Genesis 13:2, ESV: “Now Abram was very rich in livestock, in silver, and in gold.”
Virtually all the millions of men and women who started with nothing and later became rich normally take some conscious steps to attain their heights. The MacMillan Dictionary defines financial independence as the ability to make financial decisions and live your life free from the control or influence of other people.
Below are some of the ways to financial independence as offered by Joe C. David, author of “Be Your Own Boss.”
- Condition your mind and make a decision that you are going to become financially independent: Poverty is an issue of the mind, and so also is being rich. You become poor or rich depending on where you have conditioned or anchored your mind. You fail or succeed first in your mind. As a result, you must condition your mind that you must succeed, otherwise, nothing you build on a shaky foundation will stand. Your mind must have a solid foundation of sound future and success. Make a genuine decision that you become financially independent.
- Set a goal and remain focused: Goals are like guideposts to your destination. They make the journey easier, lighter and faster. Until you set a goal, you will never leave where you were to where you ought to be. Set a goal to achieve a certain amount of money by a certain date. If the date is three to five years away, set some goals of one year, six months, one month and so on. The smaller and tighter your subgoals, the more disciplined you are at achieving each of those subgoals, the stronger person you will become and the more likely it is that you will achieve not only the set goals, but you will exceed them ahead of schedule. Always keep the goals in view where you will always see them.
- Make detailed monthly financial plans: You need to make detailed monthly financial plans of how much you are going to earn, what you are going to achieve, and how much you are going to save. It is not enough to make the plans; you must stick to them. The ability to plan your work and work your plan is the core skill of success. Anybody can make good resolutions but the ability to carry out your resolution is the mark of character.
- Spend less than you earn: To become wealthy, spend 10 to 20% less than you earn every single month. According to Parkinson’s Law, expenses rise to meet income. You succeed financially to the degree to which you break Parkinson’s Law. You do not allow your expenses to rise to meet your income, especially as your income increases. Instead, drive a wedge between how much you spend and how much you earn. And if you put the wedge amount away, you will save 10 to 20% of your income throughout your life. This will absolutely guarantee that you retire wealthy.
- Save and invest: Carefully save and invest money that you are putting away. Remember, the first half of becoming wealthy is to earn the money, but the second half, the most important half, is to hold onto it once you have earned it. Spend at least as much time thinking about how to deploy your money as you spend earning it in the first place. All serious money is careful money. All long-term monies are conservative money. All true wealth is based on very careful thought about the correct deployment of the funds in the first place.
- Study, research and investigate financial opportunities: Do not rush into an investment of your money. Study, make research and investigate financial opportunities carefully. If the investment sounds too good to be true, it probably is. Especially, avoid any kind of “get-rich-quick” scheme. This is the age of instant this and instant that. Likewise, many are preaching the gospel of becoming instant millionaires. There is nothing like such scam busters, beware! Work for your money. It is more dignifying and always pays off. Don’t look for easy and cheap money or wealth at any time. Be hard-working.
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