90 price target. Although it acknowledges that trading conditions are tough, it believes AP Eagers is well-placed to deliver structural improvements in its profitability over the medium term.

The Orocobre Limited (ASX: ORE) share price wasn’t far behind with a 13.2% gain. This was despite there being no news out of the lithium miner last week. However, investors have been buying Orocobre’s shares since its update in late June. So much so, the Orocobre share price is now up over 26% since this time last month.

The QBE Insurance Group Ltd (ASX: QBE) share price was a solid performer and rose 11% last week. Investors were buying the insurance giant’s shares after it revealed its expectations for the first half of FY 2020. QBE expects to report a first half combined operating ratio of around 104%, which reflects COVID-19 impacts of around $335 million, adverse catastrophe experience of around $60 million, and adverse prior accident year claims development of around $120 million. One broker that was pleased with its progress was Morgan Stanley. It has retained its overweight rating and lifted its price target to $12.50.

More reading

• Up 38% in July! Is the Orocobre share price a buy?
• Top brokers name 3 ASX shares to sell today
• Evolution share price lower despite increased scale of opportunity
• Why Audinate, Nearmap, Resolute, & TechnologyOne shares are tumbling lower
• ASX 200 up 0.4%: Banks lower, Newcrest impresses, Coca-Cola Amatil jumps

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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