Be Financially Independent – 10 Easy Ways

October 7th, 2007 | Stacey | Residual Income, Debt Management, Passive Income, Multiple Streams of Income, Financial Freedom, Financial Independence

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Is it possible to become financially independent in 10 easy ways? Many people develop a solid get out of debt plan and achieve financial freedom with a common sense approach that includes:

1. Figure out what makes you happy and go for it. Possessions offer temporary happiness while extra time for family and friends, a job you like and good health are the basis of true joy.

2. Keep life simple by taking time to deliberate about the big choices in life such as your job, your home and who you will marry.

3. When you purchase your home, select carefully. This may be the biggest purchase of your life and you should consider the house and neighborhood. If you can’t afford what you want the first time, make a solid investment in a good home that will yield a profit in five years so you can move to the area you want.

4. When you purchase a car, avoid pricey leases with loopholes. Consider a conservative new car and keep it for eight to ten years. Buying a slightly used car with a good warranty and keeping it for six years is another excellent option and a way to save money.

5. Enjoy low cost hobbies and recreation. Vacation home and golfing can get very expensive and you can equally enjoying renting a lovely cottage for a week and going on scenic bike rides.

6. Try to marry carefully so you don’t need to experience divorce. Divorce can be time-consuming, emotionally draining and financially expensive. Pick your partner wisely.

7. Establish multiple sources of passive residual income. By having creative endeavors, stock, real estate or a marketing business that earns cash on the side, you can save money for a more financially secure tomorrow.

8. Spend wisely on utilities such as telephone, cable and Internet access. Comparison shop, avoid solicitations and avoid long term contracts so keep costs down.

9. Avoid debt. Keep credit card balances down or non-existent and make the mortgage your only debt as you approach 40.

10. Save money. Continue to save, even if it is a little bit, and don’t touch your savings.

By having a practical approach to handling money, you can become financially independent without extensive education or a lofty financial portfolio.