Financial
independence means that you will never be broke. Whenever you need
money, you can easily make it available. Even if this is not the case,
you can take care of yourself and your family without any need to call
on friends to lend you money. In a country like Nigeria, this is a bit
difficult due to the trending economic downturn and the lack of a stable
business environment. Regardless, you have no choice than to be
financially independent.
Income is not wealth
This
is one mistake many people make. They think the more they earn, the
more they are financially independent. Yes, it is good to have a
high-paying salary. However, the truth is that you are still working
very hard to make the money and you are yet to invest it. Beyond your
immediate salary, you do not have anything. What happens if you lose
your job? Try to do something outside your job to earn more. Just ask
yourself if you lose the job, will you be stable financially? If your
answer is no, you have to take action.
Financial independence requires a disciplined spouse/bae
If
you have a spouse that spends all your money on Indian hair, London
bags, iPhones and the likes, you will never be independent. All your
money will be going to the upkeep of your spouse and you will not have
anything to invest. We are not saying you should not spend but be
reasonable with spending and get someone who is not too demanding.
Fund your future
The
future is very important. You have to prepare for it, You should always
save money to enable you to deal with any unforeseen incident. Life is
unpredictable. This unpredictability makes it essential to save.
Be an investor, not a trader
A
trader is someone who wants to make a profit as soon as he/she can.
They are never patient. If the business is not doing well, they abdicate
it and venture into another one. But an investor's plan is long term.
They foresee a future of great profit and they are very patient as they
work to position the business to attain profitability. So, be an
investor, not a trader.
Diversify
A
particular source of income will not bring financial independence until
you diversify. Do not put all your eggs in one basket. Distribute it
into different basket and soon you will not rely on one income
generator.
Live beneath or within your means
If
you earn 20,000 as salary and you are living in an apartment worth
500,000 and eating food worth 2,000 daily, you will never be financially
independent. The rule of thumb for financial independence is living
within your means. Spend less even if you earn more and make sure you
invest.
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