6 Ways to Become Financially Independent

6 Ways to Become Financially Independent

1. Know your plan: Consider your vision towards a The path to financial independence by getting a realistic picture of what options you have and what you will love to be worth financially in 2 to 5 years time.

2. Budget: Understand your finances effectively and plan your expenses according to your budget. these is essential to achieving financial independence as it makes your plan your spending and savings.

3. Spend less than you earn: One rule of thumb is to put between 10-15 percent of your gross income in savings or investments every week or monthly and adhere to a lower standard of living and expenses to put more money into savings and investments sooner.

4. Avoid debt: Getting rid of debt and avoid piling up debt.

5.Consider your career. Financial independence doesn’t require you to quit a career you love, but you really can’t get to financial independence without steady income to fuel savings and investments that will build over time. If you are behind on your financial goals, chances are you won’t be able to quit working, at least for a while. You might even consider expanding your sources of work-related income, such as consulting part time, Affiliate marketing or investing in mutual funds or Fixed deposit.

6. Buy assets that generate income. No investment is foolproof - whether you invest in stocks, shares, Real estate or cash investments, all have up and down. Always ensure you fully understand everything you invest in and focus on assets that will make money over the long haul.

One last point. Being able to pay for a lifestyle you love without worrying about money is an enormous relief and reward. If you don’t feel you’re heading in that direction, consider putting some of these steps in motion today.

Reference from: huffpost.com

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One rule of thumb is to put between .........................of your gross income in savings or investments