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When Financial Independence doesn’t mean Retire Early

When Financial Independence doesn’t mean Retire Early
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  1. Know the reason Why
  2. Know where you are
  3. Know your debts
  4. Know your Goals
Many of us to attain financial independence. A lot of the times and when we share this with friend and family it conjures up images for them of sunbathing on a yacht, stretching in a lounger on the beaches of Goa, or lying by the poolside reading a book with your favorite glass of scotchBeing financially independent doesn’t necessarily mean that you want to retire early. For instance, I have no intention of retiring – ever. Life is so unpredictable and I’ve seen first-hand how an unforeseen illness can drain the bank balances of retirees. Financial independence for me is to have the choice of leaving my day-to-day grid if I needed to and not be stressed about it.Remember that this is a journey and the earlier you get started the better it is and here are some tips

Know the reason Why

Why do you want to be financially independent? Knowing the reason is the most important thing as it will provide you with the drive to achieve this goal. Like me do you want to have the option the walk away from your 9 to 5 when it finally gets too much – that next promotion didn’t come your way, your colleagues are getting ahead because of their advanced degrees in brown-nosing or is there some other reason that drives you. Make a list of the reasons

Know where you are

Assess your current situation is a key second step – as I said before this is a journey and you need to lay the foundations and build on it. Make a list of your assets, your debts, and your spending habits. These are small enough areas that we tend to overlook but they are a critical part of the journey. Build a budget and track it weekly. Build a complete picture of your finances so you can compare it to your goals.

Know your debts

This requires a special mention and it’s a key third step. Your debts will take you away from your goal so you need to focus on reducing your debts. If you have credit card debt, loans, etc. you need to first pay them off – Grow your Finances. I am currently debt-free and I’ve maintained this status for the past 15 years of my life. It’s not easy. It requires sacrifice on your part and that means giving up on things that you so desire but trust me it all pays off. Reduce Debt

Know your Goals

What are your financial goals? Set yourself a goal for the next 10 or 20 years. I know life is so uncertain but we need to plan and try out best. Have a mental picture of what you want to achieve and remember it every morning as you work towards your goals. invest in protective measures like Life insurance.All of this planning for Financial Independence is nothing if acted upon. Now that you have a basic idea of what you want to plan each day on how you will achieve it and review your progress once a week. Make changes when required and keep moving forward. Create small goals – achieve one and then move on to the next one. Know that life will continue to happen and even might derail you along the way but keep at it and you will achieve it.Covid19 has taught us that job security is a thing of the past. As we come out of this most of the old careers will cease to exist. We through machines and AI would take our jobs who knew it would be something invisible.

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