4 ways to attain financial independence

What is it to be free? Clearly, the definition is different from one person to another. But the definition of financial independence is rather simple – the time when your assets produce enough income so you can live comfortably.

So how do you get there? How can you attain such a level of Zen? Well, we can’t route your journey to such a tranquility, only show you what it takes. Just remember, this journey to financial independence is yours alone, so don’t go comparing yourself with others.

Our goal is to help you achieve your goals by showing you some simple key areas to work on.

Have clear financial goals

If you don’t plan, how will you attain it? The future is unpredictable, but having an idea of where you want to be in 10 years is your first big step. It’s not just about financial independence, it is also about self-growth. So, take out a piece of paper and start. Figure out what are your short-term goals and then visualize your long-term goals. Your short-term goals could include, being fit which would mean going to the gym or learning a new language. Your long-term goals could be about purchasing a house, retiring at an early age or even starting a company. To achieve these goals, you need cash and a clear target as to when you plan to achieve them.

Save enough

Save, save and then saves some more. The best way to go about it is to identify how much you're currently saving, and how much you need to save in order to achieve your goals. Using a financial planning calculator from various websites you can plan accordingly.

Some simple ways to save money:

Be debt free

Like we said before, plan, and if you are carrying credit card bills, financing cars, or any other loans, remember compound interest is working against you. Creating an aggressive plan to pay off debt quickly should be your number one priority to be financially free. Find quick solutions to pay off your debts and loans as quickly as possible. Do meet with a financial consultant to understand your debt and how you can pay it quickly.

Live prudently

Just because you earn big, doesn’t mean you are wealthy. As your career goes up, you are bound to be tempted to upgrade your lifestyle to match your income. Why wouldn’t you reward yourself with the latest gadgets and toys, when you have worked tirelessly for them. However, if you live modestly, you can put more money aside for your goals. Financial freedom will be just around the corner if you resist these temptations.