Secrets of Financial Independence; A Motivational Point of View
A lot of people wish to be financially independent, but on their own part, have they fulfilled the requirements? A lot of things in life do not answer to just wishes, but to taking actions and responsibilities. One of the things that I have understood is that what happens to you is almost entirely a function of what you have made to happen for you. Financial Independence does not just jump on people from nowhere, there are certain things that you need to do and actions that you need to take for that to happen, and we shall take a look at some of them.
The first secret is to ensure that you spend less than you earn. No matter what you earn, if you are not disciplined in your expenses, you may blow the whole thing at once. This is why you need to know what to spend on and how you spend. Remember that you are not in competition for the most spender. If you have to gain financial independence, then you have to learn to live within your means. Avoid unnecessary and vain expenses that do not add positively to you. Also learn to prioritise you expenses, starting with the most pressing needs to your wants. Also avoid impulse buying and stick to your budget.
The second secret is to learn to save. Saving is not when you learn when you get to the top, but what you do as a lifestyle. In fact, from where you are and with what you earn, you should learn to save. If you cannot save when you earn in 6 digits for example, even if you start to earn 7 digits, you may still not save because your needs and desires would have multiplied. You do not save after you have finished spending and maybe very little or nothing is left. But you need to set out a percentage that you need to save even before you start to spend. This is because your saving should be done as a way of life. A friend once shared an insight with me that once he receives his salary, he would move a certain percentage to another account to save. This also taught me how to save. Saving leads one to financial independence.
The next secret is to have more than one source of income. I used to tell people that being entirely reliant on just one source of income is a very big risk. Even if you are making so much on the single source, it still does not mean that you should not get something else to do in addition to it. It might be a business, an investment, a side hustles. Adorably, some of the business that people get as side hustles might become their own main hustle over time. I know someone who started freelancing as a secondary source of income together with his primary work. Something happened and his got suspended at his place of work, so it was the freelance business that became his main source of income until he got reinstated. To gain financial independence, have multiple sources of income.
Another very vital secret of financial independence is to invest wisely and with discretion. Trust me, there is a level of financial independence that you will not achieve if you have not made investments. In this era, it has become easy to invest, even online and offline. I know someone who has been investing in the crypto space with a percentage of what he earns. At this point, his wallet has become considerably big. However, when you want to invest, you have to be cautious and do it wisely. More so, you need to undergo a background search of the business to invest in and do your own research.
The last secret that we will look at here is to continue gaining financial knowledge. The more you grow in learning and understanding, the more you will be in command over certain issues of life. There are many ways to gain these knowledge; through books, going for seminars, interactions, online materials. You need to understand how to make profitable investments, how to save, how money works, how to budget, etc. You need to stay updated with money-making strategies in order to achieve and maintain financial independence.
Thanks for reading
