Financial independence is a goal that I have for myself. Does that only mean I am debt-free? Not at all. What it does mean is that you’re debt-free and your investments supply enough income for you to live on comfortably. My future goal is to work because I want to work, not because I have to work. Listed below are 7 habits that will help you gain financial independence found at www.money.com.
Habit #1: Stay away from consumer debt – Have you ever had an issue with credit card debt? If so, it is probably a credit card balance that you just can’t seem to pay down. We call this type of debt consumer debt. What may have started out as an innocent use of a credit card to make a purchase that you told yourself you would pay in full at the end of the month. Simply stay away from this type of debt! The credit card companies and banks are the ones benefiting from this type of debt.
Habit #2: Don’t keep up with the Joneses – It really shouldn’t matter to you what other people have that you don’t have. They may have the appearance of being rich while simply covering up for the immense amount of debt they have built up. Looks can and usually are deceiving. Live your life, not the life of others.
Habit #3: Always pay yourself first – Make saving and investment a priority in your financial plan if at all possible. This can be simplified by having amounts automatically deducted from your payroll check and invested in savings, retirement, or other types of investment accounts.
Habit #4: Invest in assets that generate money, not those that cost money – Investments could be made in stocks, investment properties, etc. Stay away from assets that depreciate in value and look for assets that increase in value.
Habit #5: Continue investing – When you start investing, keep on investing if at all possible. Invest in the good times and the bad times no matter how the market is performing. Remember, you are investing for the long run. Building wealth does not happen overnight, it is a long-term strategy.
Habit #6: Be flexible – Understand that sometimes you have to be flexible with your investing and saving plan. There may be times when your investment plans have to change based on life events. Simply make the adjustments and continue with your plan when you can.
Financial independence is attainable. Make today the day you begin working your financial independence plan! Create a plan and FOCUS (Follow One Course Until Successful)! You’ll be thankful you did!