Episode 1. Stages of Financial Independence
(I am compelled to ink down these series amidst realizing my dreams and managing life experiences coming my way. It is a series that will help youths who are trapped inside the ‘prison of their mind’ to regain their consciousness and put on the attitude of success. ‘Attitude makes the difference between success and failure’-John C. Maxwell. )
Financial independence typically means that you have enough money to pay for your expenses for the rest of your life without necessarily having to work full time. People have achieved this through many ways; by investing and saving for some time. Some have also resorted to building big businesses that run without daily supervision. Such businesses have seen them taste and enjoy financial freedom from summer to summer. I know you can figure out some of the hard rock entrepreneurs anyone on planet earth would wish to be their father if not them (now stop building castles).
Not only the wealthy can achieve financial independence, but anyone, yes anyone! However, it should be keenly noted that financial independence does not come instantly, halloo, you must work for it! However much you will cut your ears with a wooden knife, trying to run away from the reality, remember that shortcuts are only for a reason and for a season. Hard work pays, and only the tough survive. If you had a chance to step into a biology class, I guess you are familiar with Darwin’s Theory; ‘Survival of the fittest.' If not then probably you have heard a rumor about it.
At one point everyone, and I mean everyone had to depend on somebody, probably their parents. Before you realized that its public shame to let rest your mother's breast on your mannerless tongue in the name of sucking, you were already dependent. Therefore, no one unleashes such a miracle as becoming broke to rich in a snap. There are no ‘Niger’ tricks to financial freedom; you have to work it out yourself. This only comes in stages for ‘clean people’.
Stages of Financial Independence:
1. Stage 1. Financial dependence
We all begin from a point of dependence to a point whereby we can depend on our own. Therefore, this should not be a shame to you since you are finding your waymarks. It is just the beginning. You need direction just like a baby does. With time, expect to be thrown into the air and learn how to fly just like the birds do. However, independence is not automatic, do not be deceived. Despite age, few individuals will always want a contribution from somebody else pocket. This should sound shameful to some extent. Certain circumstances may force one to ask for a helping hand, but you will agree with me that this should not be a routine at least for ‘early birds.' This I call ingressiveness! I call it laziness! I call it lack of motivation! I call it lack of the right attitude!
2. Financial Solvency
This is where you start being independent. Learn to pay your bills, however, tough it may appear.. The problem comes when we realize that we can not do certain odd jobs, usually considered ‘dirty’ and not worth our time. Throw yourself into the world and get finances. Do not care about how little it may seem to be, do not mind whether if your expenditure overrides your income. It’s a try; it’s a beginning. Keep the fire burning. Big things start small.
3. Financial stability
Once you are a stable and up to date with your bills, try and save a little. Open up an account, whatever you may call it say a home bank, rainy day fund, lucky days savings, etc. You need the account savings. From this, you can say you are financially stable.
4. Debt freedom
Not all debts. Are equal in measure. Sit down and see your debts. Get rid of that debt that is not going to boost your finances in any way. Certain debts can be a source of victory. Also, ensure that you dump high-interest rate debts, scrap off debts that lead to assets depreciating. With this, you become debt free. Does it sound so? Yes, it is.
5. Financial security
Your long-term goal is to achieve independence by being in a position to pay for your daily expenses. This is only possible if you have enough investments to pay for them. This could be a step by step process. The first thing to do is to make sure that your basic living expenses can be catered for by your investments income. These basic needs are like housing expenses, food, transport, and insurance. Having reached such appoint, then you are at a high degree of financial security.
6. Financial independence
It will be big congratulations to you if your investment income can take care of your living expenses without any strain. In fact, you may opt to stop working. However, this is as per your wish. I call this financial independence stage.
7. Financial freedom
Here, you probably had life goals that you want to see come to a realization. This could be buying something, experiencing your life desires etcetera. Specify what your goal is. When it comes to your realization that you can fund your dreams from your investment income, then you are free indeed.
These are the stages towards achieving financial independence.Therefore, it is all in your hands to declare your financial freedom. Develop the right attitude and have the motivation.
Prepare for the next episode!
By : ginny grace
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| Grace Akoth @GinnyGinny5 ginnygrace |
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