The journey towards financial independence, freedom, or whatever you choose to call it is never that difficult – but it is not that easy either. It requires discipline, sacrifice, and much patience. It demands putting effective and practical tips into action irrespective of how difficult it might appear at the beginning. Some of the things that you can do to start your journey towards guaranteeing your financial stability include;
1. Stay clear of consumer debt
Consumer debt cripples your progress towards financial independence. Each time you make purchases using your credit card, you enrich your bank while making yourself poor. Just like payday loans and car loans, credit cards are a creditors’ machine for milking money from their customers. Begin by getting rid of high-interest debts, and then free your finances to work for you rather than the banks.
2. You do not have to keep up with anyone
One of the reasons people spend unnecessarily is to keep up with their friends and neighbors. Your life is unique – compare your successes and what you consider failures to that of none. Do you work so hard so that you can accumulate stuff you hardly need in the name of fitting in the social circles? Is that why you wake up every morning to go to work? If you have a modest home and non-luxury car in the meantime, that is all you need. Don’t compete to get luxury cars that you are struggling to maintain. It is financially burdening. Ignore your friends, relatives, and neighbors, and in a couple of years, they will stream to your home asking for financial advice. You will be so much ahead of them.
3. Live below your means
Yes, you read it right! Just because you can afford something does not justify an automatic purchase. While the above two action points significantly contribute to your financial freedom, you need to practice a lot of diligence and discipline to keep your expenses way below what you earn. Track your expenses to see how you spend your money. There are obviously things you do not need. Cancel them out from your list of expenditure. Lifestyle inflation is something else you need to keep to the very minimum. Do whatever is possible to widen the gap between income and expenses – even if it means finding side hustles. Anyone who is financially free will tell you that they lived below their means to get to where they are today.
The above tips have proven useful for many people. It is worth giving it a thought. What do your friends think about attaining financial independence? What are some of the things they have tried that worked or didn’t work for them? Share this article on your social sites to see what they have to say. By sharing what you have learned, they will be more than willing to open up to you. There is so much information out there about financial stability that you will find very useful.
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- The Simple Path to Wealth Your Road Map to Financial Independence and a Rich Free Life
- J L Collins
- Publisher: CreateSpace Independent Publishing Platform
- Grant Sabatier
- Kindle Edition
- Chris Mamula, Brad Barrett, Jonathan Mendonsa
- Publisher: Choose FI Media, Inc.
- Paperback: 334 pages
- John J. Vento
- Publisher: Wiley
- Edition no. 2 (08/28/2018)
- Scott Rieckens
- Publisher: New World Library
- Paperback: 224 pages
Last update on 2020-01-16 / Affiliate links / Images from Amazon Product Advertising API