Financial independence: to have enough income coming in every month from your investments, business, intellectual property, inheritance, invention(s), etc., to live off of. I’m not talking about being able to do this just because you have a well-paying job.
We live in a monthly billing society. You need a certain amount of cash to live comfortably. It’s been said that once we put away childish things, we’re ready to embrace the more financial aspects of being an adult. High on this list is how to accumulate a heck of a lot more tomorrow than we have today. I’m talking about how to do the right things to build wealth and achieve financial independence.
The single most important thing you can do to achieve financial independence is to start early.
1)Â Make Saving Automatic. Once you’re gainfully employed at a realjob you start socking away as much cash as possible. To make this process as painless as possible, set-up automatic payroll deduction. This way you won’t be tempted to binge shop, because it will put you over your monthly allotment for frivolity spending.
2)Start Accumulating Assets. Creating that first income stream may seem difficult, because, well, it’s the first. But if you can see your way through to creating that first solid investment vehicle, things begin to move down that track like a big self-propelled locomotion. When you start checking your bank account(s) and see your passive income growing, trust me, it will become a serious habit.
What kind of assets? Things like:
- An Online Affiliate Business
- Income-Producing Rental Property
- Dividends from Stocks
- Royalties from Intellectual Property (Design/Write/Programming/Inventions
- Fast-food Franchisee (or small auto garage)
- Pension
- Life Annuity
- Investing in Tax Liens
The above list show time-tested ways that others have achieved financial independence. The people who have succeeded in this arena are no smarter or different than you are. One thing they did have going in was believing it was possible. Then they took action. Is the above list not your cup of tea? Are you the type who likes to go your own way? Hop online and search for alternative investments?
My First Time
Many years ago, I was a salesman working in the industrial park area of town. The product was selling snack and soda vending machines. I would start each day calling warm leads from a shoe-box sized card-file. I would pitch local shops such as: hair salons; barbershops; industrial manufactures, you name it. We also placed ads in the local paper. Once a prospect visited, I and others would sell them on purchasing several machines and provide a location. One evening this I began talking with this African investor. This guy was sharp. He told me about McDonald’s and Home Depot and a few other companies — that were not yet household names. What sold me? A single comment from him. He said, “My friend, once you get going in this game, it’s better than sex.” I bought a few shares of a now well-known company. I did well. True story.
Peace of Mind
At the end of the day, we all want less stress in our lives. A lot of that bad tension in our lives is a result of doing things we don’t want to do but have to, because many years ago we didn’t set our lives up early enough. Having passive income hitting your bank accounts every month will allow you to only do things YOU want to do.
For you goal-setting fast-trackers out there who want to achieve financial independence a bit sooner rather than much later, I have a final question to ask you? Ever heard of the acronym F I R E or Financial Independence Retire Early? It’s all the rage. Wanna retire while you’re still in your 30’s or early 40’s? It’s definitely doable with the right planning and a willing partner. Read and know you can do something similar, but will you? Here’s to your independence.
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