One of the crucial projects one can work on is becoming financially independent by having enough income to pay one’s living without depending on others or without being employed.
One can become financially independent depending on how much they are paid or earn monthly or daily subject to the short and long-term financial decisions that they make.
Now our mindsets are programmed to believe that one can only be financially independent when they have a well-paying job or perhaps when they own a multi-million business. Some people wait for a rich partner to come along as a means to financial stability. ‘Becoming financially independent in your own right is a better and more secure option,’ explains Shiree Coetzer, a financial planner at Alexander Forbes.
Either way, If you have a partner in the true sense of the word, you can certainly work together to ensure that you plan for a shared future. However, if you do not have a life partner, you need to ensure that you can take care of yourself and your children if you have any.
The first step in financial independence is not relying on your significant other, your job or perhaps business because all these changes. Anything can happen, either you lose your job, you lose your partner or perhaps your business bankrupt. Instead, make efforts to understand the long-term financial implications of decisions about your savings, expenses, debts and even personal or business loans if you take any. So you must look at how much you are saving and if it is able to sustain you in case of emergencies. Ideally, you should save enough so that you are not forced to take credit whenever something exigent comes up. Furthermore, you must make focused decisions about your expenses so that you do not end up spending needlessly or due to peer pressure. Hence, you have to make sure that you spend on necessary stuff and not only spend because others are doing so because you might end up spending out of your budget, you must learn to live within your budget.
Lastly, you need to have a financial planner to help you look after your financial well-being and help you make informed decisions about your finances. A financial planner or advisor can help you make concrete decisions about taking business loans and personal loans, savings including retirement savings, and help you on your journey of becoming financially independent. Simultaneously read more and educate yourself on financial stability and financial management, the more you understand, the better equipped you are to make informed decisions and be financially independent.