Happy Independence Nigerians!
We pray for, even as we work towards, a better nation for us all.
It’s the season of celebrating independence, let’s discuss financial independence. What is Financial Independence? According to the Wikipedia, Financial independence is a state in which an individual or household has sufficient wealth to live on without having to depend on income from some form of employment. Financially independent people have assets that generateincome (cash flow) that is at least equal to theirexpenses.
That’s the point of financial independence, when your income is at the very least equal to your expenses, how much more, it can be more than your expenses.
How can you then achieve this financial independence?
- Increase your earning potentials; increase your revenue-generating assets. Invest in assets aside your employment that can increase your periodical earnings. Also, invest in passive income (This is income you earn without having to work a job). Passive income includes dividends, rental properties, royalties etc.
- Avoid unnecessary expenses. This doesn’t mean you shouldn’t live a life of comfort but avoiding unnecessaries. Cut down on bills that can be minimized, for example, electricity bills (whatever electricity appliances that are not in usage, switch them off).
- Have a financial plan or budget. This should guide whatever is coming in and whatever is going out. Have control over your spendings and incomes.
Be Financially Independent!
We believe in you!
Originally posted on October 1st 2018 on www.thefinancialliterate.wordpress.com (A previous version of The Financial Literate)