At least six of the ten millennials believe they can achieve the American dream. For this young generation of Americans, the American dream is to own a home, live debt-free, retire comfortably and pursue your passion. This offers another perspective on the millennial mentality that is often criticized for their apparent indifference to traditions such as homeownership.
These goals can very well define what is financial independence. The term itself is subjective; everyone has their own interpretation of what it means to be financially independent. Nevertheless, knowing that there is a way out of the breed of nine to five rats in order to free you from incessant worries of money makes you work harder in the middle of crush student debt and fight against inflation.
Financial Independence as You Know It
"Fire, or" Financial Independence Retires Earlier ", is one of the key words this year.Because of the changing dynamics and increasing financial literacy, the move was adopted because the idea is quite simple.It looks like this: you can retire even before being eligible for retirement benefits ; in the end, you are striving to reach this point when money is not the ultimate solution of all decisions in your life.
Whether you are on FIRE or not, only you can define your financial independence, and it is up to you to reach this financial state of affairs by reviewing these important reminders.
Your # objectives for the future
Setting your goals starts with financial stability in a few years or so. This provides a clear picture, a mental map of what will happen, what needs to be abandoned and what to earn for a financially independent life.
With this visualization, mental preparation is less difficult because you are able to assign tasks or sub-objectives that can be methodically checked one after the other in your long-term program called life.
Your money, your rules
Living paycheck, pay check may as well be the opposite of financial independence. Get out of this scenario by having total control of your finances.
Save money before you spend Subtract savings from your income and use what you have left for your expenses. What is being cultivated here is the compulsive savings and the rigidity of the expenses. To be fair, credit cards are good in themselves because they help you establish your credit score, but your credit utilization rate must remain below 30%.
Forget the Joneses; say hello to the delayed gratuity. Keeping in touch with your neighbors, friends or co-workers is tiring because you lose your financial resources. If you do not pay on time, your credit report will not get along well. And if you are still paying off other debts, like mortgages and student loans, and you are concentrating on setting up an emergency fund, the time to make yourself pleasure is clearly more current.
Invest and grow your money. Putting money in your bank accounts is good for emergency financing, but to make it grow over time, you have to put your money where it earns more than in cash accounts. # 39; savings. Equities, mutual funds, bonds, annuities are some of the vehicles in which to invest.
Use due diligence when investing to help you make informed decisions, especially when dealing with risks. This goes with another rule of thumb: invest only what you can afford to lose.
A financially independent life
The path of financial independence is fraught with pitfalls and slowdowns. It will test your diligence and discipline to continue when your motivation slips quickly. Your finances can be paralyzed by debt repayments and large expenses.
You can take advantage of your skills and participate in part-time concerts to supplement your income. You can also create a shop for selling clothes online . Sign up on a platform that will do the work for you, setting up your online store from scratch and deploying it on lucrative sales channels.
Just think of your goods and let the multitude of e-commerce solutions to the experts. In this way, you will be able to focus on the most important aspects of preparing for a financially viable life.
If you are a big fan of crafts, you can try to turn this passion into a lucrative pastime . With the help of your creativity, your artistic talent and some affordable craft supplies, you can sell various works of art that can be used as decorations or to craft custom objects, such as greeting cards and trinkets.
There are so many ways to make extra money. you only need to be diligent and have sufficient resources to accomplish what you have decided to do.