Becoming rich is the most common dream of almost everyone. But becoming financially independent is not easy but it’s simple. One can become financially stable by just following these 7 do’s and don’ts. So let’s get started with the money mindset and get financially independent.
Table of Contents
1: Mindset Reset
Everybody can become financially independent if they plan their financial goals according to their needs. First, shift your mindset so that you can also reach your financial goal and become financially independent.
2: Choose a Skill
Choose an in-demand skill or your passion skill to get started to make money.
Examples: Graphic Designing, Web Developer, Video Editing, etc.
3: Master the skill
Master the skill so much that you became irreplaceable in your field. Try to add your unique style to that skill that makes you stand out as a master in that skill and become financially independent.
4: Income streams
Once you get started making money with one income stream then start adding passive income streams to enjoy the cash flows from those income streams without doing much hard work passively.
No matter how much money you may make, if you don’t know how to manage it even a single rupee will not stay in your pocket, so learn about how to manage money effectively and avoid unnecessary purchases every time and become financially independent.
Don’t blindly invest in what others are investing in. Their financial goal might not match your financial goals so invest according to reach your financial goals. And moreover, understand the financial terms used in the investments and only if you understand them, invest in them.
For example: For most people, crypto is un-understandable so never invest in it. If you understand, go ahead!
After you master your skill and you start earning a decent amount of money, now hire a few members and expand it even more, and finally automate it with your employees and become financially independent.
1: Start Early vs Start Quality
Most people say to start investing earlier.
But the question is: If you do not have any income then how do you invest?
Hardly you will get 500 rupees and if you assume more say 1000 rupees. But investing this amount will not make any sense when compared to investing this money in upskilling yourself.
Investing this money to buy courses, books, and other useful things is recommended.
Once you upskilled yourself and started earning money investing 5000 rupees monthly is a good start to starting your investing journey.
To be short: Investing small amounts of money(say 100-500 rupees monthly for 5 years) will not make you rich; investing quality amounts ( say above 5000 monthly for 5 years) will make you rich through compounding.
2: Division of Focus
Shifting your direction at every moment will not bring you to your destination. Staying on one path will make you succeed. Focusing on several things at a time divides your focus and decreases your attention span. Try to work on a single goal, to see results quickly.
3: No Research
Many people just copy others’ portfolios and they start investing the same as they invested without researching on their own. Before you start investing, research by yourself based on your financial goals.
4: Giving Up Soon
If you just shift from your goals without maintaining hard work and consistency for a long time then you’ll never succeed in any of your goals. So before you give up on your goals, just think about why you started doing so.
5: No Consistency
Consistency is the key to success and only if you maintain it you’ll see the results of compounding.
6: Taking Loans
Taking loans will make you fall into debt if you fail to pay back the money. So avoid taking loans.
7: Not Checking
Before you buy anything, check whether you are capable of buying that thing 3 times then you can go for it. Check whether the things are adding value to your life or not.
Whether you are broke or you’re average you can become financially free by implementing do’s and avoiding the don’ts mentioned above. Once you start working hard for 6 months you’ll be able to become financially independent and stable.