FINANCIAL INDEPENDENCE – RISK OR OPPORTUNITY?

The journey towards a freer life usually also means increasing financial freedom and independence. At different stages of the journey and for different passengers, this independence is defined in different ways. However, the idea is that dependence on paid employment will gradually decrease and at the same time, time-consuming (and money-consuming) freedoms of choice will increase. Vola!

A more financially free life means that you can, for example:

  • decide more freely about your time use and circadian rhythms
  • make you happy and enjoyable things, travel, do hobbies…
  • spend more time on important things and people
  • to work for the satisfaction and meaningfulness it brings, not so much because it is compelled
  • take care of your well-being and endurance
  • be more of the lord or mistress of your own life
  • … This is possible because non-work income covers your expenses (either in full or in part)

Why on earth then do more not strive more vigorously for such a life? I guess the biggest reason is that we haven’t been offered a model or knowledge in the past that there are alternative ways to earn a living and live their lives for paid work and pushing the career pipe.

Perhaps such self-constructed and deviant freedom projects have been seen as somehow harmful and dangerous to society. Or just as a privilege of the rich elite.

And it is certainly so that the traditional working life pipe, carried to the end, enduring to the official retirement age, is perceived as an easier and safer option. Fortunately, with the sharing of the Internet, social media, and experiential knowledge, more and more information and examples of other options are also available.

However, the goal of financial independence is still associated with some taste of speculation and gimmicky, isn’t it?

That freeing yourself from paid work wouldn’t be quite an honest mind? This kind of idea is pretty nonsense. Everyone has (and only a few will do) the opportunity and the right to start taking (no matter how small) steps towards an independent lifestyle. Although immediately.

Yes, there are enough people at work, even if some people build a more independent livelihood for some part of life.

How to start creating financial independence?

For most, everything is based on their work and doing. Of course, those with large legacies can create independence more quickly and easily, realizing and investing their wealth, but in this case, I will focus on ordinary people. The foundations for prosperity and financial independence are created mainly while at work. Even if paid work does not enrich, the basis for prosperity or financial freedom can be created through paid work.

Let’s consciously start saving and investing savings so that money starts to make money and bring you an income stream that is independent of doing paid work.

It is worth starting some kind of investment activity at the youngest possible time, as time is the investor’s best friend. Most can smoke their consumption so that at least € 50-100 per month remains to be invested. When you eat (i.e., save), that hunger then increases. And the amounts invested can start to increase as skills increase and, of course, within our resources.

Interest to interest calculators provides a tool (thank you, Rich Hermit!) That allows you to see how money works for you and you can even get into a situation where you live on the interest on your investments without having to interfere with your capital! Before this can be achieved, some savings and assets to be invested/realized must be accumulated. This accumulation should start now.

In addition to saving and investing, one can start to systematically emphasize one’s income generation towards semi-passive income. You can start building an income that is not tied to selling individual hours worked to an employer or client.

Of course, creating such income streams requires frontloaded work, building a business base (system), but in just a couple of years it is possible to create income streams that do not necessarily require 8 (-12) hours a day, but maybe a couple of hours a day will suffice.

These planned revenue streams can start to be built on, for example, sales of digital products, referral/partnership marketing, royalties, royalties, network marketing, investment income such as dividend or rental income, etc.

At the same time, increasing the share of such passive or semi-passive income can reduce the need to do paid work and be freer to decide on one’s schedules and life.

All income is subject to taxes (income tax or capital duty) as income is used to pay, so it is not a matter of Social Fraud or any free-riding chain. It is an opportunity for people who think and act independently to live differently. The opportunity to live part of your life more freely.

The need for paid work can also be reduced by changing their consumption habits. In many cases, you can compromise several hundred on your monthly expenditure without compromising your quality of life. On the contrary, simplification and rationalization are likely to increase satisfaction.

Life according to your values ​​- you will not regret it

By working resolutely and taking steps towards financial independence, say for ten years, you will begin to see a life in which you will not have to compromise on what you feel are most valuable to you, at least because of work and constant care for money.

And that ten years doesn’t have to be a sky of pain, but it can make it just as inspiring and exciting a journey as you want to be. Create new revenue streams for things you love to do and feel important.

If we once have this one life, shouldn’t we make it so good, happy, and unique that we don’t have to look back in the last meters of life to regret it?

Therefore, it is worth clarifying your priorities and thinking about whether you take these into account in your life and everyday life. Do you do what you want? Do you live the way you want to live? If not, why not? And what could be done about it?

At least I have woken up to the fact that I want to live my life a certain peace of mind that my salary employment is missing, or it was incomplete. I want to be able to spend peaceful days and selfish moments. Do and experience things alone and with loved ones. Enjoy the beauty of the environment, wherever you are. Be present so I can hear myself better and take care of myself. Silences not only the external but also my internal hustle and bustle so that I can hear others better.

Running on a squirrel wheel began to block these things, so my only chance was to start looking for and building another path, a path toward my freer and more relaxed lifestyle. For if life is too full, one easily becomes a bystander in the heat of performance.

Building a self-sufficient entrepreneurship, small gig work, etc., which you feel you need for your financial success towards greater financial freedom, is well suited to a looser lifestyle. In general, work, which can be largely regulated by oneself, is already a significant factor in bringing freedom to life.

Steps to creating financial independence

There is already a lot of material, books, and several good blogs and Facebook groups to create a more financially free life and financial independence.

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