FINANCIAL AUTONOMY



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Financial autonomy/freedom/independence is a term used to describe the state of having ample personal wealth to live without having to work actively for basic necessities. Financial autonomy, really, is much more than just having money. It is the freedom to be who you really are and do exactly what you really want in life.A pertinent factor to take note of however is; financially autonomous folks, have income generating assets which out-number their reparations.



Here are a few tips to help you stay financially autonomous:




1. Spend much less than you earn: The real key to financial autonomy is to spend less than you earn. Avoiding consumer debt and overlooking the Joneses will get you most of the way there, but it takes a lot of earnestness to spend much less than you earn. First, you need to keep track of your expenses and see what you spend money on. Then you can cut out the things you don’t need by effective budgeting and keep lifestyle inflation to a minimum. Of course, it’s equally as important to generate more income. Remember to work both sides of the equation to widen the gap between spending and income.

2. Be Malleable: Be flexible and fine-tune your spending accordingly. Some years are bound to be more financially difficult than others, and you need to be able to face them head on. If you’re laid off, minimize expenses and adjust quickly. Don’t wait until you’ve exhausted your savings before you cut spending. Instead of withdrawing money as usual, a better option would be to get a part-time job in order to pull through the rough patch. Being malleable means you’ll always land on your feet and live a less stressful life.

3. Overlook the Joneses: In most cases people tend to spend so much money on stuff just to keep up with friends and neighbors. We ought to ask ourselves sometimes "Is accumulating stuff really the reason we get up every morning to go to work?", cause really alot of us don’t need a 3,000 square foot Mansion and high-end cars. A modest home and car will work just as well. Luxurious commercials on TV make life into a competition to buy the most expensive items, but you don’t have to fall for that. Ignore the Joneses to build up your finances instead, and you will leave your neighbors behind financially. sounds goods eh? *winks*
4. Stay away from consumer debt: Consumer debt is the bane of financial autonomy. If you use credit cards to buy consumable goods and carry a balance, then you are enriching the banks and not yourself. Credit cards, payday loans and car loans are all examples of money-generating machines for creditors. The good step towards financial autonomy is to get rid of high interest debts and free your money to work for you instead of the banks.
5. Pay yourself foremost: Ermm! This might sound a bit selfish, but to achieve financial autonomy you will need to put yourself first. This means prioritizing savings ahead of other things. Save before you pay utility bills, buy groceries or even pay the rent. Paying yourself first incites you to live on a smaller budget and it’s a powerful saving habit. Living with what’s left after paying yourself is a great way to build wealth.
6. Acquire income generating assets: After saving, you have to invest the money in cash producing assets that will beget income and appreciate. The stock market has a good long-term track record, and many investors build wealth that way. Investment properties, art and collectibles are all assets that will help you move toward financial autonomy. Focus on purchasing assets that will fetch you money.
7. Keep investing: It’s equally essential to keep investing in profitable ventures over the long term. You have to invest in the stock market through the good and bad years. It can be difficult to buy stocks when the price is going down, but if you don’t, then you will probably miss out on the recovery. It’s much easier to keep buying no matter what the market is doing. That way you’re accumulating wealth over the long haul. As you near retirement, then you will need to adjust your asset allocation to minimize risk and volatility.
In conclusion, you don't need millions to achieve financial autonomy for yourself. Anyone can use the tips above to attain financial autonomy. owning enough income to cover your living expenses without having to work full time can free you up to actually enjoy your life instead of remaining on a treadmill of working and spending (the rat-race).

YOU ARE A LEADER!!!
Christopher is a brilliant content writer and digital marketing executive who enables brands to connect in a human way with their audience on the internet. He is also a trained investment advisor, with a passion for helping people secure and maximize their financial resources.

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