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  • Writer's pictureJacob Vernon

How to Become Financially Independent

Updated: Jun 22, 2023


Seven tips to help you achieve financial independence

Becoming financially independent is a goal that many of us aspire to achieve. It means having the freedom to pursue our passions and live life on our own terms without being constrained by financial worries. However, achieving financial independence requires discipline, hard work, and a clear plan. In this blog post, we will discuss some tips on how to become financially independent.


1. Set your goals

The first step to achieving financial independence is to set a goal. You need to know what you want to achieve and by when. Your goal should be specific, measurable, achievable, relevant, and time-bound. For example, you could set a goal to save $1 million by the time you are 50. Once you have a clear goal, you can start working towards it.


2. Create a budget

The second step to achieving financial independence is creating a budget. By doing so, you can better understand your finances and identify areas where you can cut back on expenses. This will help you to save more money and ultimately reach your financial goals faster. Creating a budget may seem daunting at first, but it can be a simple and effective way to take control of your finances. Start by tracking your income and expenses, and then use this information to create a spending plan that works for you.


3. Live below your means

Living below your means is an essential part of financial stability. Once you have a budget in place, it's important to make sure that you are not overspending and putting yourself in a potentially precarious financial situation. To achieve this, you must focus on spending less than what you earn, which will allow you to save money and build a solid foundation for your future. Remember, living below your means doesn't mean that you have to sacrifice your happiness or quality of life. It just means being mindful of your spending and making smart choices that will benefit you in the long run.


4. Save aggressively

Achieving complete financial freedom requires a determined approach to saving money. To save aggressively, it's important to set realistic goals for yourself. You don't want to save so much that you can't afford to pay your bills or enjoy your life. However, you also don't want to save so little that you're not making any progress toward your goal. Ultimately, saving is going to be one of the most important factors in whether you achieve financial independence.


5. Invest wisely

Investing your money can help it grow faster than just saving it. It's important to invest wisely and diversify your portfolio to minimize risk. Investing your money is vital to save and grow your wealth. It's important to do your research and choose investments that align with your financial goals and risk tolerance. Consider speaking with a financial advisor to help guide your decisions. By investing wisely, you can potentially reap the benefits of compound interest and achieve long-term financial success.


6. Build passive income streams

Passive income streams can provide a steady stream of income without requiring a lot of effort on your part. This could include rental properties, dividend-paying stocks, or a side business.


7. Stay committed

Achieving financial independence takes time and dedication. It's important to stay committed to your goal and make adjustments as needed along the way.


Conclusion

In conclusion, achieving financial independence is no easy feat, but it is definitely worth the effort. By setting clear goals, creating a budget, living below your means, and saving aggressively, you can take control of your finances and pave the way toward a brighter financial future. Remember, achieving financial independence requires discipline and hard work, but it is also about making smart choices and investing in your future. With the right mindset and a solid plan in place, you can make your financial dreams a reality.


If you have any questions please contact Vernon Management Group at rustyvernon@vernonmanagement.com.

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This is not tax advice. Please consult your tax advisor before making any tax decisions

*Please consult your tax advisor before you make decisions that involve tax laws

Past performance does not guarantee future return

Jacob Vernon, investment advisor representative at Vernon Management Group

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