Top 7 Steps To Financial Independence
Everyone wants to feel the spirit of freedom and not think about how much money is left before the paycheck.
These simple rules will help you not to depend on your employer and the help of loved ones. Know the details of any bank from the Bank of America routing number.
The Top 7 Steps To Financial Independence Are:
1. Determine how much to save.
Calculate how much money you need so that you do not depend on loved ones or work for a month.
Multiply the amount by six: this money will be a financial pillow for six months, which will help you if you get sick or get fired.
Stock may be less: think about how much money you need to feel confident and comfortable.
2. Take control of your finances.
If this is not done, there will be no financial freedom. Even a high salary can be reduced in a couple of days.
To control money, you need to start saving and stop impulsively spending, optimize loans, or it is better not to take them at all, unsubscribe from all advertising mailings so as not to click on links and not hang on store sites.
There is nothing difficult in maintaining a budget either: you need to create a notebook or an application and mark all income and expenses there in order to better understand the financial picture. As a rule, spending, which is easy to refuse, is 10-15% of the total income.
3. Invest part of your income.
Western investors are advised to invest at least 10% of their income, but in Russia, the situation is different – in order to avoid risks, it is better to increase this amount.
You might not notice a 10% cut in the budget, but postponing 25% is much more difficult. Therefore, it is better to start with a small amount, gradually increasing it.
But first, check if you are a conservative, aggressive, or rational investor. Large banks carry out risk profiling of clients for free using a standard questionnaire and determine how much they are willing to take risks.
Such recommendations will help you build a strategy for playing the stock market or stock exchange.
4. Don’t fix all your eggs in one container.
It is not profitable to keep all your savings in one place. Let some of the money be kept in foreign currency, the other – on the credit card generator.
The third – in the shares of different companies. If the rate fluctuates, then the stock may rise in price – so there will be no big losses.
Many eggs, many baskets. How exchange-traded funds work
Not making a lot at once: beginners do not see all the opportunities and cannot realize them.
Everything will come with experience. It is useful to talk to experienced investors, study the stories of successful people, and read thematic literature.
5. Invest in education.
The most valuable asset is you. To develop your skills and increase your value, you need to improve your skills: attend courses, watch lectures and webinars.
How much to save for a child’s education?
The money invested in training will pay off: narrow specialists are expensive. High salaries and fast career growth are far from all the advantages of a good education: you can share knowledge and earn advice.
6. Buy property.
Better to buy an apartment at the foundation stage. A small one-room apartment in a residential area is ideal for renting out: it is easier to find tenants this way.
The apartment will pay off for at least 10 years, but then it will start bringing in a stable income.
7. Start a business.
So the income will only depend on your business and efficiency. Of course, there are risks: the business may not “take off”, competitors will not give a sigh, people will not be interested in the offer and, as a result.
It will not be possible to turn in the advanced stocks. To prevent this from happening, you need not take risks, but listen to the advice of experienced entrepreneurs.
You need to invest time and energy in what can potentially make money. There is no reason to hope for non-working projects
It is unlikely that anything will change from expensive advertising or the different colour of the packaging.