Small steps towards financial independence

Probably you are familiar with the saying that a journey of a thousand miles begins with a single step.
There’s a truth behind it, you can apply the same saying in anything you want to achieve.

The first step may be the hardest one, it may seem that to reach your goal it will be a long road.
By having a good plan towards your goals, that are realistic, I think you could reach them.
Becoming financially independent is possible as long as you stick to your plan.
Ups and downs are going to happen, that’s part of the nature of the game, trying to stabilize a volatile system can only lead to another black swan, which happens pretty often now.
I hope that with my guidance from my articles you will be able to create your own strategy to reach your financial independence day and to see what works and how far you can stretch your budget in order to save a bigger amount from your income.


Financial independence as a goal

Planning to gather assets is the first step towards financial independence.
I don’t expect that everyone will be interested going after financial independence as a goal. Some may say that it is too hard, others won’t believe it’s possible.
I’m not going to argue with that, it’s your life, and you should do what you consider right for yourself.

This isn’t for everyone
You can reach financial independence with the minimal wage, but you won’t get there anytime soon.


I’m not sure who started this trend, that it’s enough to save 10% each month from your salary to achieve financial independence… well bad news, if you do the math, it will take over 38 years to achieve it.
That shouldn’t disappoint you, saving is a good way to be prepared for the future and any extra income won’t hurt you. Over time, this extra income will offer you more security and you will afford even more.
Moreover, buying a stock from a company also means that you will own their products, which will appreciate with inflation.
This means that investing in stocks is a good way to take advantage of inflation.

From my way of seeing things, you need to save at least 20% of your income if you want to retire early, else it’s not going to have a big impact.
Since it’s in percentages, the beauty is that you can apply this to any income.
Usually, if your income streams will increase over time, means you could save more.
In case you will get an increase, why not live in the same style and save more for a better future?

Some are living frugally to achieve their plan of financial independence in a shorter amount of time.
I can’t tell you that I fully agree with them or that I don’t, it’s a lifestyle so you have to decide what is right for you and how much are you willing to work to reach your goals, the power is in your hands.

When I’m thinking about buying something I like to analyze why I need it and how can I benefit in the long term.
Avoiding bad debt is usually one of the first steps how to increase your risk of failure, stopping the financial hemorrhage will definitely help you.
I’ll get into more details in the upcoming articles because I would like to discuss what it means to save some cash from your income, what different percentages mean for you and later on to get into stocks, how to beat inflation and of course how to put your money to work 24/7 for you.

Take control of your life

I think life is simpler if you understand how money works in our society, it will make your life easier to understand.

Something that really stuck into my mind, why to wait for the government to decide when you reached your time to retire?

1 thought on “Small steps towards financial independence

  • I definitely agree that we need to be saving a minimum of 20% and not depending on the government. If the government has social security by that time great but it’s not something that I am depending on at this point. Great article!!!

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