How to achieve financial independence?

In the 21st century, many people, especially teenagers, want to become financially independent; they are just thinking about it and not rehearsing. You may have seen many youtube videos before reading this article, and they will not work for you. But I will suggest a reasonable way to pave your way to financial independence that will indeed work for you despite the difference in your age.

You may be discouraged by your self-made assumptions that you don’t have sufficient money, you do not have any support, and so on.

Let me tell you, many people in history became millionaires without any social and financial support. And you only want to become financially independent and now think that is difficult for you? Not!

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Prepare yourself for the new phase of your life;

First, you should all ask why you want to become financially independent. This way will answer you how. The answer to your why will decide the path toward financial independence.

Please make a list of your answers, read them daily, motivate yourself, and you will do with the first step of this path. Because your mind is now ready to make your financial independence, it will give you a new point, a new way towards your journey every day.

Side hustles for Financial independence in 2023

As time passed, trends were changing within time; before Covid, 19 people earned and saved, but now it’s 2022 and 2023, and upcoming trends are changing. The covid-19 pandemic creates awareness in people to have other ways to become financially independent.

Here are some given side hustles which help you to become financially independent.

• Caregiving roles
• Freelance gigs
• Micro jobs
• Online tutoring
• Rental income

If you are not doing anything or not earning a single penny, you can choose anything according to your taste mentioned above.

There are four proven steps by which you will indeed become financially independent.

1. Analyze your goals

Analyze all of those assets and income sources that you adapted. What do you have? How much do you want money to achieve your financial independence? And finally, write down your monthly and yearly income. Calculate the necessary payment to fulfill your needs and how much you waste on harmful activities.

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Here I want to clarify a point financial independence is not about start earning money, but it’s all about having sufficient funds to pay your bills and adopt a good lifestyle for the rest of your life.

2. Gain enough knowledge about financial independence

Educating yourself to create different ways to save your income would be best. In the age today, every successful person even he had an income resource. Whatever!! They continuously explore different ways daily to save as much as they can.

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The best way is that read books as much as you can. Some book suggestions are given below.

• Rich Dad Poor Dad by Robert T.kiyosaki
• Money: Master The Game by Tony Robbins
• The Barefoot Investor by Scott Pape
• The One-Page Financial Plan by Carl Richards.
• The Intelligent Investor by Benjamin Graham
• The Little Book That Beats The Market by Joel Greenblatt
• The Millionaire Fastlane by MJ DeMarc

3. Savings

Now it’s time to save from your monthly income. It helps you to spend money according to your needs and save some income for future needs.

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Different types of savings are known, like automated savings which are much more beneficial than other ways.

But here is also some tips listed below for you to save income.

• Cut your Netflix subscription
• Reduce your debts
• Try to avoid smoking and club
• Leave fancy food, cook at home and live a healthy life
• Say goodbye to every monthly sales shopping

4. Invest

After following all these tips, you have done with 80% of financial freedom. Now it’s time to take a more significant step: invest in fulfilling your long- or short-term goals. It seems risky but very profitable if you succeed in this step and trust it will be a life savior for a lifetime.

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You can invest in the following;

• Small business
• Trading
• Home ranting
• Stock market and so on

Conclusion

Take a look at all your finances. As I mentioned above, spend your money only on your needs, not on time and money-wasting things.

Financial independence is possible only if you save 30% of your monthly income. Write down how much you spend and how much you keep in your diary. Try to hold in all of these.

Invest in profitable businesses or start any side hustles which give you profit for a lifetime.

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Prepare and motivate yourself that you can do anything. Many factors around us demotivate us, especially those people who can’t do anything in life. So your choice should not be like those. Instead of this, make yourself proud.