facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause
%POST_TITLE% Thumbnail

10 Rules to Live by if You Want to Achieve Financial Independence

Financial independence can be defined in a number of ways. However, when most think of financial independence they dream of a time in their lives when they are generating enough income to cover the essential expenses so that they never have to work again. For some, financial independence is far off into the distance, for others it's within close reach. Wherever you fall on the spectrum, here are 10 financial rules to never break if you want to achieve full financial independence someday:

1. Earn More Money Than You Spend

You obey this principle by always living below your means. Follow this simple rule, no matter what your income and everything else will fall into place. As your income goes up, so will the extra money for savings and investment.

2. Make a Budget and Stick to It

You cannot live within or below your means without knowing what your expenses are and where you can start cutting. The path to that higher knowledge is a budget. There are dozens of free budget templates online. Fill in the template blanks and you’ll learn some rather eye-opening facts about where your money is going. Follow that budget and see how spending discipline give you an immediate leg up on financial independence.

3. Eliminate Unnecessary Living Expenses

Take a critical look at your budget. Are you spending over $100 for cable TV, for example? Cut the cable and save an extra $1,200 a year. Look everywhere and be ruthless.

4. Get Into Daily Financial Awareness Habits That Result in Wealth Accumulation

If your daily habits include a stop at Starbucks for that $5 latte, you are spending $100 a month — another $1,200 a year. Make your own frothy caffeinated beverage from the mixes on sale at your grocery store. Look for ways to save costs and expenses through coupons and sales. Keep track of your monthly bills and look for ways to cut down on energy expenses, for example.

5. Concentrate on Doing Well at and Keeping Your Job

You cannot obey financial rule number one without the income from your present employment. There is a correlation between job satisfaction, promotion and ever-increasing earnings. If you are bored, unchallenged and unhappy with your work, you need to take steps to resolve the matter or you will be stuck in a financial rut.

6. Avoid Money-Making Schemes and Scams

No matter what the slick infomercials and bombastic websites shout out, there is no shortcut to wealth. Anyone who advertises that buying their plan or paying to attend their seminar is manly only interested in making money from you. That meets their financial goals, but detracts from yours.

7. Pay off Your Debts

If you are bogged down in heavy debt and your monthly expenditures are beginning to leapfrog your income, it may be time to consolidate your debts. There are many pathways to debt consolidation. Check around on the web. There is help out there.

8. Pay Your Monthly Credit Card Bill on Time

If you’re carrying a monthly balance on your credit card, you’re swimming upstream in your quest to get out of debt. Consider instead using a bank debit card, or at least get into the habit of paying off your monthly credit card balance.

9. Pay Down Your Mortgage

Your budget will show that your monthly mortgage payment is one of your biggest expenses. Paying off your mortgage early takes discipline and can eat into those excess funds you will begin accumulating through following steps one through eight. However, once your home is free and clear, you have the true wealth of the worth of your home’s market value. When the mortgage payments go away, you likewise have the income excess that becomes a powerful savings and investment resource.

10. Begin a Savings and Investment Plan

Start slow if you must, but save something each month. You’re in this for the long term and your goal is to be debt-free and to accumulate real wealth (i.e., to be financially independent). The savings and investment plan that is best for you depends on your age, situation and how much you need for a comfortable retirement. Again, look around. There are financial experts and expertise out there ready to help.

This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Ascend Investment Partners is not a legal or tax advisor. You should consult with your attorney, accountant and/or estate planner before taking any action.    Ascend Investment Partners did not assist in the preparation of this report, and its accuracy and completeness are not guaranteed. The opinions expressed in this report are those of the author(s) and are not necessarily those of Ascend Investment Partners or its affiliates. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy   Services offered through Kesler, Norman & Wride, LLC dba Ascend Investment Partners, a Registered Investment Advisor. This message and any attachments contain information which may be confidential and/or privileged and is intended for use only by the addressee(s) named on this transmission. If you are not the intended recipient, or the employee or agent responsible for delivering the message to the intended recipient, you are notified that any review, copying, distribution or use of this transmission is strictly prohibited. If you have received this transmission in error, please (i) notify the sender immediately by e-mail or by telephone and (ii) destroy all copies of this message.  If you do not wish to receive marketing emails from this sender, please send an email to garrett@ascendinvestment.com    Please note that trading instructions through email, fax or voicemail will not be taken. 

To Get Started Click Here

Sign Up for Email to stay in touch