Being financially independent is everyone’s dream, as no one in the right frame of mind would desire to live a life of insufficiency or discomfort. There is no limit to what you can achieve if the rules guiding personal finance are strictly embraced. Your determination towards achieving this financial breakthrough and the duration period it takes solely depends on the strength channeled to it. You are not financially independent when you earn income from your job until you are stable enough to stand on your own without financial support from anyone.
How soon do you want to attain the objective of being financially independent? First, you must have either a short-term or long goal and necessary plans to put in place how you intend to make your dream a reality. The more energy you put into achieving more in some year’s time, the smoother it becomes to get into financial stability. The non-negotiable part that needs to be worked on is the constant saving from the income you earn monthly. For example, let’s say you earn $2,000 annually, if you’re aspiring to achieve more within a short period, you can raise your savings to about 70% of your pay, which is $1,400, While you are left to spend $600 for other expenses that may arise at the end of five or ten years, which may vary on choice; it adds up to a significant amount that runs to about $7000 and $14,000, respectively.
In addition, how effectively you can plan out your savings and budget and strictly adhere to it without compromising will undoubtedly affect how many years it takes to become financially independent. Some of the ways to keep you on track at getting financial independence for a few years will be discuss
- Budgeting
It doesn’t mean you should squander the money you get on merriment, that one can come after you must have attained your purpose of saving. What you do here is to settle yourself first with a certain amount saved up somewhere before considering other expenses such as bills after receiving your payment. When you do so, you’re paving the way for a financial breakthrough.
- Track Your Expense
If you don’t organize and monitor your expenses, whether they are your needs or wants, you may be far from achieving financial independence. Whenever a craving arises, carefully consider whether it is worthwhile to spend money at that given time. For everything you purchase, be accountable for it.
- Goals
It could either be a long-term or a short-term one. A short-term goal of saving spans through a period of 5 years or 10 years, while the long-term goal could be 20 years and above; extending through the retirement stage. When you have a goal you set to achieve, it wouldn’t be difficult setting out strategic methods. The goal prepares you for future achievement and what you stand to gain.
- Investment
Investment is a very vital aspect of financial freedom. Investing in Real Estate is one of those.
- Side Hustle
Aside from our mainstream income, getting other jobs that would complement and support minor needs is necessary. If you must be financially independent, it is unavailable to depend on a paycheck alone, even when you get a high monthly payment. Your side hustle could either be a passive or active means. An example of active income is your salaries and other allowances, while passive income is those earned through interests, dividends etc.
- Settle Debt
If you must work towards gaining financial independence, the debt must be first eliminated. You can not save up, whereas there are piles of debt needed to be settled. Debt gets you choked up but when it is settled, you’re good to go.
In conclusion, there is no limit to the number of years that you can gain financial freedom as long as you stick to the habit of budgeting, and commitment. It aids the process faster than you can imagine if you don’t compromise. Some of the things to help you are budgeting, settlement of debt, investment, tracking expenses, and so much more would help you.
Frequently Asked Questions:
- How many years does it take to be financially independent?
There is no particular year per se; it all depends on your attitude and the commitment you give to the act of saving up for the future.
- What are some ways to achieve a financial breakthrough?
There are a couple of ways to gain financial independence: investing, having a goal in mind, budgeting, monitoring your expenses, etc.
- Is it essential to have a side hustle to gain financial freedom?
Yes, it is. If you continue to depend on salary, it would be seemingly difficult to crush your goals of having a fulfilled life.
