10 Steps to Attain Financial Independence - :

10 Steps to Attain Financial Independence

Filed in Business Guide by on January 27, 2019 0 Comments

Have you been asking yourself how do you get financial independence? Are you wondering how much money does it take to be independent? Wondering what does it mean to be financially independent? Thinking of the steps to attain financial independence? Well, worry no more as this post is here to give you answers to a myriad of these questions and even more.

10 Steps to Attain Financial Independence

Everybody desires some level of financial independence in life. In fact money-wise, the aim is to ultimately become financially secure so much so that you do not have to rely on anybody for sustenance.

But how do you go about achieving financial independence when, in most cases, your salaried jobs doesn’t ensure that? Even as a student, how do you gain financial independence from your parents? Even as a salary earner, how do you ensure you do not have to live from hand to mouth, relying exclusively on the meagre wages and salaries you get from your 9 to 5 job?

Well, that is the thrust of this post, as we are going to explore at least 10 ways in which you can overcome financial stress and uncertainties and achieve true financial independence. Read on and gain some valuable insight into this all important issue.

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  1. Avoid Getting Into Consumer Debt

This is one of the key reasons most people remain perpetually poor and hardly achieving any form of financial independence. Consumer debts include buying with credit cards, getting payday and car loans, and generally engaging in spending money you haven’t truly earned yet. Once you get stuck in this addiction, it is hard to ever get out of and achieve financial independence. One thing you need to understand is that any money you spend through you credit card is never your money; you are enriching the banks, while deflating your own resources, often on things you can do without. Learn to get rid of high interest debts and make sure your money works for you, instead of the banks.

  1. Don’t Try To Keep Up With Your Neighbours

In other words, ignore the Joneses. Often, one of the reasons why we get into financial meltdown and can’t make our money grow is because we want to keep up with our neighbours. We buy things we don’t need, live in houses we can’t afford, and send our kids to schools way out of our league simply because we want to impress others. All these end up depleting our resources and keeping us in perpetual financial bondage. You want to gain financial security? Ditch that mentality of measuring up to your neighbours. Live to impress yourself, not others. That way, you will live within your means and save money for investment.

  1. Spend Less, Save And Invest More.

Most of us live way above our means, while our finances are in tatters. We buy things we don’t need, even getting into debt just to live a life of luxury that is way above our pay-grade. That is not how to achieve true financial stability. You need to track your expenses so that you do not live above your means. Secondly, find a way to cut out excess expenses and channel those into saving, and ultimately investment. That way, you gradually build up your finances from scratch and achieve financial independence in the long term.

  1. Pay yourself first

This may sound a bit selfish and confusing, but it is always advisable that you put yourself first once money comes your way. Thus, you need to make it a priority to set aside savings first before thinking of disbursing money for other issues. Save before you pay your bills, purchase groceries or even your rent. Your savings is paramount. You need to set aside that first before you now work with the money left. That is how to ensure you do not end up battling to save after you have already start spending the money you had from the word go.

  1. Invest In Income-Generating Assets

Once you have started paying yourself first, you do not allow that money sit idly in a savings account. Rather, use it wisely by investing in income-generating assets such as good stocks, treasure bills, federal government bonds and even good mutual funds. That way, you allow your money to ultimately work for you as the return on investment keep trickling in.

  1. Keep Investing

Financially buoyant people are those who do not simply save for saving sake, but those who understand the fact that for your savings to be meaningful, they need to be invested in good assets that will yield long-term return on investment in the long term. As earlier mentioned, good stocks are one way of turning your savings into an investment portfolio, and ensuring the proliferation of your assets and finances. Another way is ensuring your set aside money and invest in a retirement plan. That way, you do not need to struggle to live a decent life in your retirement years.

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  1. Get A Part Time Job

One of the drawback to people achieving financial independence is relying on one single source of income. For one, you are unlikely to live a decent life and still save for the rainy day. Also, you need to consider what could happen if that singular source of income dries up. Ensure you have a part time job on the side.  This affords you the luxury of having spare money and not relying entirely on your 9-5 salaried job for both sustenance and savings.

  1. Have A Flexible Lifestyle

Be flexible in your lifestyle so much so that in their worst case scenario where you lose your day job, you do not crash financially before the next job comes your way. This still feeds into you living a frugal life and not living above your means. Even if you have a pay raise, do not consider raising your standard of living, instead increase your savings. Leading a flexible life ensures you always live within your means and not go overboard financially even when things are rough.

  1. Have A Complementary Spouse

Many people may want to ignore this line, but it factors in if you are ever going to achieve true financial independence. This is because no matter how successful you are in managing money and investments, if you do not have a frugal and invent-oriented spouse, will achieve very little by way of success. It will be more like a struggle in a quicksand. If you make a mistake and marry the wrong person, it is almost certain that the emotional, financial and social toll you endure in that treacherous marriage will take its toll on your finances, and ultimately on how you secure financial freedom. This is because as you try to build your life and future, he or she is out there pulling you down financially, and flushing your money down the drain of impulse buying. So, choose your spouse carefully. It could be the difference between a life of financial prosperity and that of penury.

  1. Explore And Maximise Opportunities

Often, the difference between a poor man and a rich one is maximising opportunities and exploring investment options when they present themselves. You need to be financially-saving and understand the dynamics of wealth creation. Income is not wealth. Even if you are a salary-earner, you have to, at some, point, think of ways of using the available resources at your disposal to generate your won wealth. Cash in on opportunities and turn them to your own advantage. Save money, invest in income-generating assets, sit back and watch your investment grow, and your life forever changed. That is the bedrock of financial independence: having money work for you and not the other way round.

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I am a blogger, professional CV writer, copy editor and proofreader, as well as your go-to guy for all kinds of writings. Connect with me through the social media handles displayed above.

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I am a blogger, professional CV writer, copy editor and proofreader, as well as your go-to guy for all kinds of writings. Connect with me through the social media handles displayed above.

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