We’ve all read books and several articles on how to be debt free or financially independent. Still, you are not far from being broke again. These tips are not going to be effective or be your reality until you make up your mind to be disciplined enough to adhere to them.
Here are 7 realistic tips to financial independence:
Money Doesn’t Equal Happiness
I’ll like to start by saying that when you build your knowledge on a lie that, the more money you have the happier you become, you develop a hedonist mindset. This is unhealthy for your pocket, as you now work not to serve a particular purpose but to satisfy material urges which on the long term will ruin your finances. When you work, focus on the impact your money will have that will generate more income for you.
Money Management Skills
Take an online course to boost your knowledge, buy a journal and start putting all your expenses into paper. That way, you become accountable to all that goes in and out of your pocket. Draw a balance sheet, making sure that the earnings never equal to the expenses.
Earnings Should Never Equal Expenses
As mentioned above, it is important for your earnings to not equal to your expenses as this pulls you back to square one. This circle should be broken with a proper savings plan.
Pay Yourself First
Its important to do this exercise of paying yourself first and saving the rest as this helps you draft out a plan on how to manage your available funds effectively without cutting into your savings.
Buy What You Can Pay for Immediately
This is one of the biggest problems with having financial independence. People buy things they can’t pay for immediately and as the money accumulates, so also the burden to pay back. This slowly but surely drains you off the funds you have available. Live within your means, or better still below it.
Focus on Being Debt Free
The more you think, the more you become. Focusing on escaping the rat race will help build a subconscious momentum that will drive you to making better decision triggered at eliminating debts and attaining financial independence.
Time Is Your Friend
The sooner you start saving, the better for you. Start saving now and, sooner than later, you will begin earning compound interest and place yourself in a great position without the extra work.
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