5 Key Tips to Become Financially Independent

Becoming financially independent is a goal of every single person I know, but most of the people I know do not know how to reach this goal. 

If you want to become financially independent there are a few things that you need to do, here are my five key tips to become financially independent.

What is financial independence?

Financial independence is a  state in which an individual or household has sufficient wealth to live on without having to depend on income from some form of employment.

5 key Tips to Become Financially Independent

If you are coming from a poor background like me, becoming financially independent is the ultimate dream, everything I do in my life is building towards that goal.

Here are my 5 key tips to become financially independent

Set clear financial plans

Having your financial plans is the first stone to building your bright financial future, you need to set up your financial goal, how you are planning to reach there, and when you think you can reach there.

You need to have a picture of the life you want, the vacations you want to go to, your spouse, your house, where your kids will go, the car you want to drive, etc.

All these things will cost you money so you want to make sure that you include all of them in your financial plan.

Then you need to think about how you can reach there, this could be getting a better-paying job, starting a business, starting a side hustle, etc.

Then you need to give yourself a time frame you want to reach that goal, for me it is five years. 

Then break out that goal into small actionable steps, and each day to one thing that will take you closer to that goal.

Spend less than you earn

This might sound a cliche, but most people spend all their money and live paycheck to paycheck.

If you spend more than you make you will be in debt, and if you spend all the money you make you will be broke for the rest of your life.

You need to spend less than you earn to reach your financial goal.

You have two options for this,

One you can cut out some expenses that are not necessary and use that money to build your emergency fund and invest some of the money.

The second option is that you can make more money, for me this is the better option because you can not save money for financial freedom.

To make more money you will have to learn new skills, get a promotion from your job and usually that comes with a rise in the salary or start a side hustle and make extra cash.

Patience

Patience is virtual in this case, you will not become financially free overnight, you will need to follow the plan and work your way to it.

For some it will take them few months, for most it will take years of putting effort day in and day out, for me, it is 5 years plan, and now I am in my second year, and I think in four years I reach my financial goals.

Networking

They say your network is your net worth, this is true if you want to become financially independent, you need to know people.

You need to find people who have the lifestyle you want to achieve and people who are in the same way as you.

People who made it will inspire you to reach your goals and people who are in the same journey as you will be your accountability partners in your journey.

If you want to find like-minded people you can join our group here.

Investing

In the second point, I mentioned that you need to spend less than you make, that money you can invest it.

You need to invest in short-term, mid-term, and long-term investment opportunities, you can start investing in things like stocks, bonds, Cryptos, etc.

The best investment you can make is to invest in yourself, you can use some of that money to invest in mentors who can teach you new valuable skills, you can invest in tools that will help to make your job/business easier, etc.

Final words

That is, those are my 5 key tips to become financially independent, if you want to learn how to use the internet to become financially independent please watch this webinar that will explain the whole process.