5 Tips to Help You Achieve Financial Independence

Everybody wants financial independence, but there is no easy “click here” option to attain it. There are of course the lucky few who get to experience a lifestyle of unabashed leisure without the burden of work or debts. Unfortunately for the rest of us, we are faced with a lifetime of wondering if we’ll be able to pay our bills, eat, take care of our child and be fortunate enough to enjoy our later years. Many financial analysts say that fiscal independence can be achieved by anyone with enough steadfastness and a healthy dose of gumption. Here are 5 tips to help you achieve financial independence.

  1. Keep an eye on your credit score. One of the best ways to reduce debt, get approved for loans and have better financial stability is to make sure that your credit score is high and your report is clear. It is not unlikely that there might be mistakes on your credit score – having them rectified will alleviate unnecessary debts and raise your credit score. If you do have debts – maybe that you don’t know about – reviewing your credit score will give you a chance to make a list of all the debts you must pay off.
  2. Keep a schedule and make a list. Knowing exactly what your overhead is – rent, miscellaneous expenses, grocery bills, electric – will give you the opportunity to make a more realistic budget. Having a broad overview of all your expenses and payables will allow you to better meet your fiscal goal, pay for the things you need, and hold off on everything else – this way you can start to save money, which is the ultimate goal.
  3. Look at your bank statements. Going over all your bank statements will allow you to have a broad overview of all your monthly expenses. You will also get a chance to look at some of your more extraneous expenses, like shopping, dining out and luxury items. If you really want to have more financial independence it might be wise to see if you are living outside your means or not. Spending more money than you have is a sure fire way to go broke or into debt.
  4. Hire a great accountant. An accountant will be able to find areas in your expenses that you can eventually write off from your annual tax returns to the IRS. They might also give you advice on what invoices and receipts to save so that you can save money on taxes. By doing this you can possibly save upwards of thousands of dollars on taxes that are crucially responsible for your financial independence.
  5. Lastly, just like you would hire a great account, it might also be wise to hire an excellent financial advisor. Just like an accountant can help you save money on taxes, a financial advisor will be able to give you advice on what mutual funds you should be putting your money into so that you can make your money grow. Financial independence is all about making your money work for you and not against.