- Personal Finance
Seeking Financial Independence
What is Financial Independence?
If I do not have to go to work five days a week for someone else so that I can pay my bills, am I financially independent? I might be, or perhaps my bills are not getting paid or I have a spouse who pays all of the daily living expenses. We need to be more specific and say 'Financial Independence as a Unit', if you are married or living in any form of a committed relationship.
Some clues that say you are Financially Independent:
- You do not need to go to work and can still afford all of the necessities you require to get by in life.
- Your assets earn more for you than you incur in expenses.
How to create your Financial Independence
I have the answer for you and to say it is quite simple, actually there is more than one answer. You could easily earn the independence you seek by winning a sizable lottery, you will need at least ah: let's figure this out, take your present income, multiply it by the number of years until you retire and you will be given a sum. This formula can work if you are presently putting enough money into your retirement fund. If you have a spouse who is also out earning a paycheck, assuming spouse also wants to quit the 9 to 5 grind, then you must add that persons sum to your own; you need that much money just until you retire in order to maintain your present living standards (perhaps add in the inflation rate as well).
Having said that here is something else to consider; as it seems most of us are not happy with our present financial status and would like to be able to do more traveling or buy new autos or whatever the case may be; we need more money than what you figured out in the formula above.
Winning the Lottery, what are the odds? According to what I am reading, I am only going to give you a couple of these stats, our chances don't look all that great. Here in Alberta Canada if you are buying a Lotto Max ticket, which many people do, your odds are one in 28,633,528 for winning at least $15 Million. Not very great odds are they, so I would say we need to be a lot more proactive and find another way to get to the point of Financial Freedom.
Become a Gatherer
That sounds simple doesn't it? We could just go around to all these great places that we know and gather ourselves up some 'Revenue Generating Assets'. Last time I checked, most revenue generating assets did not come for free and to top all of that off no one was offering me an affordable deal. So it's not going to be like going out and gathering pop bottles, of course that is revenue generating, but it takes much effort and time to create a decent return for all the work required in collecting pop bottles.
So we need money to get these revenue generating assets? That would be the easy route I would say, but we can do it for free from a ton of places off of the internet, that's what they keep telling us. Those places though that say you can make all this money at no cost to you, you are not buying an asset, you have nothing in your hands to hold onto other than perhaps a piece of paper. So shouldn't we maybe just buys stocks or something like that instead, wouldn't that be in our best interest? That's risky business I say but surely you can find some statistics for that somewhere. Investing properly in stocks or bonds could be lucrative and I do have money in that area with a professional.
It is not as simple as going out and deciding, 'Okay this looks like a good money maker, let's gather that one up'. You need money to get more money most times, unless you are one of the lucky few that are in the right place at the right time, you have found yourself a niche market or someone handed to you on a silver platter the ultimate cost free residual income generating opportunity that will lead to your financial freedom.
Hubs is one way we can generate income for free, if time is of no cost to you that is, there are others similar to HubPages where you can do similar. Finding content is another thing and sometimes my brain is running on empty. My brain just decides to call it a day around 5pm due to the fact that I have to go to work and figure out how to fix all of the computers that are broken in one way or another.
For us regular folks I will say it is a bit of a battle, it has its ups and downs and along the way we may learn how to use some worthy applications that can be applied in other areas. I have read so many how-to's and how not to's that I think I have sizzled some of the wiring in my noggin. I have created a blog and I may have some worthwhile tips for you in your journey or perhaps you just like to read stuff.
As to the Financially Independent part, I'm not there yet, I still need to go to work to keep bringing in the good old paycheck. To gain this independence we must not give up and push forward until we find something that works for us. It can be done and eventually some of us will achieve the loosening of those financial bonds that hold us to things we would rather not be doing.
Buying real estate or other tangible assets is the old way of gaining financial freedom; with the internet we now all have a chance of getting ahead, we just need to market a valid product or service.
To find what works for you is the most difficult part in a saturated market. Find something you are interested in, possess knowledge in and then proceed to research the best ways of getting your product or ideas promoted.
Take the first step to your freedom sign up with HubPages for a start Here!
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