Financial Independence: Why it needs to be your #1 Priority
Attaining financial independence means you have enough money to live the life you want to live.
It means you can afford the things you want and can take care of those who mean the most to you.
If you want to have the highest quality of life possible, then you need to make financial independence your #1 priority.
Achieving financial independence will do a number of things for you, like
- Give you freedom from a job you hate
- Ability to travel
- Incredible confidence
- Power over your life
- Better relationships
Gives you freedom from a job you hate
When you have control over your finances, you don’t have to work for somebody else.
Having your own income means no wage slavery.
Ability to travel
Another great benefit of having money is the ability to travel. If you want to explore your country or explore the world, you need money.
You need to have flexibility if you want to travel.
Whether you want a longer vacation, or even completely relocate to another country entirely.
Becoming financially independent will grant you this ability to travel where you’d like, when you like.
There’s an incredible confidence that comes with financial independence.
You can make money on your own, without depending on someone or something else.
Very few people in the world know this feeling. Those who do take the word confidence to whole new level.
Power over your life
The confidence doesn’t come from nothing.
You feel great because achieving financial independence gives you true power over your life.
Money is access to resources. If you control your own access to resources, you’re a powerful position to make the decisions you want to.
Every guy on the path to manhood needs to become financially independent so he can know the power it hols.
It’s shocking how much the lack of money or control over your life affects relationships… or maybe it isn’t.
Relationships meaning your friends, family, or whether you’re fucking multiple girls, have a girlfriend, whatever.
Your relationships with other human beings will be better when you’re financially independent.
You can do the things you want with those you love. And you won’t have to do something you hate in order to make ends meat.
That can kill your relationships with other people.
The way you interact with people and your outlook on life will dramatically improve when you control your own cash.
How to achieve financial independence
There’s a few ways to obtain financial independence.
Option 1: Build your own successful business
Building your own successful business means you control your own income.
You’re the boss. Financial independence is established in your life because you pay yourself.
Building your own business is the best way to own a business. And ownership is how you get rich.
Option 2: Save up enough money to never have to work
Another option to become financially free is to save up enough money.
With enough cash saved up, you won’t need to work.
This requires an insanely high income, or a moderate income on a minimalist lifestyle with little to no responsibilities. You need to figure out how to spend less money and save the money you’re making.
Option 3: Generate Passive income that’s greater than your expenses
Generating passive income that outweighs your expenses is another option at reaching financial independence.
However, you generally need to have savings to invest in passive income options like mutual funds or real estate.
And even then, the money you’ll from this will help to get you richer. But it won’t make you rich in the first place if you have little money to invest.
That being said, a blog or youtube channel can generate passive income with little money to get started. You’ll need high quality content over a few years, a solid niche, and luck in order to make this a reality.
How to really achieve Financial Independence: Hybrid Option
If you’re able to start your own business without taking a job then do that right now.
However, most people, myself included, had to start by working for someone else.
Working a job you hate sucks ass, but you need to have enough cash for living expenses and your business.
Stacking cash at a job
Achieving financial independence for most people means stacking cash at a job.
While stacking that cash you need to start your business on the side. It’s possible to start building your business from scratch once you quit your job, but not recommended for most guys.
Building the side business
Starting a side business will give you the confidence that you can actually make it happen.
If you’re making $1000 or $2000 a month from your side business, then you’ll have more assurance knowing you can scale that up.
It’s difficult to build it on the side. I know it can be draining. But it’s the best chance you have at gaining true financial independence.
Quit the job
Once your business can cover your expenses and you have some savings (ideally 20k or more), then you can quit your job.
If you’re covering your expenses doing your business part time, then you can definitely scale your business doing it full time.
Especially if you’re selling a service like marketing, web design, programming, etc. to businesses where there’s a proven market and it’s just a matter of grinding.
Selling a service to business owners will ensure you can control your income. Aka, B2B sales.
B2C sales, which is when you sell to consumers, is more hands off. There are many benefits to selling a product that you don’t have to sell directly, like the fact that you don’t have to sell directly and cold call/email.
But… you also have less control over your income and are at the mercy of the demand.
If you’re selling a product to consumers, then there’s more risk involved. I recommend only doing this if you’re extremely passionate about what you’re selling, or if it’s your second business.
Grow the business
You’re on your own and it’s time to grow the business.
If you need work done it’s best to hire contractors at first until you can really do your homework on bringing on full time employees.
Whether you want to hire full time employees is up to you. You can still have financial independence without them, and in fact, you’ll be more independent in general this way.
Nevertheless, if your business is growing past six figures and you really want to scale, you’ll likely have to hire people at some point.
It’s up to you whether you want to keep it a 1 man show and completely own your time or hire some employees to do more of the busy work.
The catch is you’ll have to manage them, which will take a massive amount of time. Ultimately, it comes down to whether you want to be your own boss or someone else’s. No wrong answer, just preference.
Generate Passive income
Now that you’ve built your business, it will take the majority of your time.
You’ve already achieved a decent level of financial independence at this point. However, it’s all about progress.
Rich people stay rich and get richer by making their money work for them.
Which means generating passive income. Passive income is definitely possible, it just takes either a lot of money or a lot of time to invest in.
For example, starting a blog and gaining lots of traffic takes tons of time and consistent effort over years, but takes little money.
On the other hand, it takes a lot of money to buy rental properties, but little time if you can get past the paperwork with a good agent.
I usually don’t recommend real estate for most guys, but that’s because I’m usually talking about buying a mortgage. If you have money in the bank to buy some rental properties in cash, then it can be a great way to generate passive income.
Ways to generate passive income and achieve higher levels of financial independence:
- Real estate / rental properties
- Starting a product based business selling digital products (takes work at first to create)
- Buy an existing online business
- Affiliate marketing on a blog
- Dropshipping (overcrowded but can be worth trying if you have play money)
- Investing in mutual funds
- Investing in businesses
Mutual funds are probably the safest option, as a fund following the S&P will average around 8% return each year.
Once you build your money reserves, you can set aside some to invest and test the waters.
Generating passive income in addition to the money you’ll be getting as a business owner will out you on the path to becoming wealthy.
Things not to do when you’re trying to becoming financially independent
If you want to achieve true financial independence, then you need to avoid certain things that can destroy this possibility.
- Buying a sports car when you’re not rich
- Debt of any kind
- Having kids before you can afford it
- Spending money on hookers / strip clubs
These are not created equally.
Getting married, even if you’re rich, can fuck up your financial independence.
And if you’re not rich, i.e. you’re average, then it will order any chance of you obtaining financial independence once you’e divorced.
But the other things like buying a sports car or going to strip clubs will also hold you back.
You can do these things once you’ve achieved financial independence. Not when you’re still building your wealth.
Wealth and true Financial Independence
Building real wealth is how you become fully financial independent, to the point where you can live well even if you closed down your business.
And true financial independence means you’re wealthy.
It doesn’t mean just taking care of yourself. Independence means you aren’t dependent on anyone, but there might be those who are dependent on you.
Your parents, your kids or future kids, those who you care about.
Being able to take care of yourself is one thing, but real financial indolence means you can take care of those who need you when they need it.
Some of us have no responsibility now, but that won’t always be the case. Unless you live under a rock, you want to have the ability to provide a great life for yourself and your people, whoever that may be.
Attaining financial independence means you’re free from the bullshit.
It means you can use your wealth to create a better life for yourself and those around you, and never have to be a slave to some else’s dream.