Everyone wants to be financially independent as soon as they realize what financial independence means, but can everyone achieve it? Chances are that most people can even if everyone cannot. So, if you are below 18 and want to start your journey towards financial independence, wait no more and apply these guidelines to your life. So, let us dig in deeper!
- Save, save, and save
Becoming financially independent by 18 comes from various factors. But let us start from the root cause and foundational structure that can help you achieve financial independence. Yes, you heard us right! It is nothing else but the simple act of saving.
As you start saving earlier in your life, you realize the importance of it and how to use that money in a better way for later financial independence. So, every time you receive money on special occasions and festivities like Christmas, birthdays, easter, or any occasion at all, simply put that money in a safe space.
- Find your passion
Always remember, the money earned through your passion and skill can help you achieve bigger and better. It can also help you achieve sooner. Unlike traditional methods where you study for an undergraduate degree till 24-25 and then start working, you can use your skills to start a venture that can help you earn by 18.
Listen to yourself, explore your interests, and find out your key skills to transform them into a business plan that could help you achieve. After all, no one knows you better than yourself!
- Diversify the money you save
The key to becoming financially independent by 18 is to diversify the money you save. Yes, it is highly important to start a venture that could help you sustain, but what if that venture cannot sustain itself in the long run. You must always have a back-up plan, right?
So, invest in diverse ways to generate a revenue out of your savings. One example could be buying stocks of a company you like. You never know when you could bloom into a life even better than your expectations!
- Curb Debt
Debt is a vicious cycle that is too difficult to get out of. No, this is not meant to scare you but to help you realize that managing your debt is an essential step to becoming financially independent. The constant worrying of repaying payments owed to others can hinder your progress, both monetarily and mentally.
You must rationalize and select items of utmost priority and spend on them alone. Likewise, return debts on time so they do not accumulate.
- Freelance your way up
Freelancing might not be the easiest but it sure is rewarding. This is a global world where one can easily study and work on freelance projects simultaneously. So, you must not miss out on opportunities like these.
You must use this money to become financially independent and to invest in various sources of income if you want to be financially independent by 18.