HOW TO SECURE YOUR FINANCIAL INDEPENDENCE.

HOW TO SECURE YOUR FINANCIAL              INDEPENDENCE.

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Have you ever wondered what financial independence is? If you have, do
you have a plan on how to secure your financial independence?

Financial independence basically means having enough wealth to maintain your lifestyle without worrying about a regular paycheck because you are prepared.
It is the reward of a lot of sacrifices, real hard work and a lot of time invested.

Before embarking on any journey you need to have a goal. What do want to achieve at the end? How do you want to grow as an individual?
The same logic applies to your journey to financial freedom. What fuels your desire to be financially independent?

• Do you desire to retire early?
• Do you want to try out a career you enjoy without ever worrying about a regular paycheck?
• Do you want to be a stay at home parent and hung out with your kids and partner as much as you can?
• Do you have a special vacation destination that you would love to visit?
• Do you have your eye on a really cool car?
• Do you want to be the proud owner of your own home?

These desires can eventually come to pass if you follow the following steps in your journey to be financially independent.

1. Prepare your expenses.
Building wealth is unattainable when you are living from paycheck to paycheck. The first step in your journey to financial independence will be to learn how to track your expenses. It does not matter if you earn a $100 a month or a $100,000 a month, you need to prepare your expenses to achieve your goals. If you overspend or underspend in certain areas you can always adjust your needs. Some of us do not have the patience to follow our budgets so we need to create our own systems on how to manage our incomes.

2. Clear your Debts.

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To achieve financial independence you will need your net income after taxes and not little bits left after paying your credit card bills, student loans, mortgage loans and such. You can pay off your debts with the extra cash you have after left budgeting your income. Once you pay off your debt, stay clear of the bad habits that drove you into debt in the first place.
You can apply the ‘snowball method’ where you pay off debts in the order of smallest to largest by paying off the smallest balances first while paying minimum payments on large debts.

3. Create an Emergency Fund Account.
This account will help you prepare for life’s little unexpected surprises so that you can be able to cater for the unexpected expenses. The emergency fund should be separate from your regular checking and savings accounts. It should hold more than three months worth of living expenses. When creating an emergency fund, take into consideration these 3 different accounts.

• Money market accounts.
• Certificates of Deposits (CDs).
• High-yield bank accounts.

4. Make Smart Career Choices.

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Your biggest source of wealth is your income. So when choosing a career look for a job that you love and enjoy and one that also supports your goals of achieving financial security.

5. Save! Save!       Save!
Before paying your bills you need to put a specific amount of money in your savings. Savings is one of the steps in your journey to achieve financial freedom. Other investors view this as paying yourself. You can always apply to have a portion of your income to be set aside for retirement if your employer has a retirement savings program.

Note- The time it will take you to achieve financial independence will be determined by your savings rate.

6. Spend Less than You Earn.
At this particular point, you should start seeing a huge difference in how your finances are looking. You will have more money in your hands; however, this does not mean you start spending more. You now either save the extra cash or you invest it.
Warren Buffett, one of the most successful businessmen in the world bought a five-bedroom house for $31,500 in 1958 and has never moved out of the house. This is a clear example that spending less should be part of your character in your quest to achieve financial security.

7. Invest Your Money.
The sooner you put your investment plan into action the more time you have to increase your wealth. If you are new into investing, it is best to hire a financial consultant. They can help guide you through this process as you gain your own experience along the way. Even with a good financial consultant the decision on what to invest in solely rests on your shoulders. Some of the best investment options in 2019 are;

• Stock markets.
• Real estate markets.
• Peer-to-peer lending.
• Bonds
• Cryptocurrency trading.

Conclusion
Being financially independent will enable you to live a more fulfilling life. You will be able to live within your means. Follow the tips on this blog post and you will be one step closer to securing your financial independence.