How You Can Become Financially Independent
When you retire from your 9-5 job like are you supposed to do by the time you reach 65 you are essentially indicating that you have become financial independent because over the last 45 years of working you saved enough money to live off of for the rest of your life. The good news is you don’t have to wait until you are 65 to do this. If you budget, cut expenses, start a side hustle, or work for a job you hate that pays really well you can earn enough money to retire early.
Read about the six steps it takes to become financially free.
Working towards making more money is helpful when trying to reach financial independence because you can then have more money to put towards investments, and then those investments can make you money (discussed further in #4 below).
Different people like to become financially independent in different ways. Some increase their income by working side hustles, seeking promotions throughout their career, and more, all while keeping a job that they love. Others are fine with working a job they hate in order to increase their income quickly so that they can save more of their money.
Saving and budgeting your money by using Mint or Personal Capital is a great way to start on your path to financial freedom. These apps can link all your accounts so you can see what you are spending your money on. Then you can add more money to start earning a passive income and the general rule is the more money you have invested usually the bigger a return you achieve as long as your portfolio is well diversified.
Lean how becoming financially free all comes together.
About Shaun Archer Tatum Shaun works in corporate finance in New York City. He has done financial consulting for several start-ups and has worked at several Fortune 500 companies. He has contributed several finance/investing articles on Seeking Alpha which have been published on Yahoo! Finance.