4 Steps To Financial Independence

Hi everyone, thank you for coming back to my blog. I hope you found my last blog interesting and useful, where I covered how to ‘Build Your Saving Using The Modified Swear Jar System’.

In today’s blog, I am going to go through the steps you need to take in order to reach financial independence. Financial independence is the status of having enough income to pay for your living expenses for the rest of your life, without having to be employed or dependent on others.

Financial independence is highly desirable, yet, for some reason, it seems to elude many of us. You’ve likely tried your hand at many different approaches, yet none have been able to give you the anticipated results.

The good news is that you can achieve financial independence! By making certain adjustments to your life, you’ll find yourself starting to build financial independence. So put aside your plan to work harder or put in longer hours and read on to find the answers you’ve been searching for.

Following these steps will lead you to financial independence:

Step 1 : Eliminate the word “credit” from your vocabulary

Having a good credit score can open up opportunities for you, but living in the credit culture also puts you in a stressful situation.

· If you’re seeking financial independence, start by doing away with credit.

· You probably have a few credit cards in your wallet. Get rid of them! If that makes you nervous, only keep one for emergencies. Just ensure the credit limit is somewhat in line with the amount of cash you’ve saved.

· If you’re unable to purchase something with cash, it probably means you can’t afford it. Live within your means, or even better, below your means.

· Avoid borrowing for frivolous expenditures because those are usually the hardest loans to repay.

Step 2 : Treat needs and wants differently

How many of the things you have in your life or do in your life, can be considered necessities? If you’re honest with yourself, you’ll realise you’re piling on unnecessary expenses focusing on your wants, rather than your needs.

· Making a list of the things you require for survival is a necessary step for financial independence.

· Everything that didn’t make the list can easily be eliminated from your expenses each month. Why put that amount of burden on yourself?

· The things you do to maintain a calm existence can be added to your list of necessities. For example, your yoga classes may be necessary because of the physical and emotional benefits.

Step 3 : Tap into your skill set

Are you working in a field that you love and that maximises your skills? If you think about it, you’ll realise that you’re most productive when you’re doing something you like or are good at.

· Think about your current job. Is it bringing out the best in you? Or, can you earn more and increase your productivity in another field?

· Perhaps you can pursue a transfer to another department at your current place of employment. Or maybe you want to move on to something completely different.

Step 4 : Save and invest money at all costs

Even if it’s a few pounds at a time, put aside money for your savings account and investments each month. Learning to save and invest helps you develop an understanding of their importance.

· One way to save and invest, is to pay yourself first each month, by transferring set amounts to your savings account and investment accounts, before you pay any bills or expenses.

· Many employers are also doing matched contributions into employee pension schemes, which is a great way to save for retirement and you should look into doing this as it’s essentially free money.

After reading this, you’ll likely realise it’s much easier than you think to make some simple financial adjustments. Give yourself four weeks of this routine and then assess how it’s going. You’ll feel encouraged by the positive results!

Until next time, stay safe and please share this blog with anyone who might find it useful. Thank you.

***On a side note, if you’re interested in starting a side hustle or making passive income, I highly recommend this 30 day course to get you started — One Funnel Away Challenge. It’s one of the best investments I’ve made to date and I can’t recommend it enough, so go check it out.***