While the sky was falling during the recession, many people who thought they had a "safe and secure" job learned that the world economy has changed. The days of finding a secure job for life is pretty much over and the next 20 years is bound to be a tumultuous economic time. While relying on a salary is a safe and secure idea, I can think of no worse place to be in this changing economy. Depending on someone else to look after you financially is a recipe for disaster.
Financial independence basically means that you are not dependent on someone else for your income. It means you don't put the responsibility of your income on someone else. the way to become financially independent is to learn how to generate your own income. As long as you rely on someone else to provide for you, you will always be at their mercy. You will always rely on them for your income and as we saw during the recession, its never a sure bet.
Financial independence is often associated with being rich and making a lot of money, but for me its much more significant than that. Its about freedom, being independent and above all having the control over your own financial situation.
So, the idea certainly sounds great but how do you get there? Well, there are 2 important concepts that can get you there. The first is the fact that you have to start your own business. Regardless of how small or how large because a business will give you leverage to earn money even when you sleep. You have to get away from the idea of exchanging your time for money (as you do with a regular day job).
The second concept is that of investing for wealth. Investing can be very powerful and even if you invest a small amount every month you have to start sooner rather than later. Investing allows your money to work hard for you instead of you working hard for it. It allows you to grow your wealth without having to work for it. Compound interest is an incredible concept and by building interest on your interest you can really snowball your financial success and create financial independence for yourself and your family.
The secret to obtaining financial independence is to get started. If you are stuck in a day job (especially one you hate) then you have to start doing somethi
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