Let’s close our eyes and think of a happy future…and your financial independence.
A big house filled with the warmth and laughter of your family.
You are traveling to your dream destinations whenever you want to.
A big car.
Designer Clothes or buying anything without checking price tags.
To be honest, it appears, the answer to 80% of our problem is money. However, that is not 100% true. The truth of the matter is, our mindset towards money, makes all the differences. The Bible says “The love of money is the root of all evil” 1 Timothy 1:10. Basically this simply means, making money the purpose of your existence tends to lead to many troubles. There is nothing wrong with money, it is the way that we use it that makes all the difference.
So, what is prohibiting you from all these things listed above? You will achieve some of your goals as time passes, but to achieve much of what you want, all you need is financial independence. Of course, your mindset and lifestyle will determine what you actually do want.
To be precise, it is one of the keys to unlocking an exceptional life.
It is about having financial stability without worrying about whether you can afford it or not. It is about taking a trip to your favorite travel destination without thinking about getting vacation time from your office.
It is about your families particular dream house, without being bankrupt. Financial freedom is not related to retirement or retiring when you want to. It is about being financially free without waiting for retirement or worrying about your bills.
Being financially free is different for everyone. It means you can pursue your passion and turn it into a profit. It is not about having a set job, where you are entitled to a set salary, and going on specific times.
It is about spending time with your family and kids whenever you want to while building a business you love. It means making a connection to your true self, doing what you love, and supporting those values with enough balance in your account.
A quick personal story:
I’ve always wanted and dreamt about a nice house on an inland lake. Just something where my lovely wife and I could sit on the back porch and enjoy the view. Where I could dock my bass boat and fish my life away. Have a nice pontoon boat to cruise around the lake and enjoy the sunset.
Then I started to really think it through. We live in a very water rich area on the coast of Lake Michigan. We also live in a modest, ranch style home that is very comfortable for us. Our home equity is three times what we owe on the house and our interest rate is only 3.12 percent and the house payment is extremely low. In the full picture of things, my living expenses are next to nothing. I can get to at least 20 boat launches in less than twenty minutes and the three I use the most in less than 5 minutes once the boat is hooked up.
So, since I can fish in the same places, as often as I want, we are comfortable in our home, and can come and go wherever we want to vacation at, why would I move? Especially to a house that will cost me four times to live. Not to mention the added upkeep and time needed for a home on the water. See, financial independence, is all mindset. I could live on the water but do I really need to? NO! Just to be clear, I am not a millionaire, but I can fish, golf, and travel wherever and whenever I want. In fact, as I write this, my wife and I are on a short, fall color trip in the hills of South Indiana.
How to Reach Financial Independence?
Let’s break down the steps to being financially free and create a plan to empower your goals.
1. Set Your Goals
The first is setting a number and a specific goal. What do you perceive to be your financial independence? What does financial independence mean to you? The crucial part is setting a number and deciding a specific amount of money that you will need in order to be free financially. That number varies from person to person. Think about the money that can help you pursue your passion without worrying about the money.
Think about your total expenses, some amount for rainy days and emergencies. Now write this amount and keep it in your mind and realize this amount may seem quite large. Analyze this number. How much do you earn now and how much do you need to earn extra to make this money?
2. Address your Financial Fears
Having financial independence fear is quite common even among those who have millions in their bank account. In order to be free from all the financial fears, you need to address these fears. For example do you fear that all of your efforts will go in vain because no on else succeeded, in the past, in your family? Do you fear that you are the only one who is choosing a different path? Do you think that you are never going to cash in your talent or passion? Do you fear you are not smart enough?
Lets change the narrative. Instead of thinking I can’t, start thinking, I can and I will. Start empowering yourself and develop a belief in yourself. Stop your stinking thinking and change your mindset.
3. Take Charge of Your Finances
Having a belief and motivation is nothing, if you dont start taking actions immediately. It is a very crucial step in getting rid of your financial issues and into financial independence. Do a deep analysis of your finances and clean up any messes you find.
For example, if you have a debt that is not secured, or having credit card debt payments with huge interest rates?
Create a strategy to pay off those debts because otherwise you will be paying alot of your money as interest. Create a budget plan and stick to it. That way you will not only pay your debts, have some extra money and still have your finances under control.
4. Create a Strategy
There is very important misconception that people can become rich overnight. It will take you months of planning and self control. The first step is getting rid of all the debts and using that money you paid for interest rate for your saving. Start with creating a buffer or an emergency fund for 6 months. That will have to cover all your expenses even if you lose your job or get a medical emergency. After you have your 6 months plan sorted, you can use your regular money into creating a small business that you love.
This emergency money is extremely important for your peace of mind and your financial life. Consider this money as your life jacket, that will save your life, in case you go through an emergency. Start saying hello to a life that you truly wanted for you and your family without having any guilt.
5. Lets Build the Road to your Financial Independence
Now is the time that you start turning your dreams into reality and create a money making machine. Divide your money to three parts. One part of your money will go to you basic life expenses. That will be your security fund. The second part of your money will go to investing in stocks or bonds. That will be your risk or growth fund.
The third part of your money will go to your fun fund. You can have as much fun you want with that money. You can start putting money in this fund whenever you get some profit or win a bonus.
6. Finalize Everything for your Financial Independence
Now finalize your plan and make changes as required. Start putting more money into your funds when you get some profit. Keep a thorough eye on market and invest carefully. You can even talk to a financial advisor and get some insights that you might be lacking.
Final Words On your Financial Independence
Always remember that financial independence is different for everyone and your are not in competition with anyone else. It is your life and you are the master of it (I believe I am the master of my life, only under the umbrella of God’s direction). Understand what you want with your life and then set an action plan to achieve it. A financially independent person is not rich, rather he has the privilege and ability to enjoy life without worrying about a paycheck or a 9-5 job.
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