How to get Financial Independent? – Do you want to become Financially Independent? I am going to show you the best ways to become financially independent.
How to get Financial Independent?
Hi there, Edmund here.
Financial Independent is by simple definition you are earning more than you are spending.
Your income will be passive, which means that even if you do not work, the money is still flowing into your bank account.
How to achieve this?
I am going to share with you the best ways to achieve this based on my own experience.
How to get Financial Independent? – Regular Saving Plan
I was a Financial Consultant and I designed investment portfolios for my clients. Thus, I know the great benefits of having an investment portfolio.
You do not have to have a big amount of money to start investing. In fact, you just need to set aside a portion of your monthly income to start a regular saving plan which helps you invest in funds on a regular basis. (Monthly or Quarterly)
In this way, over long terms, you are not worried about the volatility of the markets because you are sampling the market price at a regular interval.
What do I mean by that?
When you are investing in funds, you should choose funds that have good track records over a period of time. (Depending on your risk appetite, there are high-risk and low-risk funds)
Which means, over time, the funds have shown growth over a long-term uptrend. Ignoring the volatility of ups and downs in between, by sampling at a regular interval with a fixed amount of money.
You are buying more fund units when the market is down, and you are buying lesser fund units when the market is up.
How does it work?
Over a long term, the fund units accumulated will eventually give you the positive capital gain and dividend growth due to the uptrend of the fund caused by inflation.
This is a long term strategy and you must have the patience to implement it. Having said that, all investment comes at a risk. You should speak to your financial consultant to assess your risk appetite before creating your investment portfolio.
It is always beneficial to plan for your own or family finances because it is very easy for most people to overspend when they have a lot of money on hand.
As a Financial Consultant previously, I have seen a lot of young adults trapped in the high-interest snowballing effect of credit card debts!
They are often excited that they can finally apply for their own credit card after getting their first job. They would go on a shopping spree spending their future money on the things they wanted but not needed.
I always advised my young clients to follow this golden rule “Save, Invest and Spend the rest!“. They are young and have time on their side.
Starting a Regular Saving Plan early gives them a head start to build on their passive income earlier. Do you agree?
How to get Financial Independent? – Rental Income
There are many Property Gurus out there teaching people how to invest in property without a huge capital outlay. Robert Kiyosaki, the author of “Cashflow Quadrant” advocated this.
I am not a Property Guru, but this is definitely one of the ways that I think could generate a lucrative passive income if done correctly.
Personally, I would favour investing in properties that generate good monthly rental yields.
A property is a fix asset and investment in it involves risk. Investment in property may not be suitable for some too.
I would advice do a research on your local property law and taxes properly or speak to a local property agent before heading toward this direction.
How to get Financial Independent? – A Safety Net
Most of the time, when people fail to plan for unexpected events, it results in sad situations where their family or loved one suffers huge financial burden.
I always advocate buying insurance for Critical Illnesses. Our life span is longer with the advancement of Medical Technologies, but there are diseases human still cannot find cures.
In this 21st Century, the food that we eat and the environment that we live in is no longer the same as the past. Fast and processed food is commonly available now.
The Industrial Age is producing more carbon monoxide into the atmosphere.
The Nuclear Age has caused several well-known disasters. Radiations in the environment became unsafe in these areas.
Do you know that the highest number of critical illness death is caused by Cancer around the world?
So, in the event we are no longer able to work due to stricken by critical illnesses, Insurance will become very important.
It will help us with the medical costs and reduce the very much heavy financial burden to our family and loved one during the difficult times.
I know it is sometimes taboo to talk about death in certain culture. I sincerely apologise as I have to bring up this important topic in this article.
Not all countries in the world offer insurance. If you have access to insurance in your country, do not miss this important way to secure your Financial Independence in times of crisis.
Speak to your Insurance Planner for the most suitable insurance plan that is affordable and tailored to your needs.
How to get Financial Independent? – Online Business
You could build an Online Business during your spare time easily in this Internet Age.
Many people are searching for Online Business Opportunities and heading in this direction for it low startup capital but potentially huge returns.
However, there are many people who fell into the trick of Scam Companies / Products that promises riches overnight.
I was one of them too.
Many years ago, I began a journey of Online Business Opportunity quest, but sad to say I went through many downs but no ups! I was scammed of some my hard earned cash and lost every confidence in the Online Business World.
Until I met Kyle who extended his helping hand to get me started with this again.
I learned how to build an Online Business successfully at Wealthy Affiliate.
Now, I have built an alternative income stream that is passive and I acknowledge that it is possible to achieve Financial Independent with an Online Business.
To learn out how to build an Online Business, I would highly recommend Wealthy Affiliate and none others.
This is the place that taught me how to start, grow with the community help and keep moving forward with the right mindset.
The lessons in there are suitable for novice to expert. Some even called it university due to the enormous library of training and videos.
How to get Financial Independent? – There you have it!
These are the best ways to help you get Financial Independent and I sincerely hope you have learned some things from this article. If you like this article, please share with your friends and loved ones.
If you have any comments, feel free to write below.
Wishing you the best!