In 2017, a common goal for most people is to be more financially independent throughout the year, i.e. being able to spend your time and energy how you want and when you want- living life on your terms. However, the biggest challenge is not knowing how to go about it and that’s why we’re here to help.
There’s a famous quote which says “A goal without a plan is just a wish”. It is very difficult to disagree with such wise words. Therefore the first thing to highlight while trying to be more financially independent this year is to PLAN.
As funny as it is to admit, most people are lazy when it comes to making plans. A wise man once said, “If you fail to plan, then you plan to fail”. Planning brings along her friends Organization and Preparation to tag along on your journey to financial independence and they all help you to put your priorities in order. Therefore, making solid plans is the first step you should take towards achieving financial independence.
The next thing you need to put to practice is SPEND LESS THAN YOU MAKE. This is very self-explanatory and a core principle of financial independence. It is having more money coming in than going out with the difference being your savings. No matter how much money you make, if this principle is not followed, the rest of your financial plan completely falls apart as your savings rate would be zero or negative.
Thirdly, INVEST MONEY WISELY AND INVEST IN YOURSELF. The purpose for this is so that instead of you always working for money, rather in return, let your money work for you to bring in more money. At this point, you’ll develop financial freedom where you are generating enough passive income from your investments to comfortably cover all of your expenses. Investing in yourself and working diligently is for the purpose of developing new skills in order to make yourself more valuable. It is very important to never stop learning, self-educate yourself and read books.
Now, it is rather easier said than done, however, if there is a will, there is a way. Discipline, determination and sacrifice play a huge role towards achieving your financial independence and you’ll need to possess all three in high proportions. Finally, don’t take INSURANCE lightly. Nobody hopes for unfortunate events to occur, however, in the real world, anything can happen and you’ll be better equipped for it if you are proactive and ready.
Cheers to a financially independent year!