A realistic 5-step guide to financial independence
Financial independence centers on the ability to live without relying on a full-time job. It comes from having minimal debts and having enough money saved to be able to live if you never worked again. As much as that seems like a fantasy, it’s a very achievable goal.
Find Lucrative Investments
Investments allow you to pay a set amount of money now for the potential to earn an unlimited amount in the future. Investing in the right stocks today could give you dividends to finance your retirement. Investments help to build a continuous stream of income that requires no continual effort.
Attack Your Debts
House and car payments are the greatest expenses of most people. Pay off all of your smaller debts so that you can start paying extra every month on your car and house payment. You’ll have more money to save, and you’ll need less monthly income to get by.
Get Out Of Work By Working More
Although the goal of financial independence is to work less, working more today can earn your future freedom. If you don’t make enough to save monthly, get another job. How awesome would it be to find a part-time job and put the entire paycheck into your savings account?
Prioritize Your Spending
Finances are full of choices. Sure, you need a car, but you don’t need a Lamborghini. Do you really need a gym membership, or will YouTube suffice? Buy cheaper versions of things you can live without so that you can afford things you treasure the most. Think before spending!
Find Your Why
As cliche as it may seem, you need to find your source of motivation. Saving enough to become financially independent will require years of self-sacrifice. It’s a lot easier to keep on telling yourself no if you have a vivid and clear mental picture of your end goal.