We all dream of living a life where we do not have to bother about every expense. We want to be free from all financial worries and always have access to finances as and when the need arises. Many people will tell you that it is all about earning well and hard in the present so that you can enjoy your future free from financial troubles.
However, what they do not tell you that being financially independent is also about being disciplined, cultivating healthy habits, and doing things on your own. In this article, we look at five easy steps to help you secure financial independence.
Why we do not think about Financial Security or Independence when young?
When we are young, it is all about spending money, living paycheck to paycheck, and maxing out our credit cards. This might help you with your initial excitement, but once the debts pile on, you will start losing your sleep.
The twenties and thirties are the periods when we need to establish our financial foundations. If you have read the rich dad poor day summary, you will know the importance of being free from financial worries.
These issues not only take a toll on our mental health but create discord with our near and dear ones. Worrying about money also leads us to develop health issues like diabetes and other life-threatening ailments when we are older.
5 Easy Steps to Secure your Financial Security and Independence
Plan and Budget your Expenditures-
The first step towards becoming financially independent and secure is the toughest. It is important that you start creating a detailed plan and budget for your monthly income and expenditure. You should also take into account all the additional expenditures and factors that in the budget. This will help create a roadmap for the future. Do it every month for the best results.
Save and Invest-
Being financially independent will require you to open more than one income stream. This is where investments can help you increase your income and secure your future. Many people just save and fail to make their money work. While others just invest exposing themselves to risks. It is essential that you do both at the same time for independence and security.
Live Life in the Real World and not on Social Media-
When we are young, the attraction to leading a social media perfect life can be overwhelming. It can also force us to spend beyond our means in a major way. This is why you need to make a distinction between the real-life and the one on social media. Not falling prey to peer pressure is an important way you are going to gain financial independence and security.
Avoid taking Credit for personal expenditures-
There is a distinction, which should be made between taking business loans for investing and taking a personal loan through credit cards. Personal expenditures should never be done from credit lines. This will bring in a lot of discipline financially and allow you to lead a debt-free life in the future. However, you can always take business loans for investments.
Add to your Knowledge-
It does not matter if you are reading something, or watching a webinar not connected to your area of expertise. If you are adding to your knowledge, you will benefit from the same in one way or another. Do not be afraid to learn at any stage of your life. This will open up new horizons and present opportunities, which you previously thought were not possible.
The Final Word
Being financially independent and secure through financial management has many benefits. The foremost among them being self-respect and self-esteem. It can also grant you a tension free life, where you are not worried about making interest payments and settling loans every month of your life.