Financial independence is generally described as a state of having sufficient personal wealth without having to work actively for basic necessities – necessity such as shelter, food, and clothing. It is basically a way of living where you are not confined to a nine-to-five, full-time job just to sustain your current lifestyle. Achieving this takes time, effort and a whole lot of determination.
- Start with goal setting. First and foremost, specify your purpose. How do you see yourself five or ten years from now? Do you aim to get rich or do you want to live just comfortably? List down all your short-term and long-term objectives. As what Napoleon Hill once said: “Strong, deeply rooted desire is the starting point of all achievement.” So get on with your visions, be on track and set those goals now.
- Assess your financial situation. How much are you earning right now? Suppose you do less spending and more saving, up to what point would that take you? How long would you need until you’re near your objective? Do you need to switch jobs? What’s your guarantee that by doing so, you’ll get closer to where you want to be? Evaluate your current position and begin drafting strategies towards resolving obstacles that may hinder your growth financially.
- Manage your money wisely. This is where discipline and plans of action come in. What are your biggest expenses and how would you move towards reducing them? Are most of them must-haves or just nice-to-haves? Define their significance to your everyday life. This step is not meant to make you feel like a pauper that you have to save every little penny you earn. It’s all about managing your finances intelligently and making smart choices when it comes to expenditures. Experts say that saving money is a key to financial success. Put aside 10% or more of your earnings and do it as early as you can in your life. Remember Bruce Lee’s words: “Make at least one definite move daily toward your goal.”
- Ensure that you are out of debt. Most of your efforts would be useless if you are neck-deep with debts. So make sure that you pay them off and eliminate them entirely from the picture. Keep this in mind: “Debt is like any other trap, easy enough to get into, but hard enough to get out of.” -Henry Wheeler Shaw
- Take the risk and invest. Be a risk-taker and success would be within your hands. A couple of risks that you could take involve investments. One is through owning a property. The real estate industry is one of the best investments in the Philippines. If you would purchase and then put an apartment or a PH house for sale, you could later have it rented thereby giving yourself a monthly income without a sweat. Another is by starting up a business. With today’s technology, internet marketing is proven to be one of the most profitable businesses these days. Once you gain the necessary skills, you could either be a consultant or be your own boss. Whichever investment opportunity you decide, do not forget to always do a thorough research first and educate yourself. Just like what Benjamin Franklin used to say: “An investment in knowledge pays the best interest.”