Were you ever shown a guide to financial independence in school? Why is it that schools insist on educating us about things we do not actually need? When did you last need to understand about when Columbus landed in the Americas or plants photosynthesis? I’m not saying that these aren’t fascinating and useful pieces of info, but compared to our financial futures rather trivial.
I ‘ve done lots of research on the area over recent years and have put together this guide to financial independence. I live by the principles in this guide on a daily basis and the results have been phenomenal.
The first phase of the guide would be to establish targets. It isn’t good enough to simply say you need to be free, it is overly equivocal. Individuals fail in life because they do not understand precisely what they need to do, have or be with their life. They might say that they would like to live in a big fancy house etc or want to make a fortune, but the truth is they do not actually understand what they need. These are only day dreams they are not clear aims. Take out some paper and a pencil and begin to take into consideration what you actually need from life; be unique
Record down every detail and contain all your perceptions, for example, it is no good to say “I ‘d enjoy a fresh house” What kind of house? How many bedrooms and bathrooms? In which place is this house? What colour is the house? Picture walking through the house? How does it feel to possess the house? When you call for all your senses does a dream become a fervent desire
Why do you should make a list of targets? When you’ve arrived easy: If you do not understand where you’re going, how do you understand? Can you strive for something if you do not understand for what?
The second procedure in the guide to financial independence will be to learn the best way to earn money. Learn about the various approaches and strategies that are different that there are to generate income. There are proven strategies that one may use to reach your financial goals.
Begin a home-based company. The largest issue with being an employee is that you trade time for money, and we have 24 hours per day. Another huge issue with being an employee is that you do not get paid your total value, because your firm has to make a profit from you you can not get paid your total value, or they’ll go out of business. Begin a home-based business and bring in 100% from your attempts and better still, learn to leverage off other people – a superb example of this is Network Marketing.
The next step would be to clear your bad debts. This can and should be done in conjunction with the first two procedures preceding. Set aside money every single month. There’s a difference between bad and great debt. Great debt makes you cash, bad debt costs you cash. An example of great debt might be a purchase-to-let mortgage on a rental property with a tenant paying the mortgage off. Bad debts are credit cards, car loans, personal loans etc. Invent a strategy to clear these debts. If you continue to fork out on high-interest rates each month you are going to never have financial independence. Save as you pay of your debts, do not only spend the excessive cash on gadgets.
This brings me neatly on to the last measure in the guide to financial independence – Save. Set aside money monthly for in case of an emergency. I like to call it the crisis fund. This isn’t currently drinking cash or cash to purchase shoes that are new, this is for when the car breaks down and you want it repaired, or if you lose your job and want cash to live off.
It’s also advantageous to set aside cash for the function of future investments. If you do it this way you giving your cash an opportunity to work for you instead of you constantly having to work for cash.
In conclusion, the preceding is only a guide to help you to get started. Before you realise your greatest vision of becoming free each of the preceding procedures will need additional research and hard work, but if there’s just one thing you do, never give up.