We all want to achieve financial independence which is the final stage of having sufficient personal wealth without having to punch in the clock at work daily to afford basic amenities. When your friends or family complain about the stress associated with their 9-5 jobs, you can’t relate as you’ve reached the stage where you can sit and watch your money grow.
However to reach this level of Zen in the personal financial sector, there are somethings you should about money and certain principles you should follow. Here are 4 of them for this lovely Wednesday morning:
You Can’t Afford Everything. Look at that long list of things you want and look at your account balance. What can you afford to buy and what can you afford to let go of? You can afford to buy some things but definitely not everything which leaves you with the decision to choose which is most important and sensible to you.
It’s Your Money, Act Like It: Have you ever seen questions or statements like “He/She has so much and won’t donate to so-and-so charity” or “why did you spend that amount buying a bag as opposed to giving to the church?” Learn to get rid of strange expectations society has over you and do what you want with your money. If you listen to what society deems right, you’ll end up spending money where you really do not want to which is really a shame.
Mind the Money Gap: People are of the notion that the more you earn, the more you save. I think that’s wrong. Most people who earn a lot more than they use to earn before spend more than they used to spend before. What you should be watchful of is the Money Gap. This is the space you leave between your savings and expenses. If you can increase that space as you earn more, you’re on a good way to financial freedom.
Don’t Budget: I’m serious. Try it for a month. What you should do is, take of your savings from your income the minute you get it and do with the rest as you please for the month. Don’t touch the savings at all no matter what. At the same time, don’t stress over which brand of cereal is 50 Naira cheaper than the other.
Okay, you can start your journey to financial freedom now.