Chasing the concept of financial independence is essentially the holy grail of personal finance. Its why I’m writing this blog, and its why you’re reading this blog, but what does it really mean?
Why would you like to become financially independent? Would you like to retire early? Travel more? It can mean many different things to different people. One of my favorite blogs, jlcollinsnh, calls this “F-You Money.” The beauty is that you can define this for yourself. For some there is a clearly defined end game. A popular goal with finance bloggers is to “retire” between 30-40, live off their investments, and travel the world. For most people, their goals are something like this: live the lifestyle I want now, while saving enough for a comfortable retirement. Its your choice, but what financial independence gives you is the option to do what you like. It gives you FREEDOM TO CHOOSE.
The formula for getting to financial independence is simple.
STEP ONE:
Define what financial independence means to you. As I’ve said earlier, it can be anything. For me, its more about the journey than the destination. I truly enjoy the quest of finding new ways to improve both my finances and my life. This blog is essentially one big outline of my journey.
STEP TWO:
Make plan on how to get there. I can help with this.
You need to start by spending less than you make. We’ve all heard it, but few people actually take the time to make sure they are doing it. It is ESSENTIAL. If you do this, and wisely invest the surplus, you’re on the road to financial freedom. If you don’t, you’re on the road to debt. Its really that simple.
Looking for ideas on how to spend less than you make or save money? You’ve come to the right place. It starts with re-defining what you value most in life. Do you value a new car or the latest gadget more than your own financial freedom?
Take cable or satellite tv, for example. How much do you pay for this monthly? You could be saving $50-$100 per month if you decided to try living without it. It wouldn’t be like heading back to the dark ages either. There are massive amounts of really good content available with alternatives now. I personally own an Apple TV device. There are Smart TV’s have streaming capability, as well as other devices. I cut the cord and haven’t missed it for a second. I suggest you give it a try. Believe me, you can always go back.
STEP THREE
Get started! No matter where you’re at in life, just get some positive momentum going and watch it build.
Readers: How do you define financial independence for yourself? Where do you want to see yourself in 10 years?