Financial Independence Through The Years – Part 5

July 8th, 2008 | Stacey | Debt Management, Residual Income, Passive Income, Financial Freedom, Financial Independence

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Our latest series discusses financial independence through the years and the various stages people traditionally go through to reach financial freedom. Once you establish your budget, pay off credit and reach a comfortable position on your own, everyone wants to be free from reliance on regular employment.

When you trade dollars for hours, often you wind up living from paycheck to paycheck. Getting past this hurdle is the hardest part. By saving every week, you can build a nest egg that earns interest. Over time, you will be able to live without relying on employment. Other ways to build a nest egg including establishing your own sources of passive residual income. Through creative endeavors, sales and a variety of enterprises, you can earn ongoing income for work you only did once.

Whether you refer to it as retirement or financial independence, you are truly free when you don’t need to rely on your employment because you have passive sources of income that cover your monthly bills.

Lowering your expectations and expenses is another way to reach financial freedom more quickly. Do you really need an estate or would you be content with a cottage if it meant you were financially free?

By saving more, spending less and investing your passive income you can earn more passive income. Value your time and make the most of the work you do by handling every penny carefully. The financial independence you crave will be right around the corner.