3 Strategies to Reach Financial Independence

People who look at their personal financial situation quickly think that they are doing everything they can to save money. In many cases, however, this is not the case. Often, you see them doing the opposite. In this article we discuss 3 strategies you can use to achieve financial independence.

1. WORK ON YOUR MINDSET

First of all, your mindset is extremely important. After all, personal freedom cannot be expressed in money. Therefore, you cannot achieve personal freedom by simply earning more. You have to dare to be satisfied at a certain moment. If you’re not satisfied at the age of 21, when you earn $50.000 a year, you won’t be satisfied in 10 years’ time, when you earn $300.000 a year. Being satisfied with your current life pattern is also a form of personal freedom.

2. DISTINCTION BETWEEN VALUE AND COST

It is important to distinguish between values and costs. We often make decisions based on what something costs, while we do not value it for ourselves. If you only have $1000 to spend on a monthly basis, you are looking purely at your income. If you then go to the shop and see an $800 computer, the computer just costs $800. For you, however, the real value is a lot higher than for someone who earns around $5000 a month. The computer still costs the same, but the value can differ by person.

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3. WORK UNDER A REWARD SYSTEM

Reward yourself in some way when you do manage to save by reducing your daily spending. For example, sometimes it can be frustrating to have to prepare lunch every night for work the next day. It can be very difficult to keep this up for a long time, too. It is therefore advisable to implement a reward system for this. If you have managed to make your own food all week and take it with you to work, treat yourself to lunch in a restaurant on a Saturday or Sunday, for example.

This doesn’t have to be an expensive lunch. You shouldn’t blow all the money you saved on making your own lunch on some lavish treat for yourself, but just a small reward for your efforts will go a long way. Celebrate your small victories without spending extreme amounts of money. If you want to save $100 a month, don’t think about the end of the month. Split it into days. If you save $3 every day, you’re almost there!

Source: goalcast.com

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