Reaching financial independence is an enjoyable challenge if you approach it with the right attitude. But you need to begin with 2 strong beliefs:
1. Financial independence not only can happen, it will happen!
If you invest a decent amount of money over a long period of time at a high rate of return, your future wealth is guaranteed.
2. Financial freedom is your choice only
If you reach financial freedom, it will be because of your choices, your habits and your behaviour. The large inheritance or winning lottery ticket will almost certainly not happen.
There can be no investment without saving. Proper saving means giving up immediate spending in exchange for future income. It’s partly about planning, but mostly about having the discipline to actually do it. To reach your ultimate goal of financial independence save as much as you can, as soon as you can, for as long as you can. Many people know this, of course but hey just have trouble doing it. The key is to not just make saving a habit. Make it a priority. Pay yourself first. Every first day of the month before you start paying others, set aside money for your future.
Start early is with an employer-sponsored retirement plan, where your contributions are both pre-tax and tax-deferred. If you don’t have access to an employer plan, use an individual retirement account. And if you can save beyond those limits, even better.
When you’re young and starting out in life, saving may not be a priority. When you get older and have kids and perhaps elderly parents to support, saving can be tough, too. But most of us could get by on 10% less than we’re living on today. If we pay ourselves that 10% first, it will make a world of difference 10, 20 and 30 years down the road. Look at your own spending and determine where you can downsize or cut back. Don’t tell yourself that you will start saving eventually, but start saving something immediately and then make it a habit.
Compounding the most powerful toll in investing, but it requires time. When it comes to saving and investing, starting early confers an enormous advantage. And age does not matter, it’s never too early or too late to begin.
Sven Franssen
Do you want to reach Financial Independence than contact me. Seek financial Tutoring/Coaching. I can teach or coach you on your personal road to financial freedom.