Money & Finances

7 Tips Towards Financial Independence

Who doesn't want to be financially independent?

I think it's safe to say that most of us would love to be! I know I would love to be completely financially independent before retiring, but the reality is most of us won't be.

Even though this may be the case, there are still some things you can do to speed up becoming financially independent:

• Don't buy what you don't need. Or don't buy crap. It's easy to just buy things when we see them just because we want them, but if you can get into the habit of asking yourself if you really need it first, you're on your way to financial independence.
   
• Pay off all your debt. Getting your debt paid off so you can use your money for what you want to is crucial to becoming finanically independent.
   
• Put a percentage of each paycheck into a savings account. Even if you can only afford a few dollars each paycheck, it all adds up.
   
• Don't listen to the gurus who try to scare you into believing that you need 3 million dollars before you retire. Figure out your own number as far as what you think you'll need to live comfortably during retirement.
   
• Don't worry about impressing anyone. Who cares if your neighbor buys a new car every year? Your neighbor is probably in debt up to his eyeballs! It's not necessary for you to have a big house, and a new car every year just to show that you too are successful. Who cares what others think?
   
• Make a few risky investments when you're young. When you're young you can afford to take a few risks.
   
• When you get close to being financially independent, then start being more conservative with your investments. This way, you won't lose the money you've got squirreled away for retirement.

For more ideas on saving money and becoming finacially independent see 401K vs Roth IRA Retirement Accounts.