Financial independence is a goal of just about anyone’s, but getting there is often far easier said than done. Defined by Investopedia as a program of extreme saving and investing to enable someone to retire at an age far earlier than traditional budgets and retirement plans would dictate, often requiring you to dedicate around 70% of your income to saving and, as such, entails a thorough, detailed and rigid financial plan.
With that in mind, today we’re offering up 3 important steps you need to follow to get closer to achieving financial independence this new year, with a range of tips on budgeting, saving and income supplementation to help you get your finances in order and, ultimately, closer to hanging up your work boots.
Be realistic with your goals
Realism can often be the biggest enemy of anyone dreaming of financial independence as, upon working out the required extent of their savings plan and timescale, many reduce the ideal to exactly that – a dream.
To combat this, it’s vital you’re always realistic with both your plans and your expectations. Financial independence isn’t something that’s going to happen overnight and, depending on your income, a substantial monthly saving plan isn’t going to be sustainable in the long-run. For many, these facts alone are enough to make them give up on financial independence all together.
Instead, focus on some carefully planned and attainable goals, as this can often be enough of a motivating factor to keep you going. Although putting aside 20% of your monthly income isn’t going to get you to financial independence within the year, it’ll get you a whole lot closer than trying to save 70% and giving up by month 2. The trick is to see each month as a stepping stone towards that ultimate goal, as with this mentality you’re more likely to stick to your savings plan and, as such, be that much closer to the long-term aim – even if it is slightly further away than you may have hoped.
Always look forward on the career path
Of course, the higher your income, the more you’re able to save. With this in mind, be sure to always stay looking ahead on your career path, striving for that next promotion in order to fast-forward your progress towards financial independence.
To do this, ask yourself in which areas of your current job role you could improve and take the necessary actions to address them. Whether its taking an online course to sharpen your skill set in-line with the latest in industry best practice or simply making an extra effort to appear more enthusiastic or professional in the workplace, identify what’s in the way of that next pay rise and do whatever it takes to tackle it.
Supplement your traditional income
To really fast track your way to financial independence, consider combining an increased career focus with an additional means of income.
When armed with the right know-how, forex trading can be the perfect way to earn a little extra cash to help move those savings forwards. Of course, with the possibility of big wins comes the possibility of big losses, so it’s important you fully learn the market and gain some invaluable experience on demo accounts before you start trying your hand in a live forex environment.
There’s a whole range of educational resources to help you learn forex online, as well as virtual and real life trading courses where you can learn from industry experts. Of course, you’ll need to be willing to put the time and effort in to properly learn the craft, but the payoff could be well worth it by projecting you far closer to your dream of financial independence this year.
Achieving financial independence is no quick or easy feat, but by taking the right steps this year, you’ll find yourself closer to financial independence than ever before. For more information on how Learn to Trade could help you on your way, why get in touch today?