Do you want to have financial independence? When it comes to financial tips, they are as “profound” as the tips are to lose weight.
To lose weight, all you need to do are two things. Eat less and exercise more.
It's that simple.
Following these tips is not as easy as they sound. Most people can follow them for a few days or weeks, but then give up when it starts getting hard or life hits them. That is exactly the time they should dig deep and push through it.
Becoming financially free or have financial Independence, you need to follow five simple tips. These tips are easy to say but much harder to put into practice.
Obviously there is much more to these tips to adequately do them but, this will be a start for you down the road to become financially independent.
Many people ask me about my financial independence tips for their readers. I am glad to share my tips because I am bless to have financial independence and it is my hope that many others do too.
5 Steps to Financial Independence:
- Learn how to make more money
- Spend less money than you bring in
- Save more money for investing in rental properties
- Invest your money in passive income
- Give your money away to help people
1. Learn How to Make More Money for Financial Independence
Everyone would like to make more money. Even though it is easy to say “Make more money” it may be hard for others to actually do it. You may be working 50+ hours a week, have a spouse and kids, responsibilities, and have little time to make more money.
The key to making more money on limited time is not to get another job. That is time spent that you don't have. How about making money while you sleep, are on vacation, or playing with your children? Wouldn't that be amazing?!
It is actually possible to make money while not working. This is called “Passive Income”. It is not rocket science or difficult to do. You just need to put your effort and time into something that will continually make you money.
Here are some examples: write a book, start a blog, start a podcast, invest in real estate rental properties, create an online course. All of these are examples of things you can do in your spare time.
Once you have the book published, course created, or rental property purchased, these assets work for you. It is amazing not having to work for money ever again. Not having to work is financial independence.
2. Spend Less Money for Financial Independence
Living paycheck to paycheck is a horrible stress on you and your family. Many people in America increase their standard of living when they get a raise in income from their job.
Also, many people actually go into debt each month because of their spending. This habit needs to stop if you want to be financially free.
Look at your credit card statement at the end of the month. What are you spending your money on that you could do without? Are you spending too much money eating out instead of eating at home? Are you enjoying too many entertaining events, shows, or movies?
Is your $125 cable TV bill each month really worth it? Are you spending lots of money on interest on your credit cards? Go through your spending each money and cut all that you need to to actually spend less money.
I personally saved $8000 a year by using Medi-Share instead of an insurance company.
3. Save More Money for Financial Independence
Saving is a lots art in today's America. We spend what we make and hope we will have enough money each month. You must save money if you are going to get ahead in life.
There is a saying “Cash is King” and it is completely true. If you have money saved up, you can buy things much easier and cheaper than if you used credit.
By saving money, you will have: 1. an emergency fund for rainy days 2. money for future investing 3. a discipline of not spending your money when you make it.
Saving money will also allow you to not go into debt. To have financial independence, you can't have bad debt that takes money out of your pocket each month. Debt is the biggest killer of wealth and waste of your money that you can ever spend it on.
Paying interest on money borrowed is exactly how you keep yourself from being rich. This is because bankers are rich because they take your money in the form of interest and line their pockets with it.
Interest is only good if you are receiving it, not paying it.
4. Invest Your Money for Financial Independence
Get a return on your money by investing it in more than just a savings account. Ideally, you will invest in something that will do one or both of two things: gain in value and make monthly income.
If you invest in the stock market, make sure you find a stock that gives dividends that will put money back in your pocket without you selling the stock. If you buy a rental property, make sure you make at least $250 a month in passive cash flow every month.
The rich use their money to make money. This is how they do it. They buy assets that make them money every month. A rental property is an asset that makes money every month.
A new car you drive is not an asset because it does not make you money. Focus on buying assets that put money into your pocket every month.
All throughout my blog www.masterpassiveincome.com, I have loads of information on how you can do just what I have done.
Anyone can become financially free with rental properties. It is not rocket science, nor is it hard to do. It just takes having someone show you how to actually do it.
I want you to be financially free. Take my online course on Investing in Rental Properties so you can start your business and live the life of your dreams.
5. Give Your Money
Everything we have on this earth is a gift from God. Even having financial independence.
We cannot serve two masters and we must chose between God or money.
By giving, we are also having faith that the Lord will provide for us. Our faith rests on Him to provide for our needs just like He says He will. Like how the birds of the air are taken care of by God. We, who are much more valuable than the birds will be taken care of as well.
Lastly, we will not have faith in ourselves to make or keep money. What good is it if we store up millions of dollars but requires our life the next day? Good for nothing. Don't have faith in yourself, have faith in the Lord.
What are your thoughts about financial independence?
Will you become financial independent?
Is your process different, the same, or other?
Leave a comment below.
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