Zorica Nastasic / Getty Images
Financial independence — having enough money to cover your living expenses without working — is a goal for many. Some are able to build wealth and attain it much earlier than others, whereas some have the unfortunate experience of never being able to afford to stop working.
No two paths to financial independence are exactly the same, and that means there’s no clear road map to get there. However, learning from others can be a great option when charting your path. GOBankingRates spoke to three individuals who have achieved financial independence to learn more about what they suggest for people on the journey to financial independence.
Learn Some Basics Before Taking Action
Learning before taking action is important, but it can be approached differently.
Andrew Meyers, a semi-retired cybersecurity specialist, recommended reading three books that changed his views on personal finance: “How Money Works: The Facts Visually Explained” (by DK How Stuff Works), “Rich Dad, Poor Dad” (by Robert Kiyosaki and Sharon Lechter) and “Invested: How I Learned to Master My Mind, My Fears, and My Money to Achieve Financial Freedom and Live a More Authentic Life” (by Danielle Town and Phil Town).
Meyers also recommended both the weekend course and a year’s worth of classes at Rule #1 Investing. While this can cost about $10,000 over a year, Meyers said this class is what solidified his learning for long-term independence. From this learning, he said people can avoid jumping into something that seems “hot” but has a lot of risk. Lower risk with long-term dividends may be a better solution for most people.
Alexia Kaz, a PR strategist and founder of several businesses, suggested learning skills and platforms. She recommended learning how to use Facebook ads, send unsolicited (cold) email and use Amazon’s marketplace. Learning how to drive traffic, grab attention through ads and email marketing, and tap into a massive marketplace through online courses or free videos will give you great potential for creating passive income without working in the future.
Learn To Organize Your Time
Kaz highlighted the need to organize your time as one of the most important factors, beyond other types of “get organized” advice. How much free time you have will vary based on whether you’re single, married or have kids, but you need to set aside time for learning skills, growing your skills and putting them into practice.
You won’t have time for these tasks if you don’t make time for them, which can be more difficult when you have additional family responsibilities, but “you just have to get better at scheduling your time.”
Understand That Your Situation Will Change
On your path to financial independence, it’s important to understand that your situation will change over time.
While some may associate financial independence with penny-pinching, that’s not always the case. Brenda Christensen, a previous National Entrepreneur of the Year award winner and principal at a public relations firm, said, “It takes a lot of discipline, and you have to forgo a lot of lifestyle perks … but it’s well worth the journey and ultimate reward of financial independence.”
This may be easier when you’re young and single, but that doesn’t mean older people “can’t also trim down and do what’s needed to be successful,” she said. “It’s just easier if you’re younger.”
Meyers echoed this sentiment, saying that budgeting and making changes to spending are more complex when there’s a family involved.
“Also, with a partner or a family, you need to have them on board as well if you plan to cut costs or live frugally. If everyone isn’t in agreement, the road will be much more difficult and may not be possible at all,” he said. “Compromise if you need to. Something small saved and invested is better than nothing at all.”
Start as Soon as Possible
All three agreed that you should start as young as possible, but they also agreed that it’s never too late to start.
“The earlier you start, the faster you will compound money and the faster you will become independent,” Meyers said.
More From GOBankingRates
