Skip to main content

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

Comments

Post a Comment

Popular posts from this blog

GAPNEWS Inflation rate for May drops to 9.4% Inflation rate for May 2019 recorded a marginal reduction to 9.4 per cent down by 0.1 percentage point from the 9.5 per cent recorded in April 2019. Deputy Government Statistician, David Kombat has been explaining to the media in Accra that the rate recorded was highly influenced by the declining rate of food inflation in the measuring basket. "We have seen a slight decline in food prices especially vegetables as a result of the weather patterns. This usually happens when we're entering into the raining season and commodity prices begin to experience some dips but this is also accompanied by some reductions in certain components of the non-food items" he said. Upper West recorded the highest general inflation of 11.1 per cent whiles Ashanti the highest rate in food inflation. "The food and non-alcoholic beverage group recorded 7.3 per cent, a reduction of 1.1 per cent point lower than the rate recorded in April ...
Post a Comment
Read more
GAPNEWS Ghana moves to capture US$2.4bn China soya market. The hefty tariff on soybeans from the United States has caused a 17 percent import decrease of the produce into China in February 2019, being the lowest level recorded since 2015, General Administration of Customs – Chinese statistical agency, has revealed. In 2017, U.S. soybean exports to China reached a volume of US$14.573 billion. Currently, the United States is the world’s largest soybean producer and second largest exporter, after Brazil. On the other hand, China is the world’s largest importer of soybeans – imported 91 million tonnes in 2018 market year as against 94 million tones the previous year. This suggests that the trade war between the two largest economies has created the opportunity for more than US$2.4 billion market share of soybeans that countries producing it can compete. Although, imports of soybean to China has reduced by 17 percent, this does not mean that consumption has reduced in similar terms...
Post a Comment
Read more

Reshuffle does not increase Bawumia’s electoral fortunes – Political Analyst

GAPNEWS Reshuffle does not increase Bawumia’s electoral fortunes – Political Analyst Political analyst at the University of Cape Coast, Dr Jonathan Asante Otchere, has stated that the much-awaited ministerial reshuffle by President Akufo-Addo does not inure to the benefit of the NPP’s presidential candidate, Dr Mahamudu Bawumia, going into the December 2024 elections. Dr Otchere made the assertion in an interview with Alfred Ocansey, host of TV3’s current affairs programme, Ghana Tonight, on Thursday, February 15. According to Dr Otchere, the President lost an opportunity to cut government expenditures. Civil society organisations and the public have criticised the government for its excessive spending leading to huge borrowing. “If you keep supplying members of your party to occupy all these positions that have become vacant so to speak, in actual fact, this particular decision by the President will not in any way affect positively the electoral fortunes of Dr Bawumia,” said the polit...
Post a Comment
Read more