5 Steps To Attain Financial Independence

Money, Income, Wealth preoccupies people’s mind. You may wonder “How do I attain financial independence” – a question on your mind.

A lot of people are faced with this worrisome issue. The current economic situation is unpredictable. Meanwhile, I am here to present to you five steps to attain financial independence:

1. Recognize Your Primary Source of Income:You have to focus on your primary income stream. Get a job if you don’t have one. If it is a 10 hour/day job, you have to “work well”.

Be a good employee, work after working hours and maintain your integrity. You can gain bonuses, incentives and recognition from your boss as well.

Also, you can acquire additional certifications to boost your career. By showing your diligence, you can attract cash on the other sides, either from your employer or clients.

2. Save At Least 20% Of Your Income: Have a stockpile of cash in your piggy bank or your savings account and maintain a serious saving attitude with it.

You can save up more than 20% of your income if you so desire (You can increase your stake  if you know what I mean).

Financial independence generates from a strong savings attitude. You cannot attain financial independence when you spend 99% of your income.

3. Make Your Money Work For You: This is the part where you invest your money in another income stream to generate more money from you.

You can consider trading or invest in shares/stock. There are a lot of passive income streams that you can invest in, which could facilitate income generation for you.

Make your research before doing so. Although, I will advise you to consider blogging- it can generate more cash for you in the long run.

4. Acquire A Freelance Skill: Don’t just acquire any skill, but acquire money making skills. For example; web design, baking, graphics design, programming, etc.

You can join the freelance community while you maintain your current job status. Meanwhile, you have to make a schedule so as to organise your time-inputs with the skill.

According to US, Freelancer Union, “there are 53 million people doing freelance work in the US – 34% of the national workforce”. (Why not join them?)

5. Monitor Your Cash Flow: You need to keep track of your income so as to concentrate your time on the income stream working well.

When you observe that an income stream is fluctuating, you need to make research by finding out the cause so as to regulate the income stream.

Also, there is no limit to the number of income streams you can create. Auliq Ice once said “The secret to financial security is not to have more money, but having more control over the money we presently have.”

Conclusion

Attaining financial independence requires discipline, perseverance and control. Achieving financial independence could not be easier.

That reminds me of a quote by a professor during my University Days; “You cannot be richer than your employer”.

Why don’t you try out these steps on attaining financial independence?                      What are your thoughts?