Updated date:

How To Become Financially Independent

Author:

Being an IT engineer by profession, I'm also a writer, blogger, web entrepreneur and martial art enthusiast. Stay in touch.

Financial Independence Is A Necessity

Who does not want to be 'Financially Independent'? This is something we always want to be. However, due to routine life, we forget to continue sometimes. When we have a good job, we don't care much about the future. Have we ever thought about what will happen, if we lose our job? It may cost huge in case of any sudden financial crisis. Whatever our source of earning maybe, we should try making more money methodically, to be financially strong and independent. This has now become a necessity.

Financial independence is required

Financial independence is required

We Depend On Other People In Many Ways

In the most of cases, in the matter of finance, we usually try to get a job for earning an income. We work for other people to get a monthly salary. That means we are financially dependent on other people for our employment. That is why we should try to build a solid system that builds money for us.

What Will Happen If You Lose Your Job?

Your income will stop and it will bring a tough time for the entire family unless you have sufficient savings in banks. So, this can't be financial independence.

If you build an income system by yourself that enables you to earn a regular recurring income, then you don't need to stay dependent on other's mercy. The entire system would run under your control, in that case. This is called financial independence, where you create more wealth for the future.

What Is Financial Independence ?

So, in short we can say that : Financial Independence is to build an income system that will remain under our control and will provide steady residual earning without being dependent on other people. It requires time and consistency both to see success.

Building passive income needs consistency

Building passive income needs consistency

How to Become Financially Independent

It's a long process and not an overnight thing. One needs to have consistency in saving money and build a system that helps earn stable recurring income. The main steps are: Enhance savings, reduce expenses, and increase income.

Enhance savings: Consistent investments from the salary or the source of your earning is a must. Even a long time small, but the consistent investment of money could take someone in a good financial position in the future days.

Reduce Expenses: Unnecessary spending should be removed from the budget as much as possible.

Increase Income: It's required to build multi-source of income streams.One or two side businesses are required besides your main active income source. These passive income sources can increase total income.

Strategy Of Passive Income Streams

Online Earning: In this era of the internet, the traditional work style has been changed. A lot of people have started making money online using the internet. Entrepreneurship can be started from home without any investment into the business, by just over the internet.

Below are some legitimate ways to earn online :

Freelancing

Blogging

Affiliate Marketing

Start an online E-commerce store or website

Online Tutoring

Create a Youtube Channel

Become a Virtual Assistance

Create an app and sell online

Why It Is Important In Present Time

In this time of the Corona Virus pandemic, our known world has become completely changed in many ways. Many people have lost their work and fallen into huge financial problems. The serial lockdown caused the worst economic downturn. Everywhere there are health issues, businesses fall down and above all, recession across the world. We are now more digital than before. While surviving has become the main challenge for many people, then financial freedom is the key to fight back and stay safe in the future times. We must prepare ourselves to be financially strong and secured. Hence, financial independence is the solution for almost everything we will face in the post-Corona time.

Mindset Build Up

Mindset : A strong mind can't be defeated. It's required to get success in any field. Strong determination and consistent work can help reach your goals of life. Financially Independence involves a lot of struggle. Entrepreneurs need to find out opportunities for the problems. Research a lot and follow the latest business trends. Sacrifice for good things gives good results in the long run.

Final Statement

Financial freedom is a long and consistent process. It needs effort, consistency, and patience. Moreover, it is always recommended to start the process as early as you can. Every successful journey has its own struggle story as it takes some time to establish. One should accept that as a learning phase and improve himself accordingly. So, here in this case, passive income stream building, proper investment, and savings are the keys to success to be financially independent.

Importance Of Being Financially Independent

This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.

© 2020 Kuntal Ch