What is financial independence?
By: stubsy | Posted: 12th March 2007
Financial independence does'nt mean your a Millionaire it does'nt mean you own a Ferrari or a big house, what financial independence means is you earn more than you spend.
If you have financial independence you have financial security, you have freedom, you don't live from payday to payday with only your credit cards for emergencies, relying on your job to pay your bills. Financial Independence means you have money in the bank.
How can you achieve financial independence?
Any body can acheive financial independence it does'nt matter where you live what you do for a living, to acheive financial independence you need to earn more & spend less. Don't get into debt you won't realise how important financial independence is until your living of your credit cards struggling to pay your bills.
Financial independence is something everyone needs and should strive for, imagine you get bored of your job you want to retrain do something else with your life or you lose your job how are you going to get by with out that pay packet you've been relying on.
If you start relying on your meager wages you'll be trapped, unable to leave your job, you'll have no leverage to get yourself a better deal and your wages will stay meager. If you cut down your spending save more and start to create financial independence you'll soon discover wealth. Money you can invest in property, financial markets, you could learn new skills to get a better job or start your own business.
Heres how to acheive financial independence.
Reduce your debts, how can you reduce your debts? Get a second job or a better job, get an interest free credit card deal and put existing balances on that, each time the interest free period runs out look for another deal keep juggling it.
If you feel comfortable with it you could get a consolidation loan, you'd be better off with a loan thats not secured against your house, credit cards and loans are un-secured that means if you can't afford to pay them theres not much the lenders can do. If you can't afford to pay your mortgage the bank can take your house, as this is probable your biggest and most secure investment getting repoed would'nt be a good step on the road to financial independence or wealth, sleeping in a box probably won't be much fun either.
Don't borrow money, if you need to buy something, your car blows up or you just need some cash don't use a credit card try and make the money before you spend it.
Check out
my quick cash ideas
About the Author
Stubsy is an expert on debt and trying to make money from investing he is the webmaster of Wealth community
This article is free for republishing
Printed From: http://www.articlealley.com/article_137417_19.html
Back to the original article
Tags: own business, credit cards, financial security, millionaire, money in the bank, debts, ferrari, lenders, second job, free period, financial independence, emergencies, leverage, pay packet, consolidation loan, big house, financial markets, interest free credit, interest free credit card