We all want financial freedom, don’t we? But how many have got it? Financial freedom has not only to do with your salary but your ability to take care of expenses, invest for the future and at the same time have no loan to repay. Let’s start by defining what I mean when I say I’m financially independent. By my definition, financial independent means having enough assets to cover my normal living expenses with passive income alone. Having a steady income can be exciting, sometimes a little too exciting. It’s easy to get into financial trouble in your 20’s without even realizing the potential consequences. Simply paying attention to your spending and saving habits early can make reaching financial success a whole lot easier in the long run. It’s so easy to think “I have plenty of time to save”, but believe me, that plenty of time goes by a lot quicker than you think and if you start now, you’ll thank yourself later. So when you’re just starting to get your financial life together, or starting to think about it, here’s a list of tips to help you better understand your money and how to get better spending and saving habits in place now.
Without discipline and continuous focus on your financial goals, you’re not likely to get ahead. There is constant temptation to slip up, especially on the spending side of the equation. We make financial choices every single day usually multiple times a day. Every activity in your day is a spending decision: the flow and temperature of your morning shower, your wardrobe, your breakfast, your lunch, your evening entertainment, your dinner, your residence to which you return home. So, to become fianancialy independent keeping your focus on right track is the most important thing to do.
If anyone of us wants to become financially independent savings are extremely important. We all get pocket money. The ones who want to become successful start saving from a very young age. And with those savings we can start investing at any age we want. Savings are actually helpful in any age or in any field. One should know where to spend them correctly. If savings are spent in a wrong field there’s nothing one will get from them but if they are used efficiently they can help the most in making a person financially independent in early twenties.
9. PATIENCE IS THE KEY:
Financial independence is a fantastic goal. No body want to give it up. But it’s by no means a guarantee. The stock market, or the economy as we know it, could collapse tomorrow, however unlikely that may be. There will always be plenty of risks. Where possible, you should plan to mitigate them like by maintaining a small side income that you could scale up if needed. Where not possible, you should accept them and know that you’re smart enough and flexible enough to make it work.
8. FOCUS ON EARNING:
“In today’s economic environment you cannot save your way to millionaire status,” writes Grant Cardone, who went from broke and in debt at 21 to self-made millionaire by 30. “The first step is to focus on increasing your income in increments and repeating that.”My income was $3,000 a month and nine years later it was $20,000 a month. Start following the money, and it will force you to control revenue and see opportunities.”Earning more money is often easier said than done, but most people have options. Read about 50 ways to bring in additional income, some high-paying jobs you can do on the side.
7. SAVE TO INVEST, DON’T SAVE TO SAVE:
Grant Cardone says, “The only reason to save money is to invest it. Put your saved money into secured, sacred (untouchable) accounts. Never use these accounts for anything, not even an emergency. This will force you to continue to follow step one (increase income). To this day, at least twice a year, I am broke because I always invest my surpluses into ventures I cannot access.” Investing is not as complicated or daunting as we make it out to be. The key to consistently setting aside money is to make it automatic. That way, you’ll never even see the money you’re contributing and you’ll learn to live without it.
6. DON’T SHOW OFF SHOW UP:
“I didn’t buy my first luxury watch or car until my businesses and investments were producing multiple secure flows of income,” writes Cardone. “I was still driving a Toyota Camry when I had become a millionaire. Be known for your work ethic, not the trinkets that you buy.” And if Need inspiration to save more and spend less? Look around and you will get to see or learn from many people out there who are very inspirational. Some people love to show off their wealth but you should know that to save up is way better then showing off in earlier age.
5. CHANGE YOUR MINDSET:
the same old thinking and disappointing results, closed loop or negative feedback mindset concept – a napkin doodle with a cup of coffee
“Getting rich begins with the way you think and what you believe about making money,” self-made millionaire Steve Siebold explains. At the end of the day, “The secret has always been the same: thinking” If you want to become financially independent start changing your mindset and you will see your goals so clearly , you will find new ways to earn something and everything will start falling into place. And when you’ll get to see new ways you’ll get automatically inclined towards becoming financially independent.
4. INVEST IN YOURSELF:
The safest investment I’ve ever made is in my future writes Tucker Hughes, who became a millionaire at 22. “Read at least 30 minutes a day, listen to relevant podcasts while driving and seek out mentors vigorously. You don’t just need to be a master in your field, you need to be a well-rounded genius capable of talking about any subject whether it is financial, political or sports related. Consume knowledge like air and put your pursuit of learning above all else.”Many modern-day successful and wealthy people are voracious readers. Take Warren Buffett, for example, who estimates that 80% of his working day is dedicated to reading.
3. SET GOALS AND VISUALIZE ACHIEVING THEM:
If you want to make more money, you have to have a clear goal and then a specific plan for how to achieve that goal. Money won’t just appear you have to work at it. Rich people choose to commit to attaining wealth. It takes focus, courage, knowledge, and a lot of effort, self-made millionaire T. Harv Eker emphasizes it’s possible if you have precise goals and a clear vision: “The number one reason most people don’t get what they want is that they don’t know what they want. Rich people are totally clear that they want wealth.”
2. START HANGING OUT WITH PEOPLE YOU ADMIRE:
Andrew Carnegie, who started with nothing before becoming the richest man in the US, credits all of his riches to one principle: the Master Mind. The idea is to surround yourself with talented people who share your vision, because the alignment of several smart and creative minds is exponentially more powerful than just one. Plus, we become like the people we associate with, which is why the rich tend to associate with others who are rich. “In most cases, your net worth mirrors the level of your closest friends,”explains Siebold. Exposure to people who are more successful than you are has the potential to expand your thinking and catapult your income. The reality is, millionaires think differently from the middle class about money, and there’s much to be gained by being in their presence.
1. SET YOUR GOALS HIGHER:
The financial mistake we all make is not thinking big enough. There is no shortage of money on this planet, only a shortage of people thinking big enough. Start thinking about what you want to attain from the start and then you will face all the hurdles coming in your way very easily and will become financially independent in your early twenties. These steps don’t guarantee millionaire status, but doing these things won’t hurt your odds either.