We all want to have financial independence but we do not know where we should start. Don’t you think that it will be great not to worry about money anymore and be able to take a breath?
So the question arises is where to start? So here are some of the things that you can do.
Reduce your expenses
The first thing that you can do and that will give you instant result is cutting your expenses. What are things that you do not enjoy that much but pay of it? Think about the satisfaction that you get from all the things that cost you money.
And ask yourself do I really getting my money’s worth. If you are not then you should stop doing it all together.
Learn the art of frugality
Learn how you can be frugal in your life. How can you enjoy more of what you already have at the place of wanting more and more and enjoying less and less?
The more will never end and you will never be able to get ahead of it. So the first thing that you have done is see what you already have and how can you enjoy it more. You have to learn to get the juice out of everything that you have now before you go out and buy something new. It apply to everything you want a new laptop but have you used your current laptop to the fullest? I know that a new and shiny thing is alluring but it will destroy you if keep spending out of your active income.
Develop your health
There are many advantages of healthy lifestyle you will be able to pass time. Your medical bill will be less and you will be able to enjoy your life even more.
Develop a reserve fund
You should have at least 2 years’ worth of your expense in your savings account in the form of MOD. So that you can get by unexpected expenses happening in life. Financial independence only come when you are able to let go of the worry of money.
Total financial freedom
When will you be able to say that you are totally financially free? When you are able to live of the interest that you earn from your saving or your passive income is more than your monthly expenses. Take for example that you found out that you need Rs.20000 per month to live your life. Then the total fund you will need will be Rs. 30 lack. So if you have Rs.30 lack in your account you will be able to earn Rs 20000 as interest from it and will be able to live of it.
I know that you have to save a lot to get there. But you will be able to learn live with less. Or other thing that you can do is develop a source of passive income which will take less time than saving and you will be able to get financial independence before time.
There a lot of ways in which you can develop your passive income I highly recommend that you use more than 3 ways for your passive income source. Some examples
- Write a book
- Rent a room in your house or develop a rental property
- Build a blog
- Learn to invest
- Start a business
Chose anyone of them then develop it before going to other. Financial independence is a choice it is your choice so if you want it you can get it. But if you like to be somebody’s slave for rest of your life then it is also your choice. So think about it.