- Do you want to be happy?
- Do you want to be successful?
- Do you want to lead a life free of stress and hassles?
Then you’ve come to the right place!
In today’s article, I’ll give you a list of habits that will help you achieve all of those things and more!
Financial independence is one of the keys to leading a successful and stress-free life. But it doesn’t come easy – you have to really work for it. And I’m not just talking about the type of work you do in the office. I’m talking about the kind of work that happens in your mind. I’m talking about working on yourself – on your mindset and your habits.
Hello everyone, and welcome back to my success series. I’m Antoaneta – a business leader, investor, passionate minimalist, and green living enthusiast. With this post, I’ll give you my tips on how to achieve a success-driven mindset, focused on financial independence.
Follow these tips if you want to achieve lasting financial independence
We’ll cover the following topics:
- What is Financial Stability
- Impulse Buying
- Income Diversification
- Bonus tip
What is Financial Stability
By financial stability, I mean that your income should cover your expenses. You shouldn’t ever have to rely on loans or credit that you can pay back at a later date for your everyday expenses. Although these things are very convenient, they’re also a bit dangerous – you never want to risk getting stuck paying interest or hurting your credit score. There is also no way to guarantee that you’ll be able to keep making your payments every month. Unexpected things happen, and I believe that the current COVID-19 situation should serve as a wake-up call. Nothing in life is 100% certain. There are always things that can go wrong. So don’t plan for “perfect” conditions and ideal circumstances, because you might not have them.
And yes, I know that higher income is the “go-to” solution for most people. But it’s not the only one! Sometimes, you might not be able to secure a promotion for yourself or expand your business as fast as you’d like just by working harder. So what do you do? You work smarter. You work on yourself and your habits.
Budgeting Budgeting Budgeting
As most of my frequent readers probably guessed by now, the first and most important part is to up your budgeting game.
If you want to be financially stable, your expenses need to be lower than your income. But if you’re only ever earning as much as you spend, you’ll never be able to save any money. You’ll be stuck in a loop where you’re trading your time for money, just so you can sustain yourself. You’ll never be able to break free from the loop, and you’ll never get anywhere.
The way to do this is by upping your budgeting game!
Look at how you spend your money. Think about the things that you’re buying, the bills that you’re paying, and the “allowance” you give to yourself. For me, the key was minimalism. My minimalistic approach to life guarantees that I never spend money when I don’t need to. Don’t get me wrong, I’m not advocating for frugality here. I’m telling you to be more mindful with your purchases and consider long-term viability and sustainability.
Allocate a portion of your income to savings and investments. This is a big one, and it can really help you break free of the day-to-day mindset in the long run. If you’re new to the concept, I suggest that you start with no more than 10% of your total income. As soon as you receive your wages, just put 10% into the account and don’t spend this. This isn’t just about the amount of money that you’re saving – it’s about the habit. Once you get more comfortable with the concept, you can start saving more. You can go to 15%, then 20%, then 25%, and so on.
Take control of your impulses
Impulse spending is a big problem in our society. It’s also one of the critical factors that are holding people back from achieving real financial stability. Because, let’s face it – no matter how much money you make, there are always things that you can spend it on. You can be earning as much as Warren Buffet or Jeff Bezos, and if you don’t know how to control your impulses, you’ll never be financially stable. The easiest way to deal with this is to give yourself a “buffer”. Leave at least a day or two between finding something you like and actually purchasing it.
Impulsively buying things when we’re upset is not much different from eating junk food or binge-watching Netflix shows to cope with stress. It’s a nasty habit that will only harm you in the long run. Again, please remember that I’m not saying you shouldn’t have fun or treat yourself once in a while. As a matter of fact, I’d encourage you to take time off when you need it and make sure that you take care of yourself well. Just remember to think before you buy stuff.
Diversify your income
Being financially independent means not relying on a single income source to sustain yourself. You should look for opportunities to get money in different ways that don’t have to do with your day job. Whilst most of these ways will still involve exchanging time for money, they will help you build your confidence and improve your mindset. You could have a side hustle, pick up some freelancing gigs, start your own business, learn to invest in the Stock Market, and so on. The idea here is that you don’t want to be stuck with your day job as your only way to make money.
Look into investments
If you want to achieve true financial independence and stability, then learning how to invest is crucial. Investments have the power to help you leave the “loop” of exchanging your precious time for money once and for all. Sure, it takes some time to learn the ropes, and it takes some capital to get started, but that’s easily achievable. You don’t need to be rich, you don’t need to own businesses, and you most certainly don’t need 10+ years of experience to make it work.
Personally, I’m a huge fan of long-term investments, and I’ve posted quite a few articles on the subject. If you’re new to investing and you don’t know how to start, don’t worry – I’ve got a couple of articles waiting for you in the resource section at the end of this post!
But that’s not all!
Since I often receive questions about my Stock Market activities, I’ve decided to make an entire course, dedicated to helping beginners find their footing. I’ve been working on this for the last couple of months, and I’m happy to say that it’s nearly done. You can find more information about it, along with a sign-up link below.
Bonus tip: How to Stay on Track
Trying to change your habits and training your mind to be more disciplined is no easy task, especially if you’re doing it during a difficult period in your life. However, there is a one really easy way to stay motivated, and it’s a trick that I’ve used countless times in my life. Are you ready for it? Here’s how it works:
- You set goals – Remember to make them as S.M.A.R.T as possible.
- You work on your goals – Persistence and dedication are what this game is all about.
- You track your progress – Few things can be as empowering as looking at how far you’ve come.
If you’d like to learn more about how (and why) this principle works as well as it does, check the link to my goal-setting article in the resource section.
Now, this is really easy to do for things like physical fitness or creativity-related goals, because you can just look at the practical results in front of your eyes. But how do you apply it to finances? It’s actually really simple – you track your net worth.
To calculate your net worth, you take all of your assets (your cash, your home, your pensions, etc.) and you deduct your liabilities (mortgages, payments that you owe, credit, etc.). This is your net worth. If it’s positive, you’re doing well. If it’s negative, you’ve still got some work ahead.
Tracking your net worth can easily show you how far you’ve gone, and, over time, can help you see just how far you’ve come.
Oh, would you look at that – we went a bit over the limit again … Well, I personally think it was well worth it this time. Financial independence and stability are pretty important even under normal circumstances, and the whole COVID-19 situation just makes them that much more crucial.
Please keep in mind that, as with all other information on my website, this article is based upon my personal experience and research. I am not a certified expert, and I am not your financial advisor. Please always do your own research and consult with a certified professional before committing to any serious life-altering changes.
But enough about me and my experiences.
What about you?
Would you say that you gain financial independence yet? Have you tried any of these tricks before? Which are your least and most favorite things about finance? Check out my other blogs such as, “Do You Know About The Top 5 Behaviors Of The Rich Nobody Talks About?“.
As always, if you have any questions, or experiences that you want to share, don’t hesitate to drop me a comment below – I always love hearing from you!
Thank you all for reading, and until next time:
Stay green and motivated!
Recommended for further reading:
- Start With Why: How Great Leaders Inspire Everyone To Take Action
- The Self Confidence Workbook: A Guide to Overcoming Self-Doubt and Improving Self-Esteem
- Atomic Habits: The life-changing
- The Miracle Morning: The 6 Habits That Will Transform Your Life Before 8AM
- You Are a Badass: How to Stop Doubting Your Greatness and Start Living an Awesome Life