How Do You Become Financially Independent?
So, how do you become Financially independent (FI)? What do you do? Well, first you have to have expendable cash. That is, money that is not needed to pay your bills, your mortgage etc. You have to use that expendable cash to pay off debt first and then to purchase products, items, assets that provide cash flow. You save the cash flow from those assets and purchase more assets that provide additional cash flow. Repeat the process again and again and again. Sounds simple? It’s simple but it’s not easy.
What is Expendable Cash?
We determined that to become financially independent, you must have expendable cash. The problem is the expendable cash part. How do you get expendable cash, you might ask? The answer: however you can. You can create a side hustle; you can abide by a strict budget; you can cut out cable TV; you can stop or cut back on eating out or all of the above plus others. The key is discipline and commitment to your goal.
Establish Your “Why”
Your goal is your “why.” Why do you want FI? Is it so you can retire early and spend time raising your young children? Is it so you can take care of your elderly parents? Is it so you can volunteer to help those less fortunate than yourself? The experts in the area agree that your “why” must be huge. It must be big enough to keep you motivated and disciplined so that you methodically and without fail set aside your expendable cash every single month. Your next step: Decide your “why.”
The next blog post in this area will discuss how Renee and I put aside our expendable cash the first month. Thereafter we will track our expendable cash every month until we purchase a product that provides cash flow for each of us and our families.W