How To Start Planning For Financial Independence - Make Money Online

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How To Start Planning For Financial Independence

You understand the value of becoming financially independent and appreciate that this is something we all should strive for. Unfortunately, you might not be in the right place to think about these things.

When you’re living from paycheck-to-paycheck and you’re facing yet another financial emergency, it’s hard to think of making a financial breakthrough. You never actually appear to be in a position to manage even the little things like earning more, spending less, and planning ahead for retirement.

Here’s the thing: nothing is going to change unless you change, and merely taking care of existing problems is not going to take you far in life. Unless you start envisioning a better life and taking the necessary steps to get there, you’ll be in the same situation next year. In fact, it might even get worse.

Here are five ideas to help you start thinking about creating a positive financial future:

1. Resolve any pressing financial problems.

It’s hard to think clearly about creating a better future for yourself if you have a pressing financial problem that needs to be solved right away. If you’re in this situation, you can get immediate financial relief by getting a personal cash loan. Look for alternatives to payday lending. Some allow you to borrow as much as $1,250. Besides relieving the pressure of your pressing problem, the benefit of monthly installment loans is that it’s easy to qualify. Moreover, you'll receive the money quickly and repayment terms are flexible. All you really need to qualify is a social security number, a checking account, and a verifiable income. 

2. Set clear goals on what you want in life.

Whether you like it or not, all your goals are tied to finances. Without the money to support yourself, you won’t be able to achieve much of anything. Even if your goals are completely spiritual, artistic, or athletic, you’ll need the money to travel to places and to get the guidance, mentoring, or coaching necessary to succeed in fulfilling your dream. This means that your financial goals are the gateway to any other big goals you’d like to achieve.

3. Start two savings accounts

You will need to start saving for two separate accounts: one, an emergency fund; two, an investment fund. Having these two types of saving accounts will automatically create a positive attitude about money matters. You know you’ll be fine should anything unexpected happen to you and you’ll feel good about building a better future. Make contributing to savings as important as paying your bills.

Since it can be difficult to save for two accounts simultaneously, start with building an emergency fund. The biggest advantage to having an emergency fund is peace-of-mind. Instead of panicking when you’re faced with a sudden expense you can’t pay, you’ll have the money available to take care of the situation. After you have built up a well-stocked emergency fund, you‘ll have learned the art of saving. It’s now time to open up another savings account to put aside money for investments.

4. Build Multiple Income Streams

You'll need more than a single stream of income to achieve financial independence.
Here are four reasons why you can’t rely on a single source of income to build wealth:
  • 1. Relying on your job alone as your source of income is perilous. The company you work for could go out of business or you could lose your job.
  • 2. It will be difficult to save for an emergency fund and an investment fund if you don’t have surplus income.
  • 3. You won’t be able to pay down all your debt with just a single source of income since most of your earnings will go to cover your cost of living.
  • 4. It’s hard to develop an entrepreneurial mindset if you’re always struggling with insufficient income.
5. Live below your means

After you start following this simple plan, you’ll experience a new level of abundance. You will be bringing in more money from multiple streams of income, you’ll worry less because you’ll have the money to take care of any emergencies, and you’ll feel more hopeful because you’ll be building up money for investments. At this stage, it’s easy to be tempted to buy more stuff or upgrade your lifestyle. Unless you also learn to live below your means, you’ll jeopardize your chances of moving toward financial independence.

This is a simple plan that will lay the foundation for financial independence, and it will work because it’s easy to follow. Beyond this plan, you’ll have to focus on increasing your financial literacy so that you start investing wisely.
How To Start Planning For Financial Independence How To Start Planning For Financial Independence Reviewed by Jhon on 9:00 AM Rating: 5