Check out 6 ways to achieve financial independence - Smart Updates
Financial independence means
you're never going to be broken. Whenever you need money, it's easy to make it
available. Even if that is not the case, you can take care of yourself and your
family without having to call your friends to lend you money.
For a country like
Nigeria, this is a little complicated due to a trendy economic slowdown and a
lack of a stable business environment. However, you have no choice but to be
financially independent. Jumia Travel, the largest online travel provider,
offers tips that can help you become financially stable.
Financial independence requires a disciplined
spouse/bae
If you have a spouse
that spends all your money on Indian hair, London bags, iPhones and the likes,
you will never be independent. All your money will be going to the upkeep of
your spouse and you will not have anything to invest. We are not saying you should
not spend but be reasonable with spending and get someone who is not too
demanding.
Live beneath or within your means
If you earn 20,000 as
salary and you are living in an apartment worth 500,000 and eating food worth
2,000 daily, you will never be financially independent. The rule of thumb for
financial independence is living within your means. Spend less even if you earn
more and make sure you invest.
Income is not wealth
That is one error that
a lot of people make. They think that the more they earn, the more they are
financially independent. Yeah, it's nice to get a high-paying paycheck. The
reality, though, is that you're still working really hard to make the money,
and yet you're still going to invest it.
You don't have anything
beyond your immediate salary. What will happen if you lose your job? Try to do
something outside of your job to make more money. Just ask yourself if you lose
your job, are you going to be stable financially? If your reaction is no, you
need to take action.
Fund your future
The future is very
important. You have to prepare for it, You should always save money to enable
you to deal with any unforeseen incident. Life is unpredictable. This
unpredictability makes it essential to save.
Be an investor, not a trader
A trader is someone who
wants to make a profit as soon as he/she can. They are never patient. If the
business is not doing well, they abdicate it and venture into another one. But
an investor’s plan is long term. They foresee a future of great profit and they
are very patient as they work to position the business to attain profitability.
So, be an investor, not a trader.
Diversify
A particular source of
income does not have financial independence until you diversify. Don't put all
the eggs in a bowl. Distribute that to another basket, and then you won't be
relying on a single income generator.
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