Attaining what everyone consciously and subconsciously wants
- Understand the ins and outs of financial literacy. Learn from billionaires such as Mark Cuban and Warren Buffett.
- You must have an entrepreneurial mindset. It is virtually impossible to be close to attaining financial independence without the willingness to take high risks.
- Develop and diversify your income streams as much as possible, you never want to be entirely reliant on one.
- Build a financial cushion for when life happens
- Prioritize scalability, customer retention, and profitability for all businesses you build
Let’s face it, we all love money whether or not we want to admit it. It’s not only a necessity to pay the bills and for gas, but also for us to continue indulging in the things we love doing.
However, we also want to attain financial independence for reasons such as not having to worry about when the next cheque is coming, but also to pursue things we’ve always wanted to do in our lives.
But how can you do it?
We’ll briefly explain 5 basic keys to financial independence in this article.
1. Financial Literacy
The best first initiative to take is to become financially literate. Immerse yourself in the world of finance, understanding concepts such as budgeting, investing, and financial planning. The more financially literate you are, the more informed decisions you’ll be able to make.
You should also make the effort to understand and study what well-known billionaires have done to get to where they are today, with Warren Buffet and Mark Cuban being excellent examples.
2. Entrepreneurial Mindset
If you want to traverse down the path of attaining financial independence, you must have an entrepreneurial mindset. This is defined as being willing to take risks, being patient with the results, and learning to love and trust the process irrespective of how slow progress may be.
At the surface level, entrepreneurs are problem solvers who seize any opportunities that come their way to create value, but it almost never comes immediately, and that is the first thing you must understand.
3. Multiple Income Streams
You should look to develop multiple income streams to not be solely reliant on a singular revenue stream. This includes working on as many side-projects on the side as you’re able to spend energy on at a deep level in order to create a safety net and provide stability in the long run.
Income streams may also include ventures such as investing and sources of passive income.
4. Savings and Investment
Build your financial cushion with savings and investments. Look to save a certain percentage of your monthly income and any returns on investment you may receive. It is also pertinent to have an emergency fund to go along with your long-term savings, for you never know when life may happen.
5. Strategic Business Growth
For any business you build, ensure that you prioritize scalability, customer retention, and profitability. Develop a business plan that covers every step of the way, such as expansion strategies, marketing efforts, and financial goals.
Once again, whether or not you want to admit it, we all love money, and nor does it ever hurt to have extra cash lying on the side. And if there were a composition for the golden key to financial independence, it’d be composed of being able to leverage your natural aptitude with the financial literacy you’ve attained, complemented by the entrepreneurial mindset.