7 Steps to Financial Independence To Follow
1. Set your goals:
When you have set your goals, set a time for when you want to achieve them, such as children's education for 20-25 years, buying a house, etc.
2. Negative Net Worth:
Is the sum of your assets minus the sum of your liabilities (debts). The more are outstanding, there is a negative net worth.
3. Financial Solvency:
Try the loan snowball method to knock out each loan one by one
4. Financial Stability:
Once you pay off all your unsecured debts, you reach financial stability.
5. Halfway point:
It took you ten years to reach half the FI, so it probably will only take you five years to build the other half of your goal.
6. Financial Security:
When you can cover your basic living needs with passive income from investment
7. Financial Independence:
When you can cover all your living expenses with passive income from investments
As long as you're doing a job you don't love, you're running into a rat race.
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