financial independence

How to Achieve Financial Independence Easily?

The definition of financial independence will vary from person to person. But being able to live life comfortably and having no debt on the head can be the general definition of being financially independent.

Sometimes, it takes a lot to become financially independent. But the truth is not the same.

To be financially independent, all you need is a PLAN. Something that has worked for someone else will not surely work for you.

You need to have your plan and strategy to achieve financial independence.

Img source: Money Inc

So if you are also looking to achieve financial independence, then this post will help you. Achieving financial independence is a step by step game.

And by going through the steps described below. It won’t take you a while to become financially independent.

Let us look at all of the steps one by one in brief.

5 Steps to Achieve Financial Independence

Monitor your Income and Spending

The very first thing what you need to start doing is to monitor your income and spending. Now, for most of the times, you already know your income and it becomes really hard to invest in certain assets, and My Investment Blog suggests Fast Invest that becomes easy for managing your expenses and investment out of the savings.

But the real challenge you face is monitoring your expense. And that’s what you need to conquer first.

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You need to start tracking your spending. So that when you see the sheet at the end of the month you should know where you spent the money.

Once you start practicing this thing, you will see changes with time. And after a few months, you will be left with more money in your pocket at the end of the month.

Start Budgeting

Now once you already know, the inflow and outflow of your money. It’s time to start creating a budget for your monthly spending.
Budgeting is a must. Believe it or not, all the rich do this practice. They plan a budget before the month even starts.

And therefore, you should too start this practice as soon as possible. Now you may be having different budgets for different things.
For example, you can have a Grocery budget, Entertainment budget, and Traveling budget.

Invest to achieve financial freedom

It’s time you start investing your saved money. This is one of the most important steps of all. You cannot achieve financial independence until and unless you start investing. Now, you can read My Investment Blog, to read and learn more about investing because it is one of the best investment blogs for beginners.

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To become a good investor, you will have to read a lot. And once you get a good understanding of the game of investment.

You should start investing. Because until and unless you do it, you don’t know whether it will work for you or not.

Always know what you want

As discussed above, the definition of financial independence depends and varies from person to person.

Therefore, you should define your own financial independence goal very clearly because you can’t be, what you can’t see.

Once you know what you need, you can aim and work to get that thing. Also, to this, you should also gain knowledge about the tax matters in your country.

Otherwise, you can get into serious trouble with the law. Therefore, along with gaining knowledge about the investment, you should also learn about the taxation laws.

Consider your Career

You cannot achieve financial independence until and unless you have money to fuel your savings and investment.

Img source: launchedcareers.ca

And for most of you, your money might only be coming from your job’s salary. And therefore, leaving the job will not only put your career in danger.

But your goal to achieve financial independence might also land to risk.

Don’t quit your job, until and unless you have a steady income to fuel your investment goals.

Conclusion

I know not everyone is blessed with an inherited fortune. But trust me, with time and work you can achieve financial freedom.

The most important thing which you need to have in this journey of achieving financial freedom is Discipline.

Yes, discipline is one of the most important traits for becoming financially good. And all of the rich people have certain daily rituals related to finance which helps them to keep growing.

If you follow all these five steps then for sure you are going to achieve financial freedom in a concise time.

How to Become Financially Independent by Your 30s

Intellect is not the only thing that leads to success. Financial intelligence is a concept that many people neglect while growing up. School taught you many things, but your teachers and parents didn’t require you to develop budgeting and financing skills. This is not a skill you’re born with. You obtain it through learning and practice.

The question is: how do you obtain financial intelligence and how can you use it for becoming financially independent in your 30s?  

When you’re in your 20s, life is all about living day by day. You’re making just enough money to support yourself and you mostly care about traveling, having fun, and experiencing new things. Most people don’t think about buying homes and starting a family at this point in their lives. By the time you hit the 30s, those questions will arise and if you have a solid financial foundation, you won’t struggle.

Tips: How to Become Financially Independent by Your 30s

It’s important to have a deadline, so you can plan things well and you’ll start taking steps. Otherwise, you’ll assume you have indefinite time ahead so you’ll simply procrastinate the action.

Okay. Let’s say you have five years. What should you do? Here we go!

Img source: nbcwashington.com

Identify the Amount You Want to Save

If you want to have $1,000,000 to consider yourself financially independent, it means you’ll have to save $200,000 per year, every single year for five years.

That’s a lot of money, so maybe you’ll want to go for a smaller amount to make it more realistic. With $500,000 in savings, you can consider yourself financially independent. That’s enough money for you to buy a home and make productive investments. So you’ll need to save $100K per year.

Get a Job That Gets You Such an Income

You still haven’t completed your education? It’s about time for you to take care of that. Many students procrastinate graduation and hit their 30s without having things figured out.

If you’re close to graduation but you have the final project to complete, you can get help, too. You can hire an online writing service and just as making the decision: “I’ll ask to write my assignment for me!” A professional writer will work under your instructions.

Now let’s see… to save $100K per year, you need a job that gets you at least $160K after tax. What kind of job can get you that income? If you’re a software engineer, you can get there. Marketing, sales, finance, physical therapy, and other industries also offer good chances for earning that kind of money.

The safe bet is to enter a career in healthcare, technology, or corporate management. But if your education doesn’t make you a good fit for those industries, it’s time for you to consider starting your own business.

Img source: medium.com

Start a Business

Startups are still going big. It’s a risk, but you have great chances to succeed if you start a really good business. Here’s the right way to do it:

  • Find out what you can do better than others. Get the needed training, so you’ll become an expert.
  • Find a few other people who are just as good as you are. Team up with them and set the foundations for a successful collaboration. They are your business partners.
  • You might fail. Many startups do. But do you know what successful business owners do? They learn from their mistakes and start again. They do this until they get things right.  

The Secret Recipe to Becoming Financially Independent

There are three important things to keep in mind when wondering how to be financially independent:

  • Earn well (by getting a great job or starting your own business)
  • Spend as little money as possible, so you’ll save more
  • Invest your savings, so you’ll multiply them

You could keep the money you save in a safe place in your home. But that’s not how you benefit from them. You want to think about making investments. The simplest alternative is an S&P 500 index fund. And if you aim for higher earnings, you can invest in real estate.

Img source: entrepreneur.com/

Remember the secret recipe? Start earning well, start saving a lot, and invest your money in a safe source. You can talk to a financial advisor for advice. Just make sure you don’t invest your money in a highly risky affair, such as gambling. You need a safe option that will definitely multiply them. If you do this well, you’ll be financially independent by the time you hit the 30s. If you do things really well, you could be rich by then.