How to Become Financially Independent in Three Idiot-Proof Steps

How to Become Financially IndependentWho wouldn’t want to know how to become financially independent?  Doesn’t that just sound incredible?

Everyone dreams of the day when they can go to sleep at night knowing they don’t have to work the next morning if they choose not to.  No more whiny boss, worthless co-workers, long commutes … (this list could go on and on!)

Although many people think they have the solution to being financially independent, few of them really do. In fact as a species, we’re kind of dumb when it comes to money.

This is because most of us watch TV and read magazines that would have us believe there is a quick, lazy-person’s way to become a millionaire.

Guess what.  There ISN’T.  It actually takes work.  (Surprise).

At one time, people were content to go to their daily 9 to 5 jobs, come home, and spend a couple hours with the family before going to bed and getting up to do it all over again. Now, though, a great number of people just aren’t satisfied with that type of life anymore. They want to dictate when they work and even whether or not they work at all.

Moreover, the economy today is not exactly reassuring when it comes to job security.  Large companies that were once thought of as unstoppable have filed for bankruptcy.  And contract jobs have replaced full-time employment.

But none of this has to stop you.  There are still plenty of opportunities to make more than enough money just to get by.

If you are looking to can your boss and learn how to become financially independent, then you need to begin with these three steps toward that future.


Step 1 – Get Everyone On Board the Train:

You aren’t going to become financially independent by yourself. It’s just not going to happen. You need the help of your family and maybe even a partner or two to help you at least get started.

You should never quit your job without first gaining the support of your family for your quest for personal wealth.  Together you should both determine your retirement goals.  Since it is going to take some time to accumulate enough money to live without having a regular job, you are going to need at least some funds to support you and your family during your startup phase.

If you have a spouse who can continue working while you are forging your financial path, it is probably a good idea to encourage him or her to keep bringing home those paychecks. Keep in mind that groceries still cost real money and, if you have them, the government requires you to keep your kids fed. So, starting a business that could eventually make you independently wealthy might sound like a great idea; however, it only is if you have a good amount of savings to get you through the tough times.

If you don’t have a family, you should still seek the advice of your extended family members so they can support you as you work toward your financial independence. They probably have some good, solid ideas that will prevent you from going belly up the first few weeks of your new venture. You may have trouble seeing the challenges your new quest presents, but the objective eyes of your family members will likely see them quite clearly.

The best idea, if you can do it, is to keep your full-time job until you have enough accumulated wealth to quit. You can work on becoming financially independent in your spare time, which will allow you to keep the security of a regular paycheck while making progress toward your goal at the same time. Many systems designed to help you create independent wealth offer this flexibility, so before you jump into something that could bankrupt you if you’re not careful, consider being a little more cautious in your approach.


Step 2 – Take Control of Your Expenses:

Financial IndependenceYou will never become financially independent if you spend every single penny you earn. You are going to need startup funds to begin with, but your financial coffers will never be sustainable if you are spending more than you earn.

The less money required to live, the more you can invest in your future independence. This is another area where you will need to involve your immediate family members in your plan.

Tell them they all need to work together to stay within a budget that is created using family input. A budget is the single best way to determine where your money is currently going and where you can cut expenses to help you achieve your financial goals. Without a budget, you will find it difficult to accumulate wealth. With a budget, though, you can find extra cash to contribute toward your money-making system, thereby helping you reach financial independence earlier.


Step 3 – Invest Your Money the Right Way:

The key in knowing how to become financially independent is to find a system the makes your money work for you.

Millions of people have become millionaires by investing in the right stocks, bonds, properties, and more. These are legitimate ways to make money if you know what you are doing. However, most people jump into investing without really knowing what they are doing. This is why it is imperative that you get the proper education in whatever you decide to do with your money. This is the only way to reduce the risks that are inherent in investing.

You also need to be aware that you will never be able to eliminate the risk of investing entirely. If do decide to play the stock market or become a Forex trader, you need to be willing to take those risks. Only through education, though, can you completely understand the risks you are taking. Fortunately, in this area, there are many online education programs that can get you started in the field within weeks.

Even though there is no guarantee you will become financially independent through investments, it is probably your best opportunity. That late-night millionaire-in-minutes program you are considering? Not so much. Stick with what has worked for millions of people, be diligent about how you spend and invest your money, and you will be on your way to financial freedom in no time.


Related Posts:

1)      What Happens When You Don’t Reach the Max 401k Contribution – You Don’t Want to Know!

2)      Proven Tactics for Breaking Bad Spending Habits

3)      Great Investing Advice from Someone Other Than Your Brother-In-Law

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  1. says

    Great article! All 3 steps are important. Getting people on board is really helpful mentally. Taking control is the first financial step to understanding where your problems are and investing can do so much more harm than good, if you go about it the wrong way. Thanks for sharing!


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