Independence is a broad term defining different boundaries for different individuals. But in it’s basic sense it means to be not dependent on anything. To be absolutely free of any inhibitions.
Financial independence has a significant importance. The sense of freedom that financial independence gives is irreplaceable. Because it is the first step independence. It instills a sense of responsibility.
Imagine the amount of satisfaction that you will get when you pay your own bills, rents and earn the food that you eat. That day your hunger will be truly satiated.
For some being debt free maybe equivalent to financial freedom for others it may mean to covering all the expenses.
In any case the path to achieve that kind of freedom is a rocky one, full of ditches and potholes. Nonetheless, we all have to travel on it one day.
A basic kit for such a journey includes,
- Set a financial goal
This is the first step and the most crucial one. Set a reasonable goal in the beginning, which is well under your achievable limits. Don’t get too excited and set unreasonable goals which are way over your limits. Start slowly and gradually increase it.
- Start working towards your goal
There is no point setting up a goal if you don’t work towards it. Don’t hesitate to debate and discuss the problems.
- Don’t let peer pressure affect you
Everyone works along to a specific pace in their life. And success is not defined by monetary achievements. So comparing yourself with your friends, or even enemies for that matter, is the last thing you want to do. It will only lead to unnecessary negativity and friction which you don’t need ever on your life. All your energy will get consumed in this and your focus will get blurred. Everybody takes their own sweet time to get things. Moreover it is not a race that you have to win. Money like food and clothes is just a basic need to survive life. Materialism is not your goal. Don’t forget that getting financially independent is.
- Avoid debt
Getting involved in the cycle of debt is the way opposite from becoming financially independent. Only the banks earn when you have a credit. Strictly avoid debts.
- Spend less
Don’t let the joy of earning get to your and end up spending more than you earn. The urge to spend money on the luxuries of life would be impossible to control. But if you start spending to have lifestyle that is socially appealing, you will have to pay for it and mind you pay for it through your nose!
Savings are crucial for maintaining the financial independence that you earned.