Friday, March 23, 2012

How Financially Independant Are You?

Do you ever wonder what it would be like to control your own destiny. Travel where and whenever you want, work from any where in the world, have as much time with your family as you wish? I am sure the thought has crossed your mind. Maybe that's all it did was cross your mind without much thought to how you could make that happen. I think everyone deserves to live their dreams, but it takes a lot of hared work and sacrifice to get where you want to be.

Here are 7 tips to becoming financially independent

1. You must spend less than you make, this is an absolute must if you want to become financially independent. Spending more than you make is not only foolish, but you will always be in the poor house and probably a slave to the lender for many years. If you're not aware of your inflow and outflow, start paying attention and do a budget immediately.

2. Get and stay out of debt, the more money that goes to the lender is less money in your pocket. Make it one of your top priorities to get out of debt.

3. Figure out what makes you happy and develop a plan to get there. This can take some time to really discover what YOU want out of life. Without knowing what you want, gives you no direction to aim for, so take the time to get this right.

4. Determine how much money you really need to stop working. It may not be $10 million. This number depends on the type of lifestyle you want. Some people can live on less, some people want to live on more. Whatever the number is, make those sacrifices now, so you can live the life you want later.

5. Choose the right partner. If you're a tight wad and your spouse buys everything in sight, there's going to be a huge problem. Study your partners spending habits in the dating stage of your relationship and don't be afraid to talk about money. Dave Ramsey offers a great course called Financial Peace University, take these classes with your significant other. It will open the doors to having some healthy discussions on money.

6. Keep your investments simple. Only invest in what you know and understand. There's no need to try and get all sophisticated when you have no clue what you're doing. Take time to research different investments, talk to others who are actually making money on their investments. Please don't take advice from your broke friend. It's kind of like going to the doctor for legal advice. Who does that?

7. Don't follow the crowd because the crowd doesn't always know what to do. Do what's right for you based on your needs, your desire, and your situation.


Thomas - Ways to Invest Money said...

These are simple yet great and easily missed things to follow. Though they are easy it seems to be hard for many to either do or accept.

When the majority are doing something else people tend to want to follow the herd. Dare to be different and make your own path.

It doesn't take as much money as people think to be financially independent. Just control!

Shondell said...

You're absolutely right Thomas! Control and self discipline is what's needed. Once you have that, you're on your way.