Be it countries or people, achieving and maintaining independence has always been important.To be able to choose and do the things that you want is a great feeling. Circumstances are not always perfect and there is usually a price that one has to pay for this independence or freedom. Financial independence is perhaps the most important of all the independence we may want or desire. If a person is financially independent then he, or she, finds that life gives many more choices. It does not mean that everything is easier and there are no hurdles, financial independence allows him to take a risk and try out different things and most importantly it gives him confidence.
Financial independence means that you have enough wealth to live on even if you were not working. Suppose a person earns 100 dollars and his expenses are 90 dollars, then it does not mean he is financially independent. Yes, he is managing his living and other expenses, but if he stops working, this independence is gone. When we talk about financial independence, what we mean is that a person, even if he is not working does not have to worry about his finances. Suppose a person has invested in stocks and has bank FDs and gets a regular return from these to cover his expenses, then that person can be called financially independent. It is a subjective thing and someone earning a million dollar may not be financially independent, while someone earning much less can be financially independent.
To become financially independent one should take a look at the two things which are most important. Assets and expenses. We should try to accumulate as many revenue-generating assets as possible so that they generate more wealth for us than our expenses. Buying things like cars, houses, real estate can only be called assets when they generate wealth for us.
On the other hand, we should constantly try to keep our expenses down. Try to follow a simple lifestyle, which will help you in reducing the number of assets required to keep you financially independent. Keep these following points in mind to help you achieve financial independence :
Don’t treat your income as your wealth. Think long term, with inflation eating into our savings, you have to constantly be aware of your long term needs. Always keep an eye on your balance sheet. Profit and loss, assets and liabilities, to get a clearer picture. Always be on the lookout for new opportunities. People who win are mostly people who take risks. Learn more here. Try online trading with automated software like Bitcoin Trader, which has already made huge amounts of money for a lot of people.