Are you content with the balance between your work and life, though? We all require employment in order to support our lifestyle, and it takes a steady flow of money to make that happen. We all could be independently wealthy, though.
Easy enough to say, but it’s not out of reach. People continuously do this, and they look exactly like us. It’s all in the difference in what they choose to do with their 24 hours. Do you want this type of life? There are ways and means available for becoming independent and rich on your own terms.
1. Decide What Lifestyle Level You Want
Being rich and independent means something different to everyone, but at the most basic level, wealth independence refers to not needing funds from anyone or money from a job because of the money you have available to spend. It is not a fixed income level or the number of gadgets at which you stop being rich and independent and become rich; it is more of a mindset or a change in perspective in regard to time.
The amount of wealth you have will be different, and it will depend on what kind of lifestyle you want to have. It’s possible to be happy in a nice house and have no debt and have enough money to do whatever you want. Perhaps you want to have a collection of exotic cars and your own island and have money to spare.
Both are not dependent on your bank account balance; the cash flow that is required is enormously different in the two situations. To be independently wealthy, you have to define what that means to you and make that your target.
2. Life Below Your Means
Regardless of the amount of income derived, the goal is to live independently of outside support by running out of months before you run out of money. The approach has a two-fold advantage. First, you are training yourself to live on less than you bring in.
This will keep you independent no matter how much you make. Secondly, the money left over after your independent needs can go to work, making more money. You want passive income, and it takes upfront capital. More than that, you can tuck away the extra to upgrade your lifestyle later.
People often think that wealthy individuals are only those in designer clothes and living in luxury homes. You can also have that life freedom, on a smaller scale without all the bling. Just be sure not to spend more than you bring in or you will build up some debt that must be paid back.
3. Use a Monthly Budget
Managing finances is a problem that many individuals struggle with, and it keeps them in bondage to the system. The financially free are responsible, and they manage their finances down to a penny. Having complete control over finances means that there is always enough money to fund your lifestyle, and this is done by managing finances through a detailed budget.
Do you believe that budgeting is only for those that are frugal? Think again. People that have a lot of money use budgeting, which is because financial freedom is one of the things that wealthy people have. Budgeting helps you stay on top of your expenses as well as your sources of income. You can use the budget you have created for making important financial decisions. It may be best to refinance your mortgage, open a savings account, or pursue other activities that will give you the most leverage with your budget.
4. Prioritize Saving
For such independence, you would require money in your pocket to live your life and beyond. You can have multiple sources of earning but would have to retain them by having an effective savings plan to remain independent.
Make taking money and setting it aside a priority by paying yourself first. By budgeting, you know what needs to be taken care of in order to live, but first, take a little right off the top of this income. This is not in order to have money saved in preparation for a big buy but in order to give yourself the freedom of doing as you want in the future.
After you start paying yourself, you need to focus on paying off all your debts, and everything else is towards paying your fixed expenses. Then you’ll come to a tipping point where you have enough savings that it makes sense for you to leave your job and gain that freedom.
5. Work Hard and Smart
If you do not inherit enough wealth to live freely, then you have to make it. Today, there are many ways to make income that will continue to flow to you passively. In addition to having a job or career, you can start a side hustle to supplement your income.
Determine what your talent is and earn money on that as an alternative. Use the money you earn and invest it in order to earn income, and then, in turn, create something that generates money for you, like writing a book or engaging in social media business, maybe even property income. Just earn money hard in order to gain freedom later on in life.
Achieving independent wealth is not a destination but a lifestyle. The key is to create enough wealth to afford your lifestyle and then achieve and maintain it. By doing the above steps, achieving independent wealth becomes possible, and then enjoy the freedom that comes with living the life you want.