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GATEWAYS TO FINANCIAL INDEPENDENCE




Economist says that men’s wants are always above their means. However, despite this economic principle, one can definitely attain financial independence. Financially independent people have assets that generate income (cash flow) that is at least equal to their expenses.
A person’s assets and liabilities are an important factor in determining if they have achieved financial independence. Financial independence therefore means being able to meet your expenses from your generated incomes. Despite the presumed economic depressions experienced around the globe, you can still attain financial independence. This can be achieved through:
1) Buying income generating assets
There is one adage I heard from a gentleman which I learnt a lot from. This adage states that “rich men buy assets but poor men buy liabilities”. If you want to attain financial independence then endeavor to spend your monies on assets that generate income for you rather than stuffs that only increases your expenses. To be able to let go asset that increases your expenditure base guarantees your path to financial independence. So when you set off to buy anything, think of its benefits and see if it will provide or help provide financial freedom to you.
2) Spending less than you earn
Never allow your expenses to run in excess of the amount you earn. In fact you should ensure that your expenses are far below your incomes and that is how to experience financial freedom. You have to reduce your rate of expenditure to help avoid borrowings which require payment of the principal amount plus interest therefore draining the little finances you have worked for.

So you see if you really want to experience financial independence then reduce your expenditure and ensure that they are not more than your incomes.

3) Developing the habit of investment.
Financial analyst say that a cedi today is not the same as a cedi in the next five years due to a principle termed as time value of money. To mitigate this currency loss, it’s always advisable to engage in investments. Not any investment however is good. You have to look at the investments vehicles that meets your interest and personality and invest your funds in them. This is one other way of also attaining financial independence. You being able to invest your funds saves you from impulse buying and other unnecessary expenditures.
4) Avoid competition.
Sometimes people do buy stuffs not because they want it but because they want to be like other people or want to please their comrades. If you really want to enjoy financial freedom then you have to avoid competing with people on material stuffs that does not increase your income base but rather increases your expenditure.
These acts are very essential if you want to enjoy financial freedom so try and apply these in your life and you will be on your path to financial freedom.
By: Asare Otoo Mensah Joseph

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