Financial Independence or financial freedom sounds to many as a magic word. Something that suddenly happens when you win the lottery or inherit an estate from a distant relative you didn't even know you had.
The truth is quite the opposite. Reaching financial independence of financial freedom can be reached by working forwards it throughout your life. Where you'll get to this status in your 20's,30's or 70's is all dependent on you. Not luck.
We like systems or roadmaps because they give us a step by step process we can follow.
Here is the roadmap you should follow to reach financial independence:
Step #1: Gain financial knowledge - You can't make progress without some financial knowledge. The knowledge you need is not complicated to understand (Although this is what the financial industry makes us think), you just need to put in the time. With many of my clients, explaining the terms they need takes about an hour. You have that time to invest in your financial freedom, right?
Step #2: Design your future lifestyle - You can't make progress towards a goal without defining what that goal is. So, take the time to understand what's important for you in life. How do you want to live in the future 5,15 and even 30 and 40 years from now?
Write that down and commit to the things that are important for you. Once you have that clear vision it's easier to work towards that goal.
Step #3: Control your numbers - This step helps you measuring where you are right now in your journey towards what you defined in step #2 of the roadmap. You need to calculate your net worth, cash flow, and budget. I do that every month and recommend my clients to do the same. It gives you a clear understanding if you are making progress or not towards your goal. you can also see that if something doesn't work, you are able to change it.
Step #4: Build a plan of execution - Once you have all the info from the previous steps it's time to have a plan and execute it. You need to build this plan and define how you'd reach the goals you defined on step #2. If you defined well and have your numbers from step #3 support this, you are on the right track.
This tool will help you take the first step towards your desired lifestyle and financial independence. You'd be able to calculate your net worth easily and understand how far are you from your goals.
So, take responsibility and commit yourself to reach your life goals and financial goals.
It's easy to get caught and blame the world for whatever situation we are at.
However, if we take responsibility on our money and finances we are able to break out of old behavior paradigms that will lead us to a happier and more fulfilled life.