10 Ways To Be Financially Independent

Being financially independent means being able to afford the lifestyle you think you deserve! It means having enough money to live your best life. Financial independence is the top goal of every person but how many of us truly achieve this goal? When you look around, many of us thrive initially but settle for a compromise that fulfills our rudimentary idea of life but only a few of us are willing to go an extra mile to materialize this dream! If you are searching for a way to become financially independent then you have taken the first step toward getting the life of your dreams!

Financial independence is available to those who learn about it and work for it! (Robert Kiyosaki)

We have collected some genius tips to help you to begin your journey of financial freedom. Keep reading!

1-    Live A Purposeful Life!

Set your intentions to lead a meaningful life. This means you have to be clear about your goals in life. Divide these goals into long-term and short-term goals categories. Envision what you accomplish five years from now and in the long run and break those goals into tiny chunks of attainable objectives. You can journal about what you think a purposeful life is and conclude your vision for yourself. When you step into your inner mind and understand your own needs, you become clear about what you expect in life. Tap into your creative instincts to create a vision board about the kind of life you want to lead. This is your first step toward getting financially independent.

2-    Translate Your Goals

This means, do not be vague about what you want to do. Be clear, explicit, and specific! For example, being financially independent is a vague goal. You need to envision more than just the two words financial independence. You need to discover your end goal and then solve the mystery of what, how, and when. Breathe life into this goal by defining what financial independence means to you and what kind of life you think you deserve. What do you envision doing in your twenties, thirties, and forties? What do you want to be in each decade and how much comfort and ease do you want to bring to your life. This would allow you to also analyze the task you are up for and anticipate the challenges you may face while striving to get your goal. When your goal is financial independence you know you have to gather all your might and resources to work hard now so that you can have peaceful future years. With a solution-focused mindset, you can handle the challenges too!

3-    B Is For Budgeting!

It is important to understand the inflow and outflow of cash in your life. When you are earning through a salary-based job, you need to be mindful of where you spend. Of course, it takes a lot of sweat to make money, and wasting it just like that would lead to no savings! To make sure that you are saving and not overspending, try to create a budget for your monthly expenditure. Budgeting is a great way to remain strictly focused on your goal of being financially independent. You can use digital assistants such as the budgeting app to help you create your monthly budgets. Trust me, it is not that hard!

4-    Say No To Impulse Buying

Overspending is not the cure for your anxiety! Honestly speaking, we all have been there when we have been overworked or overwhelmed and we engaged a little too much in an impulsive purchase. Make sure you are not habitual of collecting and hoarding things as a mechanism of stress management. Do not get carried away with the treat yourself mantra every time you have to reason with that inner voice about those fancy shoes that cost you a fortune! If you feel a strong urge to make a purchase, immediately ask yourself, do I need this? Can I manage without it? What benefits would I gain from buying it? These questions would reason your mind to conduct a cost-benefit analysis and a trade-off between your current desire for impulse shopping and your long-term goal of financial freedom. The choices are yours, and yours alone!

5-    Debt, Mortgages, Student Loans, And Credit Cards

Credit cards are usually high interest and mortgages and student loans are low interest. Despite that, they should be paid on time and firsthand. Make sure you pay your credit card full balance every month so that your money is not being drained. It is hard to build wealth with mounting debt and avoid taking any extra loans. Pay your mortgage and student loan and prioritize getting these loans paid asap so that you can save for your dream life!

6-    The 50, 30, 20 Rule

Divide your spending into 50, 30, and 20 ratios. 50% of your income should go to your needs such as utilities, rent, groceries, vehicle maintenance, etc. 30% of your income should go to your wants. Wants are things that you think you need but you can also survive without them For example, the dining out, the splendid stiletto or that perfume on sale! A little treat yourself spree wouldn’t harm. The remaining 20% of your income should be your savings. This means you should save enough to cover 6 months to year-long expenses of your needs through your savings if there is any adverse situation in life.

7-    A Little Extra Hours

Freelancing and digital marketing are the growing avenues for getting a few extra bucks from home. Other than your job, try to diversify your stream of income. A few extra paid hours at work, or smart moves such as freelancing, or creating an Instagram page are great steps to financially diversifying. Many platforms provide easy ways and flexible timings to earn a couple of extra dollars. Make sure that you are not becoming anxious while trying to put in some extra hours of work. Embrace and enjoy the process!

8-    Make Smart Choices

Many people in America reported that their biggest money drain is takeaways or food deliveries. Make sure you record your monthly outflow of cash for three months to identify the spending patterns. This would help you to discover the leaks! The pitfalls where you lose your hard-earned money! After that, start making smart choices. For example, you took an uber to go to the nearby store. Try walking next time! Try taking homemade lunches instead of indulging in foodpanda! Be the master of your income outflow! Here are a few ways of making smart decisions:

• Make your meals. It is healthy for the belly and for your wallet too!
• For important occasions like your friend’s birthday or a dinner party, try to buy supplies in bulk so that your cost is minimized.
• Try to keep an eye for sales for the branded things you oh-so-wanna-have!
• Plan your holidays so you can budget your expenses for the vacation and have a well-deserved respite!
• Grow your food. You can start by having a mini kitchen garden to have your organic produce. You do not have to pay for parsley, bell pepper, or tomatoes. Gardening is fun too!
• Entertainment does not need to be expensive. Try to find free and fun means of enjoying your leisure. Walk-in nature, site seeing, hiking, etc. are free entertainments. These would help your mind to unwind and your wallet remains thick!

9-    To Invest Or Not To Invest, That Shouldn’t Be A Question!

Invest! Never think about not investing. However, make sure to analyze and be sure about the source where you want to invest. Stocks may be a risky slope to head start. Try investing in bonds for starters. But make sure that you are investing from an early age to get the return! There are a lot of online videos about guiding youngsters to invest from an early age. When your money tarts multiplying you enjoy the effort and sweat of saving and rolling out your money more!

10- Be More Aware

You must educate yourself about financial management and global financial issues. Review your tax regulations. Know about the changes in global market space vis-à-vis exchange rates. If you have invested in Gold try to keep up with the changing gold rates to maximize the profit on your investment. When you are financially up to date you would be able to take the risks and adjust your financial portfolio accordingly.

Being financially independent requires consistent efforts and everyday smart decisions so that your money remains in your hands. When you become fully in charge of what you spend on and how you spend it, you can fix a lot of money drainage in your life that may be happening inadvertently. When you take complete charge of your life you can assure yourself of the future you deserve. These tips are your first step into a life of financial freedom!