Growing into financial independence takes discipline, time and hard work. Ultimately, the goal is to have money generating assets which bring income without your active participation. With the right mindset, financial plan and determination, financial independence is possible.
Here are some ways to start working towards financial independence.
Tracking your income and expenditure gives you an overview of where your money goes. Create a budget with your income in mind. Keeping a budget makes you understand what you spend your money on, your poor money habits and where you can cut down cost.
Rather than displaying a high consumption lifestyle, save and invest in appreciable assets. Be frugal. Spend only on the things which matter to you. Money is best saved than spent on non-meaningful things. You don’t need to purchase all the things in vogue. Don’t let social media pressure you. Stay in your lane. No need to keep up with the Joneses. Save enough for the rainy day because they will come. You need to cushion yourself ahead of time.
Increase Your Income
Find a way to increase your income. Learn a new skill if you have to. There are several online courses you can enrol in on Udemy, Coursera, Udacity etc. Ask for a raise at work. Work towards a promotion. Start a side hustle. Sometimes, the only reason you’re not saving and investing is that your income barely covers your basic needs. When you have enough money to cover your immediate expenses, you can easily save.
Invest in several ventures to reduce risk. Then check on them often to see what’s performing and respond accordingly. Don’t make an investment and go to bed. Sometimes, it isn’t the ones you think will yield the most interest or dividends which do. Be informed.
Financial independence starts from believing money is attracted to you and then working towards making money work for you. Start small. Focus on the stage you are now. If you owe, begin to find a way of making enough money to pay off your debt. If you’re a spendthrift, check your impulse buying and automate your savings and investments.
Also published on Medium.