Step 1: Start Now discussed how to get to know your money mindset and put it to use towards your financial goals. Now, we are going to get into the nitty-gritty of becoming financially independent.
Build seed capital daily: invest more now.
The key to financial independence is building seed capital daily and investing more now. By saving and investing more now, you take advantage of the opportunity to compound the growth of your money over time. You to build seed capital daily two ways: (1) by saving money that you are earning by the hour, and (2) by making your existing capital grow by earning its own income.
You start with what you have: your seed capital. Over time, you invest it in more and more productive assets until you have enough passive cash flow to supplement or replace your job. Here is a quick summary of the steps to building seed capital. Watch for many articles to come on this subject.
- 2a: Learn what seed capital is and how compounding works for you.
- 2b: Build an emergency fund equal to six months of expenses and immediately reduce your financial stress.
- 2c: Lower your break-even point and make it easier to become financially independent from your job.
- 2d: Keep more of what you earn by avoiding personal debt, protecting your credit, and getting away from the spending tomorrow’s income today.
- 2e: Keep more of what you earn by minimizing taxes and start adding lower-taxed sources of income to your financial mix.
Dana Kunz