“A journey of a thousand miles begins with a single step” – Lao-Tzu
Financial Independence may seem like such a hard thing to achieve, and to many it seems impossible. However, as the famous saying goes, the journey begins with a single step.
As with all challenges, you have to start somewhere, practice daily and build on your experience to eventually reach your goals. It is really easy to start and although the daily decisions may not always be easy, working towards Financial Independence can be a reality.
If the thought of Financial Independence is too daunting and you think that you cannot achieve it, start with these 4 easy steps and enjoy the journey.
Decide to be in control of your money
The first step to any financial goal is to decide to be in control of your money. Being in control of your money has nothing to do with how much your have or earn, and all to do with how you spend it and invest it. It is knowing what every cent is going towards and understanding how different spending decisions can impact your goals.
All it takes in one simple decision saying “I’m gonna take control of my money”.
Right now you don’t need to know much about finances as you can learn it all; just make that decision!
Set a realistic goal to start with
The best way to motivate yourself is set a small goal which you can achieve relatively easily. Focus on achieving it and you will see how your perspective of finances changes as you see yourself reaching the goal.
When setting a goal though be sure that it is measurable and achievable. Instead of being vague and stating that you want to save “some” money, specify the exact amount and the date by when you want to have done it.
Start off with something that won’t be too hard, goals should be motivating and not depressing or something that makes you feel guilty.
Create a budget and vague path to your goal
If you don’t yet have a personal budget, then you need to create one as a matter of urgency! There are many resources online about this but the basic concept is simple:
- List your income (stable and reliable income)
- List your expenses (if you’re unsure if where to start have a look at the 30-day challenge to keep track of expenses)
- Make sure that you earn more than you spend!
Have a look at this to get you started.
This is a very important step and something people don’t do often enough. You need to reassess your current situation, spending pattern, budget, goals, etc on a regular basis. Circumstances change and your own experience and confidence levels change. Embrace these changes in your journey to financial independence.
Allow yourself to embrace change and keep a journal of your experiences along the way.