ABC’s to Financial Independence

It’s funny how a lot of people will excitingly raise their hands to the question of..

“Who wants to be a millionaire?” 

..but only a few (and some will even hesitate) wants to pursue the necessary work to achieve financial independence.

What then is financial independence?

A lot wants it but only a few clearly defines what financial independence is for them. That is why, most people end up quite unfulfilled in their (specifically) financial goals.

Now, let’s define financial independence in this simplest form. Let’s imagine that we are shopping in a department store. Look here, look there…and voila! There it is, the item that you really want. Pick it up! Disregard looking at the price tag. Hurry! Go to the counter! Pay!

How do you feel?

For some, it will be horror. Why? What if they don’t have enough cash on hand or it’s another expense on top of the piled up loans and debts they have?

But going back to the scene… If you have the money to spend and at the same time the money set aside for savings… Then it will surely feel great. —That my friend, is the feeling of a financially independent person. The person can afford all the best things in life –everything that one really wants for himself/herself, for the family, and even in fulfilling one’s passion and doing charity works.

How can we become financial independent then? First. Decide. Then the next steps will flow just like water.

Anyway to make things systematize. There are 3 ways or what we call the ABC’s to financial independence:

1. A financial goal (have it)

Start with a list of things you want to achieve financially. Try to browse over your bucket lists —I bet majority of what’s in your bucket list involves spending money. Some people have travel as their main goal or for some especially those who are building a family –kid’s education is their main priority.

2.Basics of growing money (know it)

Understand how many works. Take note of the role of interest rates or you can attend seminars about financial education. Invest in knowledge first before getting into financial investments.

3.Create a Financial strategy (do it)

Just like sports –if we want to execute our financial goals –we need a strategy to surely win. To better help you create a strategy, you may want to look at blogs or articles about what best investment to choose from that will match your financial goal.

See! It’s as easy as ABC… It’s simple and basic. What’s important now is to decide and get started.

—

This article is written by Financial Trainer – Leah Pauline Bacalso. Psychologist by profession, business person by heart and also a personal finance advocate.