Financial independence is the ability to live from income of your own financial resources.
To start with, its good to note that sometimes its possible to be a good person but fail to be financially independent at an old age like 40 yrs old. Why? Because we fail to have a good plan and goals.
1. Set the right philosophy.
To set on sail towards financial independence, you need to set the right philosophies about your health, family relationships, friendships, economics and life.
There are a number of philosophies we can consider.
a) Philosophy of the poor.
The poor person always spend money and invest on what is left.
b) Philosophy of the rich.
A rich person invest all the money and spend what is left.
2. Use wisely what you have.
What would a child do with a hundred shilling note or a dollar or a rand or a pound? In my study, a wise father will teach his child not to spend the dollar. But this is what she must do with the dollar. Spend at most 70 cents, give ten cents to charity work like tithe, ten cents to worthy projects and active projects, projects that will earn some profit. Its best to start when young and even when you get a million dollars letter, you can still give the tithe. Remember profits are better than wages. The rest 10 cents, use it as passive capital. Capital you let someone else you. Could be a financial institution, stocks and bonds .. whatever. Let someone use then pay you an interest. The borrower is always a servicer for the lender and a wise kid should always say I want to be the lender, the one with power .
Many people always hate to pay bills or taxes. You need to realize that the system is like a goose and we all have to play our role to feed it. Don’t complain the goose is taking too much but do your part. Develop an attitude to always do your part. Pay the bills, reduce the liabilities and increase the assets.