We’ve talked about financial independence in this post right here.
But how exactly does one become financially independent.
Here are a few tips to get you started.
1. Live below your means
The first and KEY step to achieve financial independence is to live below your means. Indeed, your income needs to be greater than your expenses meaning that if you earn $1,000,000 a year but spend $1,200,000 — which is the same as earning $30,000 and spending $36,000 a year — it can’t work. You don’t need to be rich to become financially independent as it only depends on the kind of lifestyle you want AND CHOOSE to live.
2. Have multiple sources of income
When you only have one source of income, you’re not financially independent. Indeed, if this source were cut off, money would stop coming in. However, when your income sources are multiplied, when one is cut off you still have many more to rely on. And if the remaining sources are enough to cover your expenses, you remain financially independent.
3. Put your money to work
Don’t have your money sit under your mattress. INVEST. INVEST. INVEST. Whether it is through buying and renting real estate properties, buying stocks or even starting your own business, you need to INVEST. But be careful, INVESTING IS NOT TRADING. (post to come about investing and the difference between investing and trading).
4. Go for it !
You need to change your mindset and believe that you can achieve financial independence — I am in that process myself. Believe that you can do it and then start acting on it. Set yourself a long-term goal and cut it into smaller goals — it’s just like wanting to eat a big fat cake and cutting this cake into smaller pieces that are easier to eat and digest. This way achieving a smaller goal that leads to your bigger one will keep you motivated.
5. Don’t be shy !
Don’t be shy with your main goal and once you’ve achieved it, reward yourself and aim even higher ! Nothing is impossible when you believe in yourself.