Whoever said “money doesn’t buy happiness” probably never had enough money. On the other side of the spectrum, it’s a lot harder to dream of living a well-rounded life. Financial independence includes having enough money to take care of your living expenses without the need to work another day in your life. It’s the ultimate goal and, no matter where you are on your journey to freedom, here are notes to keep in mind.
People who have achieved financial freedom will tell you saving your money is not enough. Instead, it’ll benefit your pockets to find a way to have your money work for you to accumulate more wealth. Investing will also ensure that you have money set aside for loved ones in case of a rainy day and a little extra to dabble into if unexpected expenses peak their pesky behinds. It may also be great to diversify your investment portfolios to protect against inevitable risks.
Understand Your Net Worth
One’s “net worth” is the total of all their assets (financial and non-financial) minus the number of their liabilities. For one to grow their net worth, they must increase their assets and reduce their liabilities. The best way to follow your finances and monitor your net worth is through documenting your every money move on a spreadsheet or with an app. The more you get involved in managing your money, the better you can grow your net income with minimal external influences.
This next note is the most common when discussing one’s journey to financial freedom. To have money, in the long run, you must find ways to, well…make more money. A few great ways to consider earning more–although not easy to achieve–include asking for a salary increase, working a side job or gig and even getting a 401K employer matching.
Good luck on your journey to financial freedom! Choosing to read this article was the first big step!