What Does Financial Independence Really Mean?

Surely it is very important for you to be independent in many areas of your life. And one of the most important and that has more influence on your quality of life are personal finances.

Financial independence is a goal for which any person must strive to achieve. There are numerous advantages and improvements for your quality of life that have to be financially independent.

You want to be able to depend solely on yourself, free from the decisions of others as much as possible.

But what does it really mean to have financial independence? I will not take long to answer this question that I ask you. Financial independence means having no commitments.

No commitments = Financial independence

No commitments = Financial independence

Not having commitments and, therefore, being financially free means not having to pay the car loan or credit card credit every month. You are free of all this because you have no financial debt behind you.

Not having commitments and, therefore, being financially free means that you are not afraid of being fired from your job in case you cannot pay your bills. You are free because you have saved an emergency fund that will cover all your expenses for one year.

Not having commitments and, therefore, being financially free means that you do not have to have a life as your parents tell you, which are the ones that pay all of your expenses every month. You are free to live life as you want, and not as your parents want, since you don’t need any financial help .

Not having commitments and, therefore, being financially free means not being afraid to open the mailbox and pick up the mail. No more sleep because of the stress of not knowing how to make ends meet. The end of having to endure day after day with the intransigence of your boss is over. It’s over to have a job you hate .

Financial independence means that you are free from all this precisely because you no longer have commitments that you must meet if or if. The only commitment you will have when you have your financial independence is with yourself. You will be the one who chooses your path without anyone’s influence.

What to do to achieve financial independence

What to do to achieve financial independence

Ok, this all sounds very nice, but what do you have to do to eliminate all your commitments and achieve financial independence?

Well, it’s also up to you to fully achieve financial independence. Not from your boss, not from your parents, or from your partner. Only from yourself and nobody else.

The key to achieving financial independence and that is something that is completely in your hands is to start paying attention to the way you spend your money .

When you have gone to the supermarket to make the monthly or weekly purchase, then look at the purchase ticket and what have you spent the money on and think, everything you bought was really necessary?

When you make an unusual purchase such as a book or a technological gadget, ask yourself a few hours after returning from the store if that purchase was necessary. If you could not live without it.

Not only in your purchases is the key to achieve or not financial independence but in other very everyday aspects.

  • Do you use energy saving light bulbs in your home?
  • Are the windows not properly closed and allow the passage of air which forces you to have higher heating?
  • Do you use the air conditioner at a very low temperature?
  • Do you drink coffee in a bar before going to work when you can have it for free at home?

You make these kinds of decisions every day. And not only once or twice, but dozens of times even if you don’t realize it.

That is why it is very important that you begin to be aware of these small decisions in which you choose to spend your money . Have an eye on them and completely eliminate those that are not really important to you.

Be honest with yourself because most of these actions are not important and you can live without them without problems. And try to eliminate it for a few days to see what happens. You will always have time to recover them again. You will see how you will not return to any or recover very few.

Perhaps you expected a magical or very complicated and complex method to start your path to financial independence. But it really is that there is no more.

The first and most important step is to be aware and control your daily spending decisions.

The first and most important step is to be aware and control your daily spending decisions.

Over the weeks and months, you will realize that the money at the end of the month in your checking account is getting bigger. That it doesn’t cost you so much to reach the end of the month.

Now is when you realize that you are on your way to your complete financial independence.

Because now you have money left over to save a little more each month , to allocate it to a savings goal you have or to make an extra payment of some debt and thus be more financially free.

So, little by little, you will eliminate your debts, create an emergency fund, control more and more the payment of your bills and day by day you have the closest financial independence.

And remember that it all starts with the small decisions you make every day. Stop spending your valuable money, the one that costs you so much to earn, on unimportant things that do not bring you closer to your financial goals.

Direct these actions to important things, avoid these expenses and you will be closer to financial independence and your freedom.

Leave a Reply

Your email address will not be published. Required fields are marked *