Being committed to maintaining Financial independence - What do I personally follow?
While there can be a huge argument about what we call financial independence. It can vary from person to person but the core meaning would be somehow the same. For me, having a stable source of income, being able to spend money on our needs and desire, and reaching the point where we don't have to live penny by penny is what I call financial independence.
Achieving financial independence is totally possible but it's hard. Why? Mostly because our need also grows with our finance. So if we don't learn to limit them, there would not be any independence no matter how much we make.
Now, we who have to run a family or simply who need to finance ourselves and no one else to depend on need to be very clear about their financial status, expenses, and everything related to it. There are a few things that I always keep in mind so I don't have to face hustle managing the end meet.
Be clear about the number. How much do you spend, how much going on food, housing, kids' education, and entertainment; you should know the exact numbers. Let your family persons know about their boundaries too.
Address your financial fear and try to be free. Don't be fearful to spend a little more if you have a backup. You know what I mean. Like if you have some savings, you can buy a costly gift at the festival. There's nothing wrong with that. But be very clear about where the money would come from.
Don't live in debt. This is a big NO for me. That's the big reason why I still don't own any house by my name. I would buy a house when I would be able to. But taking a million-dollar lean and paying it for 15-20 years is not my thing. Also, I don't borrow any money from anyone but rather live on my own. It helped me to be more clear and free financially.
Start saving. There's no alternative to maintaining independence if you don't have any backup. It's hard to do so, I know. So, I opened a saving account and deposited as much as I can every month. It's nothing much but helps me to cover expenses, medical costs, and some emergencies as well.
Keep your money reproducing. Sounds silly but it's the truth. Only depending on a fixed income will not serve us in our retirement age. Invest your money in different things and keep a flow so you can have a good backup.
There are many small things I didn't add to the points like making a short-term strategy side by side with the long-term so we don't fall behind everyday costs. As I have said, financial independence means different to us but we need to be clear about what we are meant to achieve, and what our goal is. And we should work accordingly.
The world economy is changing, and we need to be very clear about our living situation and finance. Otherwise, in the future time would be difficult for us to survive.
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