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Home » Jobs & Money » Budgeting Tips & Debt Relief » Are You Financially Independent? You Could Be If You Follow These 7 Tips Towards Financial Independence

Are You Financially Independent? You Could Be If You Follow These 7 Tips Towards Financial Independence

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financially-independent-by-maessive.jpgWho doesn’t want to be financially independent?

Financial independence is a term generally used to describe the state of having sufficient personal wealth to live indefinitely without having to work actively for basic necessities. In the case of many individuals whose financial circumstances fit this description, their assets generate income that is greater than their expenses. To illustrate, a person’s quarterly expenses may total $4000. They receive dividends from stocks they’ve previously purchased totaling $5,000 quarterly, while also having an even more substantial amount of money in other assets. Under such circumstances, a person is financially independent.  Source

 

I think it’s safe to say that most of us would love to be!

Many of us (including myself) strive to be completely financially independent before retiring, but the reality is most of us won’t be.

Here are the 7 best things you can do to become financially independent, according to Frugal Dad:

  • 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.

 

More Tips For Financial Independence

Find even more ways to save money and become finacially independent here:

Financial Independence: The Final Stage Of Money Management

Learning From The Millionnaire Next Door

FInancial Independence: It’s More Than Just A Number

8 Paths To Financial Independence

12 Tips Toward Financial Independence

Why I Follow Suze Orman’s Advice

Regina
Regina

My favorite things to write about are topics that have to do with pregnancy, weddings, saving money, living green, and life with dogs. When I’m not writing, I love to spend time with my husband, read, create 3D artwork and Native American beadwork.

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Filed Under: Budgeting Tips & Debt Relief, Jobs & Money Tagged With: debt relief, saving money

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LynnetteWith input from Financial Advisors, (a Tax Accountant and an Investment Manager), I share helpful tips regarding money and finances -- including debt relief, insurance, budgeting, and investing for retirement. My goal is to help you save more, spend less, and invest for the future by sharing honest, tried & true budgeting tips and tools. When I'm not saving for the future and helping others save for theirs, you can find me at the corner of Good News & Fun Times as publisher of The Fun Times Guide (32 fun & helpful websites).

Lynnette: View My Blog Posts

AndreaI have been a certified tightwad striving for financial freedom since I became pregnant with my first child -- and I decided to find a way to stay home with him full-time. I enjoy sharing my personal experiences in my journey back to financial health and planning for a future -- which will include sending 2 kids to college and early retirement.

Andrea: View My Blog Posts

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