To become financially independent, you need to make primary goals in your life. These are common objectives for many people since almost everyone wants to be able to make a living without having to go to a job. In today’s tumultuous financial world, this has become an even bigger issue as job security is lower than it used to be.
Steps to gain financial independence
1. Start with avision
Not trying to get philosophical with you, but you needs to have a vision of your life when you are financially independent. By creating the vision of your ideal life will help when you are trying to save money for retirement. Of course, financial independence does not have to wait until you are 60 years old. Take the time to imagine how different your life would be if you did not owe any money on your home, car or credit cards. How much money could you save every month?
2. Take action
The vision part is essential, but taking action is the most important step. The action is deciding to save a little more each month and spend a little less. Unfortunately today too many people do the exact opposite. Instead, they spend more each month by increasing their credit card debt.
What I always find amazing is seeing people charge their dinner on a credit card, but then never pay off the credit card. Are they still enjoying their dinner two or three months later? Of course not, so why do people live this way? Simple, they never developed a vision of gaining control of their finances.
Taking action is saving money. The goal should be to save the maximum amount in both of those accounts each year. The other part is to balance paying off your debt along with saving for retirement. Only paying off debt or saving money will not allow you to gain financial independence.
3. Live the dream
Gaining financial independence is about living the dream. The “dream” is whatever you make it. I cannot tell you what will make you happy. Everyone’s dream is different, but I do know not owing any money needs to be part of your dream.
Part of living the dream is having peace of mind without money worries. True financial independence is when you can live off the interest your money earns each year.
4. Incorporate the help of your family
Becoming financially independent is a life changing process and so will require a good deal of effort. Therefore, it’s essential that you enlist the support and understanding of your family, this can show itself in a variety of ways; just make sure that you have it when you need it.
5. Control your expenses
To create an income stream that will allow you to live without a day job you need to control your expenses. The less you spend, the less you need to sustain yourself and the more you have for the all too important step.
Take some time today to create a vision of financial independence for your life.