Do you also long for financial independence?
But don't you (yet) have a plan or strategy on how to get there?
Well then you should read these tips carefully.
Because they give you concrete steps to get you started.
Apply them today to improve your finances.
You achieve financial independence when you can live on your passive income . In other words: you no longer have to work to pay bills. With the return on your capital you can do whatever is necessary. Such as interest on your savings or returns or your investments.
The exact moment you reach this varies per person. It is quite dependent on many factors. What lifestyle you want to be able to afford, for example. If you want to live more luxuriously, you will have to receive more money. If you are more economical, you will sooner be free from the obligation to work.
How quickly you can achieve financial independence also depends on this. And yet there are a lot of things you can apply today to speed up this process. Often this is simply a matter of discipline, but also of knowledge. That is why we are happy to share our tips with you so that you can get started.
Our current society is structured in such a way that everyone goes along with 'the system' : you go to school, then you go to work for a boss and when you are old enough you retire. Of course that does not work at all wrong and we have seen our current economy rise to great heights with this principle, but this means that you work for someone else all your life. And therefore depend on that person because your boss decides what you do, at what time and where.
And even if you become self-employed or your own entrepreneur, you still depend on customers, suppliers and all kinds of agencies to be able to afford your life and you keep running to get money in. Because every month you still have to pay your mortgage, your rent, fixed costs, groceries, individual expenses, health insurance and so on.
How do you escape this? How do you stop this continuously rotating exercise wheel without falling completely? Not by jumping out in one go, that's difficult. It is gradual, small steps to become less and less dependent and thus less to run on the wheel, as it were. Until it almost comes to a stop, then you can take the plunge. You need a plan for that, a strategy.
Ultimately, the most important thing is to ensure that you are getting passive income. You keep investing in it until this income is high enough to pay for everything. In the beginning this goes slowly, but if you always keep reinvesting your return in new passive income, it will go faster and faster .
So take heart in the beginning, that's the trickiest part. But you get there, with these three steps, which we'll go into more detail below:
First of all, start to limit your expenses. This sounds strict but it is not. It is actually amazing how thoughtlessly or often even unconsciously people spend money for which they had to work so hard. You probably too, even if you don't realize this yet. While that money can be a step towards financial independence, because the trick is to keep more money so that you can invest it in passive income, but more on that later.
We don't mean that you should necessarily let things go. Do you think it is important to be able to eat out once every month, then do so. There is no point in being independent in a life you don't like. Then you will not keep it up. Only you decide what standard of living you want to maintain and thus how much money you need each month.
There are people who go completely “off the grid”. Let's say living in a cabin on the heath without water, electricity or any utilities. Yes, you will indeed have no more costs for this, but in the Netherlands this is difficult. Moreover, you always keep compulsory expenses such as health insurance, so you cannot go out without money at all.
However, the point here is more that the things you do spend money on can often be much cheaper! And it's not even difficult to implement those savings. Read our tips to spend less money today through simple actions .
In total we have more than 10,000 US dollars in saving tips for you with which you can save without actually noticing anything. You can keep doing the same but for less. You really don't have to go through all our blogs for this because there are now a lot of them. Just take our money saving test , then you will be through it in 15 short yes / no questions and we will cover all the costs of an average household in NL.
Saving more money by saving is an important first step, because it prevents “unnecessary loss of money”. But on the other hand, there is of course little scope here, there is a limit to how much you can save because in Western society you always have enough expenses left that you cannot avoid.
The next step, therefore, is to bring in more money to go get. You can ask your boss for a raise, look for a job with a higher salary or even take an extra job on the side in the evenings or weekends, but you don't even have to .
Nowadays you can earn very good money through the internet . There are several good ways that we will discuss with you, where we have also tested the reliable sites where you can already do this today . And do not think that this is a lot of work or yields little.
There are already possibilities where you can earn several hundred US dollars per month without even thinking ! And everyone can do it, without investment / investment, without risky investments, without technical knowledge to build a website.
Combine the methods to earn even more. The variety can also be pleasant for you. Which methods you ultimately find work best depends on your own preferences and goals, but also how much time you can make available for them. But everything is included in order to be able to put more money into your passive income.
Financial independence is actually all about your passive income. Steps 1 and 2 actually only ensure that you can realize this .
But what are passive sources of money? The point is that there is no longer a direct relationship between your efforts and income. It goes without saying. So not that you are paid per hour that you have worked. Because as soon as you stop doing that, your income will also stop.
A good example is interest on your savings account. You don't have to do anything for this, and yet it is credited every year. Okay, it's bizarrely little now, but this is the easiest example to use to explain.
You would rather want a higher return than 0.005% interest on savings, of course. And there are quite a few options for this. And not just investing on the stock market, because of course that's what comes to mind first. However, keep in mind that investing or investing always involves a certain risk. Sometimes directly, sometimes indirectly. And the higher the risk, the better the return.
Read our article the best way to invest / invest money here . Again, you decide which method suits you best. Also use different methods and providers to spread your investments, not only for more return but also to limit risk.
The point is to put enough into the different investments that they will yield so much return that you can live on it. With your first deposit, this is not much, but the second time you invest you can add the return on your investment. And double next time. And so on. So it goes faster and faster.