Sunday, September 13, 2009

7 Power Habits To Make You Financially Independent

Are you always running out of money? Do you have to borrow sometimes to meet your basic needs? Are you often late in paying your bills?

If you answer mostly yes, then you are in danger of becoming financially unstable. Should any misfortune occur in your life, like loosing your job, or falling ill, it will bring you into financial ruin.

The flipside of financial ruin is financial independence. Being financially independence is having the ability to determine the direction of your life, and to support yourself through your own efforts. These 7 power habits will guarantee your financial independence.

  • Start with a vision. What is your vision for your life? Do you see yourself being financially independent? Do you want a stable and secure life for yourself and for your family? If so hold that vision constantly before your mind’s eyes, and let every choice and decision you make lead to that end.

  • Generate income. Your income will be the foundation of your vision. This will generally be income from your job, but do not be content with that alone. Increase your income by investing your time and money into a business that you feel passionate about, and make sure it will work. If it does not work, you will certainly loose your money.

  • Put some money away for your future. Every month allot a percentage of your present income to savings. Avoid touching it unless it is absolutely necessary. Money in the bank is secured and can also earn interest: although you can earn more interest when you invest in stocks and shares, but make such investment only with money that you can afford to loose, because you may loose it.

  • Spend your money wisely. If you are spending all your present income every month, then you are not spending your money wisely. Buy things that you really need. Do not aim at showing off on your friends that you can outspend them. Avoid incurring excessive debt, as credit card debt could lock you into a situation where the bulk of your income goes to paying debt with insufficient amount left to meet your present living expenses.

  • You must plan ahead for events in the future. Make sure that your financial assets are secured. Insure your life, health and properties, even the lives of your loved ones. Be sure that all these transactions are legal, and that you have the financial means to maintain them.

  • In relation to your future plans, your health comes first. The way to be financially independent is when you are physically and psychologically able to do so. Have regular check ups with your physician. Do not smoke. Have a healthy diet, and exercise regularly.

  • Financial independence demands confidence and focus. Do not be distracted by whimsical desires or procrastination. Every cent and every minute counts, as what you do today will determines what you will have in the future. But, remember to be compassionate to the needy and kind to your neighbors.

These pointers are for informational purpose only. Consult a professional before investing into any business, or in the Stock Exchange.

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