Financial independence is not necessarily something that everyone thinks about or strives towards. Many people are happy to remain employed by someone else knowing that their monthly salary will appear in their banks at the same time every month. Others strive towards climbing the corporate ladder and eventually earning the promotion of their dreams.
However, there are others who want to break free from the norm so that they have the time, resources, and freedom to pursue their dreams without waiting until after retirement to do so.
In our previous article, we talk about what financial independence means to different people. In this article, we discuss the benefits of financial independence that can be enjoyed right now instead of waiting until the age of 65.
The key aspect of financial independence is being mindful of your spending habits. Impulsive spending on unnecessary things is one of the biggest obstacles to pursuing and achieving financial independence.
Here are some of the most important benefits of pursuing financial independence:
The unfortunate reality is that job security is becoming a thing of the past. A few years ago, the best thing you could do was stay committed to your job so that one day you can have enough money to retire early.
However, you can lose your job at any time which is not always your fault. In these cases, the company you work for may become liquidated, leaving you jobless. Another example is downsizing, and your position may become redundant resulting in retrenchment. These events can happen to any business and there is no way to guarantee that your job is and always will be secure.
Pursuing financial independence means that you will find other ways to earn additional income. Whether it’s a lucrative side hustle, finding a second job (if you have time to do so), or investing wisely, going after financial independence will offer you a safety net that not every employee can offer.
There may be something you have always dreamed about doing and that something could mean that you must learn a new skill. Having as many skills as possible under your belt opens up several opportunities for you to earn an income and, if you’re lucky, it may be something that you are really passionate about.
Not only does this encourage you to be motivated, it also keeps you stimulated as most jobs can often become monotonous. We believe that monotony can destroy passion and creativity. By learning a new skill or trade, you can use your spare time to do something you enjoy and begin using your newfound ability to earn an additional income.
With this, you will face challenges and obstacles that you may never have faced before, pushing you to grow as an individual, improve your confidence levels, and develop unique problem-solving skills. Resilience and perseverance are key to pursuing and achieving financial independence.
Financial independence doesn’t only require hard work. It also demands careful planning, budgeting, saving, and other smart financial decisions.
When you decide to pursue financial independence, you must be prepared for many things to change, especially the way you work with your money.
An emergency can come at any time of your life. It may be sickness, injury, loss of income, car troubles, or the need to support a family member in need. Whatever it is, when you work well with your money, you are prepared for the unexpected.
When you want to achieve financial independence, you will need to reassess your priorities. This is never a bad thing, although it does often mean sacrificing some things you currently enjoy.
To do this, you have to establish your “why”. Do you want to be financially independent so that you can quit your 9-5 and enjoy life while you can? Do you want to be able to retire much earlier than the average person? Do you want to be able to buy your dream home? Financial independence can mean different things to different people and establishing what it means to you is the first step to aligning your actions with your goals.
When you are financially independent, there are countless doors that could open to you. You don’t necessarily have to know exactly what you want to do once you achieve financial independence, but once you are there, you will have the freedom to do what you want or need to do, without worrying about income.
Here are some things that you may be able to do when you are financially independent:
Easily one of the most satisfying benefits of financial independence is the peace of mind that comes with it. When you have several streams of income, you can feel safe knowing that if something unexpected happens, you will have enough money to support yourself and your loved ones.
As we know, anything can happen, and it can happen overnight. Financial independence protects you from whatever loss, tragedy, or emergency that happens. Peace of mind is a precious commodity which financial independence can offer you.
Our financial advisors in Johannesburg know that with hard work and the right attitude, financial independence is achievable. However, an integral part of achieving it is working with a financial advisor.
We provide financial planning services that are tailored to your individual needs, goals, and financial circumstances. We are here to assist you in achieving you short and long-term goals by assisting you with budgeting, investing, saving, debt management, and more.
Contact us for more information.
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